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Enron Mail |
The report of my absence is premature - I will be in our South American
offices Mon. - Thurs. of next week but am in the office in Houston all of this week. I am also not aware of any memoranda on point. I have seen the issue addressed in an off-hand way in one or more articles (not really legal analysis) and will keep my eyes open for those. The bottom line is usually that insurance requires an actual loss and proof of that loss before a claim can be made on the insurance while in the case of the derivative, no loss needs to be shown, only the actual weather conditions described in the agreement. Mark ---------------------- Forwarded by Mark - ECT Legal Taylor/HOU/ECT on 03/09/99 01:58 PM --------------------------- Shari Stack 03/09/99 11:57 AM To: Paul Simons/LON/ECT@ECT cc: Nick Mooney/LON/ECT@ECT, Lynda Clemmons/HOU/ECT@ECT, Mark - ECT Legal Taylor/HOU/ECT@ECT Subject: Re: Weather I am not aware of any ECT commissioned memo addressing why OTC Weather Transactions are not considered contracts for insurance. Mark may know something I don't but FYI- he is out of the office on business for the next 2 weeks. We do have a memo from Cadwalader which discusses whether a weather contract can be considered a "commodity" within the meaning of the U.S. Commodities Exchange Act. I will fax that over to you now for info. Kind regards, Shari
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