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r-uuuc repomng ouroen for into eohi-non of Information Is s., .: ted to ave~et ~e1011<a (0.031 hours) Par O.M.B. No. 7100-0115
response, Including the time for revlewtng instructions, searching existing data a a, gathering and maintaining Approval expires June 30, 1994
th:i data needed, and completing and ,.viewing tM -fiction of Information. Send comments regarding it -urden
+stimata, Including suggestions for reducing this 'en, to Secretary, Board of Governors of the Feder; nerve
item, 20th and C Streets, N.W., Washington, D.C. 20551; and to the Office of Management and Budget, Paperwork
luctlon Project (7100-0115), Washington, D.C. 20501.

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Statement of Purpose foran Extension of Credit
  Secured by Margin Stock
NationsBank of ;Texas, N.A.
Name of Bank

(Federal Reserve Form U-1)

This form Is required by law (15 U.S.C, f§TBg and 78w; 12 CFR 221).

INSTRUCTIONS

1. This form must be completed when a bank extends credit In ex-
cess of $100,000 secured directly or indirectly, in whole or in part,
by any margin stock.

2. The term "margin stock" Is defined in Regulation U (12 CFR 221)
and includes, principally: (1) stocks that are registered on a na-
tional securities exchange or that are on the Federal Reserve
Board's Ust of Marginable OTC Stocks; (2) debt securities (bonds)
that are convertible Into margin stocks; (3) any over-the-counter

  security designated as qualified for trading in the National Mar-
ket System under a designation plan approved by the Securities
and Exchange CommissloR(NMS security); and (4) shares of mutu-
aI funds, unless 95 per cent of the assets of the fund are tontines-
ousiy invested In U.S. government, agency, state, or municipa,
obligations.
3. Plea" print or type (If space Is inadequate, attach separate sheeti

PART I. To be completed by borrower(s),

  What Is the amount of the credit being extended? $7 r 500 , 000. 00

2. Will any part of this credit be used to purchase or carry margin stock? K) Yes O No
It the answer Is "no," describe the specific purpose of the credit.

I (we) have read this form and certify that to the best of my (our)
knowledge and belief the Information given is true, accurate, and
complete, and that the margin stock and any other securities col•

tateralizing this credit are authentic, genuine, unaltered, and not sto-
ten, forged, or counterfeit.
Y'.

  Signed: Signed:
• SI nuurs q NjMWtbiWP Signature D
  Kenneth L. Lay _Li da P. Lay
Print or Type Name Print or Type Name

This form should not be signed In blank.

A borrower who falsely certifies the purpose of a credit on this
form or otherwise Willfully or Intentionally evades the provisions
of Regulation U will also violate Federal 'Reserve Regulation X,
"Borrowers of Securities Credit."

BOA/FBULAY: 29727

-BF002-00166

GOVERNMENT
EXHIBIT
  185
  Crim. No. H-04-25 (S-2)


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,,,-r L -
1. List the margin stock securing this cre 1o not Include debt securities convertible mid 'gin stock. The maximum loan value of margin
stock is ...... per cent of Its current marks.. ralue under the current Supplement to Regulation U.

No. of	Issue	Market price	Date and source	Total market
shares		per share	of valuation	value per Issue i
			(See note below)	
228,935	Enron Corp. Common	$30.00	8/23/94	$6,868,050.001
			WSJ	1
i

Principal
amount	Issue	Market price	Date and source
of valuation
(See note below)	Total market
value per issue
				

2. List the debt securities convertible into margin stock securing this credit. The maximum loan value of such debt securities is ...... aer
cent of the current market value under the current Supplement to Regulation U.

3. List other collateral Including nonmargin stock securing this credit.

Describe briefly	Market price	Date and source

of valuation
(See note below)	Good faith
i
loan value i
			i

Note: Bank need not complete "Date and source of valuation" If the market value was obtained from regularly published Information in a journal of general
circulation.

PART Ill. To be signed by a bank officer In all Instances.

am a duly authorized officer of the bank and understand that this
credit secured by margin stock may be subiact to the credit restrtcs dons of Regulation U. I have read this form and any attachments,
and I have accepted the customer's statement In part I In good faith
as required by Regulation U', and I certify that to the best of my
knowledge and belief, all the Information given is true, accurate, and
complete. I also certify that If any securities that directly secure the
credit are not or will not be registered in the name of the borrower
or Its nominee, I have or will cause to have examined

			
Date			
			
V i r•+-P r es A	e .		r
			
Tltie			

the written consent of the registered owner to pledge such securi-
ties. I further certify that any securities that have been or will be phys-
ically delivered to the bank In connection with this credit have been
or will be examined, that all validation procedures required by bank
policy and the Securities Exchange Act of 1934 (section 17(f), as
amended) have been or will be performed, and that I am satlsfled
to the best of my knowledge and belief that such securities are
genuine and not stolen or forged and their faces have not been
altered.
Signed: r ~~/;'

Bank oftlcev s sipgature

Print or type name

'To accept the customer's statement In good faith, the officer of the bank must be alert to the circumstances surrounding the credit and, If In possession of
any Information that would cause a prudent person not to accept the statement without Inquiry, must have investigated and be satisfied that the statement
Is truthful. Among the facts which would require such investigation are receipt of the statement through the mail or from a third party.

This form must be retained by the bank for at least three years after the credit is extinguished.

BOA/FBi/LAY: 29728

LBF002-00167