procedures in stay relief matters; order for procedures re: motions for summary judgment; order for procedures re: chapter 11 cases; PREFERRED FORM OF ORDER AVOIDING A LIEN ON REAL PROPERTY (CHAPTER 13); APPROVAL OF DISCLOSURE STATEMENT; SETTING CONFIRMATION HEARING; AND FIXING DEADLINES

=== procedures in stay relief matters ===

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In Re: PROCEDURE ORDER RE: STAY RELIEF MATTERS ORDER CONTINUING STAY IN EFFECT PENDING PRELIMINARY HEARING AND ESTABLISHING PROCEDURES FOR RESOLUTION OF STAY RELIEF MOTIONS A Motion for Relief from Stay (the "Motion") and an objection thereto having been filed; IT IS ORDERED THAT: 1. The provisions of Local Bankruptcy Rule 4001-1 shall apply to all further proceedings on the Motion, except as modified by this Order. 2. Unless otherwise ordered by the Court, the provisions of Rule 26(a)(1), (d), (e)(1), (f), and (g)(1), Federal Rules of Civil Procedure (as amended 1993), otherwise made applicable to this proceeding by Rules of Bankruptcy Procedure 9014 and 7026, shall not apply to further proceedings on the Motion. 3. may schedule a preliminary hearing on the motion on one website at www.azb.uscourts.gov, provided that seven of the dates and times listed on the (7) counsel and other respondents, and all other persons entitled to notice under applicable rules and procedures, and their counsel. To obtain the current list of available hearings, notice of such hearing must be provided to debtor, m , Jr hearing for notice to be effective. A. A copy of the Procedure Order MUST be attached to the notice of B. A copy of the ECF receipt for the notice MUST be emailed to [email protected] at least seven days prior to the hearing in order for the matter to be properly calendared. Failure to email the receipt will result in the hearing having to be continued to a later date and time and renoticed. #703, Phoenix, AZ. C. Hearings will be held at 230 N. First Ave. 7th Floor, Courtroom 4. Prior to the preliminary hearing, counsel for all parties shall have personally consulted about all issues regarding the Motion including, but not necessarily limited to the following, A. Whether an evidentiary hearing is required; if so, the dates for discovery cut off, exchanging lists of witnesses and copies of all exhibits, filing the Joint Pretrial Statement and when the parties will be ready for the evidentiary hearing and the amount of time requested for the hearing; B. The briefing schedule by which all memoranda will be filed; C. All factual matters which are not disputed; D. All factual matters which are disputed; E. The scheduling of a further hearing(s), preliminary or final, on the Motion and such other issues as any party deems material. The parties shall cooperate in timely discussing all such issues prior to the hearing. 5. Any witnesses not identified in the Joint Pretrial Statement and exhibits not identified in and exchanged at the time of the filing of the Joint Pretrial Statement will not be heard or admitted into evidence. The failure of any party to cooperate in and/or timely comply with these procedures may result in the imposition of sanctions against such party and/or the attorney for such party. 6. Based on a review of the entire record in the pending case, all the pleadings, and such notice and opportunity for hearing as are appropriate in these circumstances, the Court finds it appropriate to continue the stay in full force and effect pending the preliminary hearing and further order of this Court. 7. The parties are advised that the Court's intention is to resolve the motion at the preliminary hearing. In the event the motion is not so resolved and the Court sets a final hearing, the presentation of direct evidence at such hearing shall be governed by the following procedures: A. Each party shall serve upon the other party(ies) all documentary evidence (including, subject to subparagraph (b) hereof, appraisal reports and other expert documentary evidence) it intends to introduce at least fourteen (14) days before the final hearing. The parties shall attempt in good faith to stipulate to the admissibility of such documentary evidence. B. Any party intending to introduce appraisal reports or other expert documentary evidence shall comply with F.R.C.P. 26(a)(2), except as modified herein. Such party shall serve a copy of such report or document upon the opposing party as quickly as such report is available and, in any event, within such time that the deposition of such expert, if desired by the other party, can reasonably be scheduled and taken prior to the final hearing. The proposed timing of such disclosure shall be taken into account by the Court in setting the time for the final hearing. Therefore, any request for a continuance of the final hearing based upon the unavailability of such reports or the failure of a party to have taken an expert's deposition will be disfavored. The parties shall attempt in good faith to stipulate to the admissibility of such documentary evidence. C. All direct testimony of any expert witness or any witness on the amount of debt owed by the debtor, shall be by written declaration. Each party shall file and serve the sworn declarations of all such witnesses at least seven days (7) days before the final hearing. The parties are reminded that the evidence in such declarations must be in admissible form and that adequate foundation must be provided in such declaration(s) for any documentary evidence which has been exchanged but not stipulated into evidence. Any application for permission to introduce direct oral testimony on these subjects shall be served and filed seven (7) days before the final hearing and shall include the names of the witnesses, the subject of their expected testimony, and a statement of the reasons why the testimony cannot be properly introduced by declaration. D. If a party intends to cross-examine any of the opposing party's declarants, or to object to the admissibility of any part of the opposing party's declarations, that party shall so notify the opposing party by telephone at least three (3) days before the hearing and shall simultaneously file with the Court and serve upon opposing counsel a list of any such objections. 8. If the parties settle this matter, they shall immediately notify this Court and file a stipulation and order, or other appropriate pleadings, which shall provide, among other things, for the vacating of all scheduled hearings. Counsel for the movant shall immediately serve a copy of this Order on the debtor, debtor's counsel and any other respondent(s) and such respondent's counsel named in the Motion. Dated: 2/15/13 /s/ Eddward P. Ballinger, Jr. EDDWARD P. BALLINGER, JR. U.S. BANKRUPTCY JUDGE

