Re: Online GTCs

Frank and Tom:

I believe the instructions below quoting EOL and Credit are incorrect.

If the credit status of a counterparty changes and they "click" to execute an
online GTC, then our Global system should reflect the current online GTC and
not the previous online GTC.

Right?

Cyndie Balfour-Flanagan@ENRON
08/08/2000 06:17 PM
To: Linda S Bryan/HOU/ECT@ECT, Anthony Campos/HOU/ECT@ECT, Karen
Lambert/HOU/ECT@ECT, Stacey Richardson/HOU/ECT@ECT, Bridgette
Anderson/Corp/Enron@ENRON, Chris Mendoza/HOU/ECT@ECT, Susan
Elledge/NA/Enron@Enron
cc: Karen Lambert/HOU/ECT@ECT
Subject: Online GTCs

Just an FYI. Per EOL & Credit, if we already have an Online GTC w/Collateral
& the credit status of the counterparty is amended so that they no longer
require collateral - - - - - there is no need to establish a new OnLine GTC.
The OnLine GTC w/Collateral remains the preferred online GTC since a
collateral agreement was previously in place. HOWEVER, the reverse DOES NOT
hold true - - - - If credit status is amended so that the counterparty does
require collateral - - - - a new GTC w/Collateral MUST BE established. Rule
of thumb, collateral is better than no collateral if it has ever been
required.

In summary, if you receive a GTC request for an OnLine GTC without collateral
be sure to check available contracts for an Online GTC w/Collateral first. If
one is already in place, DO NOT set-up a new GTC. Notify Deal Validation to
use the OnLine GTC w/Collateral according to the above mentioned note.

Thank you!
Cyndie