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 of 
the lack of substantive concern you mention) but the fear of possible waiver 
of rights that might take place if the requests are not consistent or handled 
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.  

Mark



	Peter Keohane
	05/31/2001 11:54 AM
		 
		 To: Mark Taylor/HOU/ECT@ECT
		 cc: William S Bradford/Enron@EnronXGate, Russell Diamond/Enron@EnronXGate
		 Subject: Margin Calls - Financial

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 timing, 
notice addresses, etc.).  It seemed to me that the form they are using may 
have been drafted some time ago and needs to be updated so that it is not 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 substantive 
concern.  However, as credit is becoming a significant issue in commodity 
markets, if the counterparty wants to object, particularly in circumstances 
where their credit is getting "tight", I can see the lack of contractual 
compliance perhaps being problematic.  Can somebody in your group develop a 
template (perhaps a few will be required) that could be used under the Enron 
form, the "industrial" form, the ISDA form and for Canada.  Please call 
Russell, Bill or me to discuss.  Peter.
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