=============
Page 1 of 3
=============

atlonsi an ? ~t,r e Ctf~ Pea<goaaJ:Fin n cf.Sr t n~4 rr sax, ai ~ ~~ t W kshh*

Name of Borrower/Sponsor: Kenneth L & Linda P. Lay Prepared by Christopher H. Willis
Statement Date: 12/31196 Date Prepar 8125/97

				
PART 1: ASSET VALUATIONS			
Cash	79	1,267	89
Securities-			
. ;-.sernment & Municipal Obligations			3
Listed Stocks & Bonds	33,174	45,084	60.988 includes S46.7mm of liquidity of KLL&LPL (mostly Enron share)
ON STOCK OPTIONS
E R	14,047	18,656	32,793
v			
Notes & Mortgages			1,849
Accounts Receivables			
Income Tax Refund(s)			
Real Estate			
Personal Residence(s)	9,035	10,139	8,119 3 residences in Houston, Aspen CO, & Galveston, TX
Other 100% owned RIF.	1,536	1,536	3,448 investment properties
Equity in R/F. Partnerships			
Other			
Equity in Partnerships (Exo, RIE, Oil or Gas)	420	835	
Cash Value of Ins. & Annuities	0	0	
Retirement Plans, Deferred Comp., IRAs	1,728	2,689	3,093 Savings plans, KEOUGH, IRAs, etc
DEFERRED INCOME ACCOUNT	2,576	2,996	3,493 deferred income account
Personal Property	1,358	1,456	454 furnishings/personal property for residences
Other Assets	324	226	359 automobiles/boats, other
Total Assets	64,277	84,884	114,688
PART 2: LIABILITIES			
Credit Cards			
Installment Accounts			
Other Accounts Payable	22		
Notes Payable to Bank			
Unsecured	584	985	750 NB
Secured	5,583	4,850	3,525 Other
Other Notes Payable	21,310	20,533	30,000 NB stock secured
To Related Parties (Non-1LE)	0	0	0 due to Enron Corp. Lay has a S-IMM unsecured CLN there
Other (Non-R/T)			
Real Estate Liabilities			
M'rtgag•:s on Personal Residence(s)	5,078	6,136	5,099
Mon s !Notes other 100% owned PIE	700	1,039	745
Notes Due to RE Partnership/Corps			
Other direct WE debt			
Taxes Payable			
Income Taxes	421	251	
Other Takes			
Unrealized Asset Appreciation	4,668	7,489	13,117 Deferred tax liabilities
Oil & Gas Related Debt			
Margin Acct 1 Due to Brokers			
Loans against insurance / other Policies			
Other Direct Liabilities		51	97

Total Liabilities	38,366	41,334	53,333
			
STATED NET WORTH:	25,911	43,550	61,355
Contingent Liabilities			750
PART 3: CASH FLOW RECONCILEMENT			
Beginning Cash		79	1,267
Net Recurring Cash Flow	1,775	477	412
Non Recurring Sources (Uses)	-5,500	-2,485	1,191
Financing Sources (Uses)	4,500	6,699	0
Unexplained Change in Cash	854	5,879	425
Ending Cash	79	1,267	89

BOA/FBI/LAY: 30127

LBF002-00349


=============
Page 2 of 3
=============

Na,ur of n-

  Recurring Sourcr of. Cash
I. Salaries, Bonus.
  2. DWidcnds &.Interest
3. Stock Options
  4. Recurring Real Estate Inflows:
Net Rents - NO!
  R/E Partnership Distributions
OLhcr Recurring-. Np1
  5. Other Partnership Distributions
6. Other (inbl. Btu;. income, Trust
Income; NO1, Tax Refunds, Gifts,-etc.)
  7. SUBTOTAL
Recurring. Uses of Cafh
  8. Carrying Costs --Non-income R/E
9. Planned Investments; Partnership
Contributions & Capital Calls
10. Estimated Living Expenses
11. Estimated Taxes
12. Alimony
13, SUBTOTAL
14. CASH FL. AVAIL. FOR DEBT SERV
15. Real Estate Debt Service
16 Homr Mcrtg gr Pnynrr,.
17. Interest on Subject Loan
18. Sched. ConL Liab. PymL%.
  19. Other Scheduled Debt Service
20. SUBTOTAL -DEBT SERVICE
21. SUBTOTAL -RECURRING USES
22. NET RECURRING CASH FLOW
23. DEBT SERVICE COVERAGE

