INVESTMENT OF ESTATE FUNDS

(a) Notice. (1) Service. The trustee or debtor in possession must give not less than 14 days written notice of a proposed investment of bankruptcy estate funds in a Designated Fund to the United States trustee, the debtor (if a trustee has been appointed), the creditors’ committee or the 20 largest unsecured creditors if no committee has been appointed, any other committee appointed in the case, counsel for any of the foregoing, and any other party in interest entitled to notice under FRBP 2002, unless the court for cause shown sets a hearing on shortened notice or otherwise modifies or limits notice pursuant to a motion under LBR 9075-1. (2) Time Period for Response.

The notice must state that any objection or request for hearing must be filed and served not more than 14 days after service of the notice, unless the notice specifies a longer period, or unless otherwise ordered by the court. (3) When Order Not Needed. If an objection and request for hearing is not filed and served timely, the trustee or debtor in possession may proceed with the investment. An order is not required nor will an order be entered under this rule.

(b) Objection and Request for Hearing. If a timely objection and request for hearing is filed and served, the trustee or debtor in possession must comply with LBR 9013-1(o)(4). (c) Designated Fund. For purposes of this rule, a “Designated Fund” is an open-end management investment company registered under the Investment Company Act of 1940 and regulated as a “money market fund” pursuant to Rule 2a-7 under the Investment Company Act of 1940, that: (1) Invests exclusively in United States Treasury bills and United States Treasury Notes owned directly or through repurchase agreements; (2) Has received the highest money market fund rating from a nationally recognized statistical rating organization, such as Standard & Poor’s or Moody’s; (3) Has agreed to redeem fund shares in cash, with payment being made no later than the business day following a redemption request by a shareholder, except in the event of an unscheduled closing of Federal Reserve Banks or the New York Stock Exchange; and (4) Has adopted a policy that it will notify its shareholders 60 days prior to any change in its investment and redemption policies under subsections (c)(1) and (3) of this rule.

82 LBR 6004-1