=== order for procedures re: motions for summary judgment ===

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In Re: PROCEDURE ORDER RE: MOTIONS FOR SUMMARY JUDGMENT ORDER SETTING BRIEFING SCHEDULE A motion for summary judgment having been filed, IT IS HEREBY ORDERED AS FOLLOWS: 1. Both the moving and responding parties shall comply fully with the requirements of Rule 9013-1(g) of the Local Rules of Bankruptcy Procedure for the District of Arizona. This means, in part, that both parties must file separate statements of facts and memoranda of points and authorities in support of their respective positions as set forth in the Rule. A responsive memorandum shall be filed no later than thirty (30) days after service of the motion. A reply memorandum shall be filed no later than fourteen (14) days after service of a responsive memorandum. Failure to timely file a responsive memorandum shall constitute consent to the granting of the motion. Failure to timely file a reply memorandum shall constitute grounds for the court’s disregarding of the memorandum. 2. Stipulation or motions for altering the above briefing schedule shall be filed on or before the date on which the response or the reply is due. 3. Any motion or stipulation to shorten the time for hearing shall set forth a proposed altered briefing schedule. 4. A copy of this order MUST be attached to the notice of hearing for notice to be effective. DATED: 2/15/13 /s/ Eddward P. Ballinger, Jr. EDDWARD P. BALLINGER, JR. U.S. BANKRUPTCY JUDGE

=== order for procedures re: chapter 11 cases ===

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA In Re: PROCEDURE ORDER RE: CHAPTER 11 CASES ORDER CHAPTER 11 PROCEDURES The Debtor-in-Possession (“Debtor”), or an authorized representative of the Debtor, and counsel for the Debtor shall be prepared to discuss and/or resolve, at the Court’s direction, the following issues: 1. 2. 3. 4. 5. 6. 7. The nature of the Debtor’s operations and the factors leading to the filing of a Chapter 11. Whether any professionals have been or will be employed by the Debtor. Any unique issues regarding secured debt, employees, executory contracts, cash collateral, existing management and/or equity owners. A deadline for the filing of a plan and disclosure statement. A deadline for the filing of proofs of claim and interests. The status of Debtor’s post-petition operations. The status of any litigation involving the Debtor. The Debtor is directed to serve a copy of the Notice of Hearing and this Procedure Order to all creditors and parties in interest no less than 21 days prior to the status conference and to file a certificate of mailing with the Clerk of Court. The scope of the notice required by this Order may be modified upon good cause shown by the Debtor. DATED: 2/15/13 /s/ Eddward P. Ballinger, Jr. EDDWARD P. BALLINGER, JR. U.S. BANKRUPTCY JUDGE

