Rhett: We are in the process of negotiating an ISDA with this counterparty which is a German Bank and is not a Multibranch Party. We just received their comments to our ISDA Schedule and they raised the following tax issues: 1. They have deleted the Section 3(f) rep in our Schedule and inserted "none". 2. In our tax forms section, they have deleted our language and added language that only requires them to give to us a Form 4224 in connection with payments received by them under the ISDA that are attributable to the conduct of a business in the US. 3. They have modified the definition of "Indemnifiable Tax" to include taxes imposed as a result of a Change in Tax Law by an authority in the jurisdiction of the payee, unless the payor is located in such jurisdiction . I will send you their mark-up but I need your advice on how to handle these comments. Thanks. Carol
Answer: Dresdner Bank
Here is an email: Please reverse all of the entex deferral entries from 9904 production to 0002 production. The amount on the matrix should be $456,196 in expense. For 0003 production please make the following entries(+ is a revenue entry): Counterparty Amount Central Power & Light $49,256 Calpine $(64,477) TXU $29,382 I also need entries made for Central Power and Light for previous months(new contract year started in 9911 prod) due to PMA's in 0004 GL (positive is revenue entry): Prod Month Amount 9911 $37,270 0001 $31,381 0002 $26,111 Please call with any questions. Thanks. PL
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A: Deferral account entries
Q: David: Mark and I were reviewing the Eligible Swap Participant rules and the following issue came up: If our counterparty is a limited partnership but our credit group is relying on the credit of the GP, do the rules require a written guaranty from the GP or is it enough to rely on the fact that under law the GP is jointly and severally liable for the LP's obligations? One of our counterparties is a limited partnership whose GP is a utility and their counsel has advised us that for regulatory reasons, the GP cannot enter into a Guaranty. I look forward to hearing from you. Carol
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A: ESP Question
As a follow up to our meeting yesterday, here is a proposed timeline for the simulation which is scheduled for Thursday February 7th between 9:00 am and 11:00 am (Houston time): Monday February 4th: Complete preparation of Simulation Events and scripts Tuesday February 5th: Credit will provide a list of priority counterparties (anticipated to be approved for launch date) Online Operations activates all counterparties on priority list in database and inactivates all other counterparties Credit uses Profile Manager to provide profiles for approved counterparties RAC inputs Sigma Factors into the database for all active Product Types Online Operations will issue new application and website User ID's and Passwords to Traders Online Operations confirms Product Types and Products are in the database Online Operations confirms Online Contracts are in the database Wednesday February 6th Online Operations completes desktop check-ups for all application and website user Traders access applications and review products and stack relationships Counterparty User ID's and Passwords will be issued to role players Credit rolls headroom into online database (evening) Online Operations confirms database is set to Simulation scripts Thursday February 7th Simulation Trading 9:00 to 11:00 (Houston time) 11:00 Emergency shut down of transaction system 11:00 Simulation feedback 11:00 - 3:00 process simulation transactions through mid and back office systems 3:00 - 8:00 Shut down all systems to purge transactions Credit rolls headroom into online database Please contact me if you have any questions or concerns on this. Please notify me if any of these tasks are not or will not be completed on the day suggested. Thanks
Answer:
Simulation Tentative Timeline