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Enron Mail |
Thanks for raising the issue. Keep me posted! Mark
Christian Yoder 03/08/2001 09:38 AM To: Steve C Hall/PDX/ECT@ECT, pgboylston@stoel.com cc: Tracy Ngo/PDX/ECT@ECT, Elizabeth Sager/HOU/ECT@ECT, Richard B Sanders/HOU/ECT@ECT, Mark E Haedicke/HOU/ECT@ECT Subject: BPA: anatomy of payment mechanism Whereas in the California phase of the western power crisis, we had to deal with the emergence of a new governmental agency, CDWR, and figure out whether or not and how it might pay us, in the next, northwest phase, where we will probably have to deal with the disintegration, or at least misbehavior, of a powerful federal rogue agency, BPA, one issue that will invariably arise is payment default by BPA. As we have blithely sailed along with BPA up until now, we often say to ourselves, "Oh, when you contract with BPA, you are backed by the good faith and credit of the United States of America." I would like you both to put your heads together and decide who at your firm can give us a memo addressing BPA's payment mechanisms from a legal, statutory perspective. It bothers me to hear things like; "they only have $700 million in their warchest," or "if they can't make their Treasury payment they are toast." What do these kinds of remarks mean to us legally? Are we contracting with the surplus bloated Treasury of the United States of America or are we going to have a rude surprise and find out that we are contracting with one of these discrete funds that can run out of cash and be held hostage by warring politicians? We need a concise legal analysis of this point very soon. ----cgy
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