  Non-Recurring Snu set, (User)
24. Real Estate Sales
  25. New Real Estate Investment
26. Sale of Mkt. Sec.
  27. Purchase of MkL Sec.
  28. Other purch. & capital outlays
29. Other
  30. SUBTOTAL
31. NET CASH FLOW BEFORE
FINANCING ACTIVITIES

  Financing Sources (Uses)
32. Real Estate Financing
  33. Margin Financing
34. 1lomestead Financing
  35. Discretionary Debt Payments
36. Contingent Liability Payments
37 Other
  38. SUBTOTAL
39. NET CASH FLOW (DEFICIT)
ACTUAL. CHANGE IN CASH


  3;799
694
  4,569
103

3.362 7,797	_ - 1. Salary r Bonus: from Eru-oa & options
171 434	2- 1994 liquid ascots trunaf to K1.L.&.LP.L
4j938	3. Option income (not broker out in 1996)
	4.
63	
	5

163	168		6. taxable & non-taxable
9,328	8,702	8,231	0 7,_ (lines I through 6)
437	915		8. Home Maint. Inwood; Aspen & Gilveiton
	454		9. Greenhouse Expenses
	342		miscellaneous expenses & business expenses
2,478	2,020	2,500	10. From borrower
3.349	1,716	2,569	It. Est. 39% of income
77	78	88	12.
6,341	5,525	5,157	13. (lines 8 through 12)
2,987	3,177	3,074	14. (line 7-line 13)
150	150	155	15. Investment Prop. debt payments
530	530	530	16. Inwood, Asp= v Gctv-;toa, River Oaks
	2,020	1,977	17.
			18.
532			19.
1,212	2,700	2,662	20. (lines 15 through 19)
7,553	8.225	7,819	21. (line 13 + line 20)
1,775	477	412	22. (line 7 - line 21)
2.46	1.18	1:15	NDIV/0! 23. (line 14 + line 20)
			24.
-2,000	-1,650		25. RUE other homes
	1,605	402	26.
-3,500	-1,038		27.
	-1,076		28. partnerships, unclassified, transfer clearing
	-326	789	29. Misc. wage expenses
-5,500	-2,485	1,191	0 30. (lines 24 through 29)
			31.
-3,725	-2,008	1,603	(line 22 - line 30)
	-1,320		32. Aspen residence
4,500	11,716		33.
	3,260		34. NB construction
	-6,765		35. notes payable
			36.
	-192		37. personal loan, ST receivable
4.500	6,699	0	0 38. (lines 32 through 37)
775	4,691	1,603	0 39. (line 31-38)

BOA/FBI/LAY: 30128

-BF002-00350





=============
Page 3 of 3
=============

Borrower/Sponsor: Kenneth L. Linda P. Lay (inc Family Partnership) Prepared by: Chris Willis
Statement Date: 12/31/96 Date Updated: 8/25/97
  ----

1X7
0
07
r
-G
W
0
N

  1. Cash & Equivalents
  2. Deferred compensation
  3. Listed stocks & bonds (+KLL&LPL Invest
4.
  5.
6. Notes Reveivable
7. Stock Options
  8. Primary Residences
9. Other 100% owned RE
10.
11.
12.
13. Personal Assets
14. Retirement Assets
15.
16. Other
  Subtotals:
PART II:
  Unsecured
Debts & Creditors

  Accrued Taxes & Other Liabilities
Deferred Taxes - Options

  NB
K Contingent Liabilities expected to be paid

92	100%	92		92	Primarily NB accounts
3,493	100%	3,493		3,493	
60,988	75%	45,741	34,275	11,466	$46.7mm in KLL&LPL - $14.2mm in Ken & Lind
I
1,849	50%	925		925	
32,793	80%	26,234		26,234	Exerciseable Options(net of cost)Enron&Cotiipaq
8,119	80%	6,495	5,099	1,396	
3,448	80%	2,758	745	2,013	
454	30%	136		136	Autos, home furnishings, etc.
3,093	70%	2,165		2,165	IRA's, Keough plan
359	25%	90		90	Miscellaneous, various
114,688		88,130	40,119	48,011	
G		H		J	
				Unsecured	
		Total Unsecured Av	ailability	Outstandings	
		97	
		13,117	
		750	
Subtotals:	0 0	13,964	
Subtotals: 0 0 0	
ADJUSTED NET WORTH	34,047	

BF002-00351