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Enron Mail |
Peter -
We have thought about this from time to time. Our primary concern has not = been the strict adherence to the contractual notice requirements (because o= f the lack of substantive concern you mention) but the fear of possible wai= ver of rights that might take place if the requests are not consistent or h= andled carefully. These are all issues that apply to trading margin calls = generally. Most recently Carol St. Clair, who Mark H. has asked to be the = point lawyer for Credit and credit issues, has been working on this problem= . =20 Mark =09Peter Keohane 05/31/2001 11:54 AM =09 To: Mark Taylor/HOU/ECT@ECT cc:= William S Bradford/Enron@EnronXGate, Russell Diamond/Enron@EnronXGate Sub= ject: Margin Calls - Financial=09 Mark, I recently was dealing with Russell in Credit on a margin call letter= for IMC Canada and it seemed to me that the letter in substance met Credit= 's requirements but did not comply with the ISDA in terms of formalities (i= .e. use of defined terms, currency specification, notice and delivery timin= g, notice addresses, etc.). It seemed to me that the form they are using m= ay have been drafted some time ago and needs to be updated so that it is no= t a drafting exercise on a case by case basis. Practically, to the extent = that the counterparty will not object to delivery, there really is no subst= antive concern. However, as credit is becoming a significant issue in comm= odity markets, if the counterparty wants to object, particularly in circums= tances where their credit is getting "tight", I can see the lack of contrac= tual compliance perhaps being problematic. Can somebody in your group deve= lop a template (perhaps a few will be required) that could be used under th= e Enron form, the "industrial" form, the ISDA form and for Canada. Please = call Russell, Bill or me to discuss. Peter.
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