=== PREFERRED FORM OF ORDER AVOIDING A LIEN ON REAL PROPERTY (CHAPTER 13) ===

1 2 3 4 5 6 7 8 9 10 11 12 13 14 In re: UNITED STATES BANKRUPTCY COURT DISTRICT OF ARIZONA Chapter 13 Case No.: ORDER Debtor(s). On , Debtors filed a to value the lien of ("Lienholder") against the property commonly known as 15 16 more fully described in Exhibit "A" hereto, which lien was recorded in 17 on or about , as document number and County ("Junior Lien"). This Junior Lien is in ______ position and in the approximate amount of $ . The first lien is held 18 19 by 20 worth approximately $ in the approximate amount of $ . The property is . Therefore, there is no secured value in the amount of the 21 Junior Lien. Lienholder having failed to file timely opposition to Debtor’s motion, the Court hereby 22 23 orders as follows: 24 1. For purposes of Debtors' Chapter 13 plan only, the Junior Lien is valued at zero. Lienholder does not have a secured claim and the Junior Lien may not be enforced, 25 26 pursuant to 11 U.S.C. §§ 506, 1322(b)(2) and 1327, provided that the Chapter 13 case is 27 28 completed and the Debtors' receive a discharge. 2. This order shall become part of Debtors' confirmed Chapter 13 Plan. 1 3. Upon entry of a discharge in Debtors' Chapter 13 case, the Junior Lien shall be 2 voided for all purposes and, upon application by Debtors, the Court will enter an appropriate 3 4 form of judgment voiding the Junior Lien. 4. If Debtors' Chapter 13 case is dismissed or converted to Chapter 7 before 5 Debtors obtain a discharge, this order shall cease to be effective and the Junior Lien shall be 6 retained to the extent recognized by applicable non-bankruptcy law and, upon application by 7 Lienholder, the Court will enter an appropriate form of order restoring the Junior Lien. 8 5. Except as provided by separate, subsequent order of this Court, the Junior Lien 9 may not be enforced so long as this order remains in effect. 10 6. The Proof of Claim filed by Lienholder (Claim No. on the Claims 11 Register), regarding this Junior Lien, is hereby reclassified and shall be paid as a general 12 unsecured claim. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DATED AND SIGNED ABOVE. 2

