Problem: BODY: Please let me know why my VAR is $2.2 million. My position is 108.3 short, so I need to know why the VAR is so large . Hunter would like an answer as soon as psossible. Thanks
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A: SUBJECT: Var for Patrice Thurston for 4/2/01

Problem: BODY: Below is a summary of the surety bond issues that I believe we need to resolve in order to feel comfortable accepting it as a form of collateral to secure a counterparty's obligations with respect to physical power purchase and sale transactions: 1. Determine whether an issuer can refuse to honor a draw made under a surety bond if after issuance, it determines that the bond was issued in violation of the appleton statute. What type of legal comfort should we receive from the issuer at the outset to get comfortable that the bond was validly issued and is enforceable against such issuer? 2. Determine the proper minimum credit rating(s) that should apply to the issuer. 3. In the form of bond that we were given, the "Now Therefore" language in the third paragraph is not acceptable. Determine what can be said in its place to establish the necessary linkage back to the transaction covered by the Confirmation. 4. Make sure that the bond can be drawn down no matter what type of Event of Default occurs, even if such event is not related to the transaction that the bond references. The Notice of Claim language needs to be written more generically to accommodate this. 5. Does credit need a "pre-bankruptcy" trigger that would require Reliant to convert all outstanding bonds into LC's or cash collateral? If so, what would this trigger be? Let me know if you have any additional issues. I will be discussing some of these with our outside counsel shortly.
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A: SUBJECT: Surety Bond Issues

Problem: BODY: Why is the mkt so damn strong? Also, give me a call when you have a minute. I need to discuss this swing set stuff w/ you.
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A:
SUBJECT: ??