Rule 4001-2

Cash Collateral

(a)  Agreement or Motion for Immediate Use of Cash Collateral.

(1)  Conspicuousness Requirement for Cash Collateral Agreements or Motions.  In any agreement or motion seeking approval to use cash collateral under Code § 363, the first or second paragraph must conspicuously state whether any of the kinds of relief identified in LR 4001-4(b) are sought and, if so, identify the pages of the agreement or motion and the attached exhibits that support the relief.

(2)  Interim Order.

(A)  Agreement.  Where the debtor and one or more parties with an interest in the cash collateral have agreed to the immediate use of cash collateral, the Court, based on the parties’ stipulation, may enter an interim order approving the agreement.  

(B)  Motion.  Where the debtor seeks to use cash collateral, without the consent of a secured creditor with an interest in the collateral, the Court, upon motion and after a hearing, may enter an interim order as authorized by FRBP 4001(b)(2).

(3)  Service and Form of Notice.

(A)  Agreement.  The debtor must serve notice of any interim order and the bar date for objections on parties to the agreement, parties in interest, the United States Trustee, and entities entitled to notice under FRBP 4001(d). The notice must contain:  (i) a detailed description of the terms of the agreement and the interim order, or in lieu of a detailed description, a copy of the agreement and interim order; (ii) the date by which objections must be filed and served, which shall be fourteen (14) days from the date the notice is served, unless ordered otherwise by the Court; and (iii) the names and addresses of those persons on whom objections must be served. The notice must state that, if no objection is timely filed and served, the Court may direct that the interim order shall continue in effect until a specified date or that the interim order shall become the operative order on the use of cash collateral until modified by the Court.

(B)  Motion.  The debtor must serve notice of any interim order, the bar date for objections, and the date of the final hearing on the motion for use of cash collateral on all parties in interest, the United States Trustee, and entities entitled to notice under FRBP 4001(b). The notice must contain:  (i) a detailed description of the terms of the proposed use and the interim order; (ii) the date by which objections must be filed and served, which shall be no less than fourteen (14) days from the date the notice is served, unless ordered otherwise by the Court; (iii) the names and addresses of those persons upon whom objections must be served; and (iv) the date of the final hearing on the motion for use of cash collateral.

(4)  Certificate of Service.  The debtor must file a certificate of service evidencing compliance with this LR and FRBP 4001(d).

(5)  Procedure to Obtain a Hearing.  If a timely objection is filed and served, the debtor must obtain a hearing date and provide notice under this LR and FRBP 4001(d). If an expedited hearing is required, the moving party must file a motion in compliance with LR 9013-1(h) and obtain a hearing date from the courtroom deputy.

 


Notes 2018:  LR was updated to add a provision for cash collateral motions and to clarify that first day cash collateral relief is controlled by LR 4001-4.

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