=== APPROVAL OF DISCLOSURE STATEMENT; SETTING CONFIRMATION HEARING; AND FIXING DEADLINES ===

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 UNITED STATES BANKRUPTCY COURT DISTRICT OF ARIZONA In re: Chapter 11 Proceedings Click or tap here to enter DEBTOR NAME(S), Case No. Click or tap here to enter Case Number Debtor(s). ORDER SETTING AND NOTICE OF: 1. APPROVAL OF THE DISCLOSURE STATEMENT; 2. SETTING CONFIRMATION HEARING; AND 3. FIXING DEADLINES TO (i) OBJECT TO PLAN, (ii) VOTE ON PLAN, and (iii) OBJECT TO DISCHARGE TO: ALL CREDITORS AND OTHER PARTIES IN INTEREST: The Court has considered the Click or tap here to enter text (“Disclosure Statement”) filed by Click or tap here to enter text (“Proponent”) and has determined that the Disclosure Statement contains adequate information to allow creditors to make informed decisions regarding the Proponent’s Click or tap here to enter text (“Plan”), and good cause appearing; IT IS ORDERED AND NOTICE IS HEREBY GIVEN THAT: 1. APPROVING THE DISCLOSURE STATEMENT: The Disclosure Local Form 3003-3 (08/18) Order Setting Confirmation Hearing Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Statement is approved; 2. HEARING ON CONFIRMATION OF THE PLAN: The Court will consider whether to confirm the Plan at a hearing on Click or tap to enter a date, at Click or tap here to enter time (hh:mm) Click or tap here to choose a.m. or p.m. (“Confirmation Hearing”). The Confirmation Hearing will be held in Courtroom Click or tap here to enter Courtroom number or letter, at the Click or tap here to choose Court address/location. Parties may also appear by video from Click or tap here to choose Video location(s).1 3. DEADLINE TO OBJECT TO THE PLAN: Any party desiring to object to confirmation of the Plan must file a written objection with the Court via the Electronic Court Filing System or, if the objecting party is not an authorized user of the System, then by delivering the objection to the Court Clerk of the Court.2 The objection must be filed by Click or tap to enter the deadline for objection(s) (which date is at least seven (7) calendar days prior to the initial confirmation hearing). Any party that files an objection to confirmation of the Plan must serve a copy of the objection on the Proponent at the 15 following address: 16 17 18 19 20 21 22 23 24 25 26 27 28 Name of Proponent or its Attorney Name of Firm, if applicable Proponent or Firm Street Address Proponent or Firm City, State and Zip Code 4. DEADLINE TO VOTE: The Proponent shall provide creditors with a copy of a ballot conforming to Official Form No. 14 (“Ballot”). Any creditor desiring to vote for or against confirmation of the Plan must complete and sign a Ballot. To be timely, a completed Ballot must be delivered to the Proponent at the address listed in paragraph 3 above by Click or tap to enter a date (which is at least five (5) business days prior to the 1 If video appearances/locations are not set by the Court, please delete from “Parties may also appear by video from” and “Click or tap here to choose Video location(s)” and footnote “1.” 2 The Clerk’s office in Phoenix is located at the U.S. Bankruptcy Court, 230 N. First Ave, Suite 101, Phoenix, AZ 85003 and the Clerk’s office in Tucson is located at the U.S. Bankruptcy Court, 38 S. Scott Ave, Suite 100, Tucson, AZ 85701. Local Form 3003-3 (08/18) Order Setting Confirmation Hearing Page 2 1 2 3 4 5 6 7 8 9 Confirmation Hearing). 5. DEADLINE TO OBJECT TO DISCHARGE: The Confirmation Hearing is the deadline for any creditor to file a complaint objecting to the discharge of an individual debtor pursuant to 11 U.S.C. § 1141. 6. BALLOT REPORT: The Proponent shall file a report, consistent with Local Bankruptcy Rule 3018-1, no later than three (3) business days prior to the Confirmation Hearing. 7. SERVICE OF THIS ORDER, DISCLOSURE STATEMENT, PLAN AND BALLOT: Pursuant to Bankruptcy Rule 3017(d), the Proponent shall serve a copy 10 of this Order, the Plan, the Disclosure Statement (or approved summaries thereof), and a 11 Ballot (collectively, the “Plan Documents”) on: 12 13 14 15 16 17 18 19 20 a. All creditors; b. The United States trustee; and c. The Debtor, unless it is the Proponent. 8. TIMING OF SERVICE: Pursuant to Bankruptcy Rule 2002(b), the Plan Documents shall be served so that creditors have not less than twenty-eight (28) days after receipt (or, pursuant to Bankruptcy Rule 9006(f), thirty-one (31) days if the Plan Documents are served by mail) to file objections to confirmation and to vote on the Plan. 9. CERTIFICATE OF SERVICE: Promptly after serving the Plan Documents, the Proponent shall file with the Court a certificate or affidavit evidencing 21 such service. 22 23 24 25 26 27 28 10. PROCEDURE IF A PLAN OBJECTION IS FILED: If a party objects to confirmation of the Plan, the initial Confirmation Hearing will be a non-evidentiary hearing. If additional evidence or argument is required, beyond what the Proponent must present to comply with Section 11 below, the Court will set an additional hearing. 11. PROCEDURE IF NO PLAN OBJECTION IS FILED: If no party objects to confirmation of the Plan, the Court may confirm the Plan at the Confirmation Hearing if the Proponent presents sufficient evidence (e.g., witness testimony, Local Form 3003-3 (08/18) Order Setting Confirmation Hearing Page 3 declaration, or documents) to allow the Court to make findings required by Bankruptcy Code § 1129. DATED AND SIGNED ABOVE. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Local Form 3003-3 (08/18) Order Setting Confirmation Hearing Page 4