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



ENRON
CORP

I

11/29/95

Re: Paying off Enron Loan

K,

I've realized were advised by James that
according Reg U, e cannot use borrowed
funds to a u ose loan.

8/22 $2,605,000.00 to pay down purpose line
11/8 1.926.983.60 "
$4,531,983.60
10/4 - 173,000.00 repaid from income for 9/95
10/26 -1,000,000.00 repaid from option exercise
$3;358,983.60 outstanding balance

Legally, we can pay back another $155,292 from
income for the 10/1 - 11/29 period, but no more
than that. Please advise.



Sally Keepers

LAY-G18 0183