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Enron Mail |
Homer -
The problem with the language you suggest is that it will be triggered by any term that is longer than a month. As far as I know, we have never had a product that went from mid-month to mid-month. Is that a real issue for us here? We have language in a few products already that takes care of the second issue (deals shorter than one month): Each calendar month during the term of the Transaction will be a Determination Period; provided that, if the term of the Transaction is less than one calendar month, the Determination Period shall be the term of the Transaction. In some cases (e.g. power swaps), when the deal is for less than a month the payment dates are modified to fall at the beginning of the following month (rather than 5 days after the floating price is determinable). That is a commercial call. Just let me know how you want to handle that issue. If mid-month to mid-month deals are likely, let me know and I will come up with alternative language. Mark Homer Lin 06/01/2001 10:15 AM To: Mark Taylor/HOU/ECT@ECT, Joe King/Enron@EnronXGate, Scott Moncrieff/Enron@EUEnronXGate cc: Carlos Alatorre/Enron@EnronXGate, Robert Quick/Enron@EUEnronXGate Subject: Re: Tanker Freight Long Description Mark, Looks good. The product description looks fine for copying the shipping products that Scott Moncrieff is trading now in London. I'm a little concerned about the line: "Each calendar month during the term of the Transaction will be a Determination Period"... Is it flexible enough in changing determination periods from mid-month to mid-month? As in June 15 to July 14 to represent a month? Or will that just be another Long Description that we would have to draft for another product type? Also, what if we wanted to break up the determination periods into smaller increments than one month? Let us say a 1-week or 2-week period instead of a full month. May be something like: "Each calendar month during the term of the Transaction will be a Determination Period unless otherwise specified by the Effective Dates" That's my two cents, Homer x57642 From: Mark Taylor on 05/31/2001 06:25 PM To: Joe King/Enron@EnronXGate, Homer Lin/HOU/ECT@ECT, Carlos Alatorre/Enron@EnronXGate cc: Scott Moncrieff/Enron@EUEnronXGate, Robert Quick/Enron@EUEnronXGate Subject: Tanker Freight Long Description Here is a draft of the US version. Please let me know if it works for you.
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