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Enron Mail |
John - While we can delete Part 6 it then becomes necessary to add additional
language in each confirmation which is not part of the templates for transactions used by the back office. Each transaction would therefore require significant additional time and effort to prepare making it more cumbersome to do business with that counterparty. There is no down-side to having the language in the master - the whole point of the master is that we agree to these things now so we don't have to deal with them at the confirm stage. You can say "it's enough if the terms are referred to in the confirmation" for ALL of the terms of the master. Since we would insist on the appropriate provisions being in the confirm in any event, if they have a problem with this language we need to know now what the problem is. With respect to the CSA, that is an issue for Credit. It is certainly not necessary to have a valid agreement but it is necessary if you want to insist on collateral. In this case, if IBJ is a stronger credit than Enron it may well be that the csa is more of a burden than a benefit. It strikes me as disingenuous to say that they don't have the internal systems for csa's with nonfinancial counterparties - the same systems would work for nonfinancial parties as well as financial parties. John Viverito@ENRON 08/30/2000 07:49 PM To: Mark Taylor/HOU/ECT@ECT cc: Jonathan Whitehead/AP/Enron@Enron Subject: Re: IBJ ISDA MASTER AGREEMENT Mark- We have received some preliminary comments from IBJ, attached hereto for your review. Please give me your thoughts regarding deletion of Part 6 of the Schedule and not utilizing the CSA. Thanks, John ----- Forwarded by John Viverito/Corp/Enron on 08/30/2000 07:44 PM ----- "Yamato Konishi" <yamato.konishi@ibjbank.co.jp< 08/30/2000 07:59 AM To: <John.Viverito@enron.com< cc: <Jonathan.Whitehead@enron.com<, "Tom Bruce-Jones" <Tom.Bruce-Jones@enron.com<, "teruyo.suzuki" <teruyo.suzuki@ibjbank.co.jp<, "Maeda san" <kazunobu.maeda@ibjbank.co.jp< Subject: Re: IBJ ISDA MASTER AGREEMENT Dear Mr.Viverito Thank you very much. Now we start checking your draft and maybe we can return comment on this Friday. Please be advised following points at this time. 1)Part 6 on the schedule is needed to be deleted. We think that it's enough if the terms in Part 6 are referred in the individual confirmation. 2)ISDA Credit support annex is not acceptable Unfortunately, we don't have internal system for concluding CSA with non-financial entity. Please keep support us for concluding ISDA ASAP for our business in near future. If any question, please feel free to contact me. Best regards, Konishi /IBJ Tokyo 81-3-3214-1008 ----- Original Message ----- From: <John.Viverito@enron.com< To: <yamato.konishi@ibjbank.co.jp< Cc: <Jonathan.Whitehead@enron.com< Sent: Wednesday, August 30, 2000 5:31 PM Subject: IBJ ISDA MASTER AGREEMENT < Dear Mr. Konishi, < < Attached hereto, is the draft ISDA documentation, for your review. < Included are the Schedule, the Credit Support Annex and the Enron Corp. < Guaranty. < < I apologize for the delay in the preparation and distribution of these < documents. < < We look forward to receiving your comments. < < Best regards, < < John Viverito < < < (See attached file: IBJ Schedule 30.08.00.doc)(See attached file: IBJ CSA < 30.08.00.doc)(See attached file: IBJ EC guarantee 30.08.00.doc)
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