Many of you have been involved in recent efforts to either amend documents to 
provide for rehypothecation of securities or additional collateral 
arrangements, both resulting from cash constraints in the market. In that 
regard, it appears that our credit group will be very interested in accepting 
different forms of government obligations, including Treasury Bills, Treasury 
Notes and Treasury Bonds.  Our current version of Paragraph 13 does not have 
the "choice" for Eligible Collateral consisting of longer dated obligations 
such as Treasury Notes and Bonds; our earlier version did provide this 
option.  

LEGAL:  When preparing new master agreements, please be specific about credit 
requests to include securities and verify with credit the specific types of 
Eligible Collateral to be included in Paragraph 13. 

CREDIT:  When drafting credit worksheets, please be  specific when requesting 
types of Eligible Collateral other than cash.

We may consider amending Paragraph 13 again or adding additional forms of 
Eligible Collateral to Library Doc.