Motions for Use of Cash Collateral or to Obtain Credit

(a) Contents of the Motion, Adequate Protection and Valuation of Secured Interests. In addition to the requirements of Fed. R. Bankr. P. 4001(b)(1)(B) and 4001(c)(1)(B), a motion for use of cash collateral under § 363(c) or to obtain credit under § 364(c) or (d) must explicitly state the adequate protection offered the creditor and the moving party’s position as to the value of each of the secured interests to be protected. Pertinent appraisals and projections must be summarized in the motion. (b) Cover Sheet.

(1) The motion must be filed with a completed form “Cover Sheet for Motion to Use Cash Collateral or to Obtain Financing,” which is appended to these Rules as Exhibit 9. If a completed cover sheet is not filed, the Court may enter an order striking or denying the motion without prejudice to the movant’s right to re-file the motion in compliance with this Rule. (2) If any proposed order granting interim or final relief would alter any information given in the initial cover sheet, then the movant must file an amended cover sheet concurrently with the submission of the proposed order indicating where appropriate all changes from the original proposed order. (c) Expedited Motion.

If a debtor files a motion for entry of an order approving an agreement to use cash collateral or to obtain credit on an expedited basis, the Court may enter the order without a hearing if: 19 (1) the order is approved by: (A) all creditors who have an interest in the cash collateral to be used, (B) any entity extending the requested credit, (C) the chairperson or attorney for each official committee (if any), and (D) the United States Trustee; (2) the order provides for the debtor to use cash collateral or to obtain credit in a maximum specified dollar amount necessary to avoid immediate and irreparable harm only until the earlier of: (A) a final hearing, or (B) the date the order becomes a final order; (3) the order provides for a final hearing, to be scheduled by the Court when the order is entered; (4) the order provides that the debtor will serve a copy of the motion with its attachments and the order on all parties who are required to be served under Fed. R. Bankr. P. 4001(d); (5) the order provides that: (A) objections to the order shall be filed within 14 days from the service of the order, except that an unsecured creditors’ committee may file an objection within 14 days of its formation; (B) on the filing of an objection, a final hearing will be held; and (C) if no objections are timely filed, an order may become final; and (6) the motion is accompanied by an affidavit or a declaration of the debtor, or a principal of the debtor, stating the facts on which the debtor relies in seeking the entry of the order on an expedited basis and the amount of money needed to avoid immediate and irreparable harm. (d) Enlargement or Reduction of Time for Objecting; Hearing. On timely motion, the Court may enlarge or reduce the time within which an objection must be filed. The Court may schedule a hearing on the debtor’s motion at any time with such notice as it deems appropriate.

20 LBR 4001-3: Motions for Approval of Agreed Relief (a) Agreements Subject to this Rule. A party may use the notice and opportunity procedure of LBR 9013(c) to request Court approval of an agreement to: (1) provide adequate protection; (2) modify or terminate the stay under § 362 of the Code; (3) use cash collateral; or (4) create a lien senior or equal to an entity’s lien or interest in property of the estate. Any motion under this subsection must be accompanied by a copy of the agreement. (b) Service of Motion.

The moving party must serve the notice, motion, agreement, and proposed order on the following parties: (1) In a Chapter 7 Case - the parties to the agreement, the Chapter 7 trustee, the United States Trustee, and any entity that claims an interest in the subject property. (2) In a Chapter 11 Case - the parties to the agreement; any creditors’ or equity security holders’ committee appointed under § 1102 of the Code and its authorized agent, or if no creditors’ committee has been appointed, on the 20 largest creditors holding unsecured claims; the United States Trustee; and any other entity the Court directs. (3) In a Chapter 12 Case - the parties to the agreement, the Chapter 12 trustee, the United States Trustee, and any entity that claims an interest in the subject property. (4) In a Chapter 13 Case - the parties to the agreement, the Chapter 13 trustee, the United States Trustee, and any entity that claims an interest in the subject property.

(c) Stipulations. Parties may obtain relief from the automatic stay under § 362 of the Code by stipulation provided: (1) A stipulation and proposed order is filed and approved in writing by: (A) In a Chapter 7, 12 or 13 Case - the debtor, the party seeking the relief from stay, the trustee, and every entity that claims an interest in the subject property (including any co-owner). (B) In a Chapter 11 Case - the debtor-in-possession (or Chapter 11 trustee), every entity that claims an interest in the subject property (including any co-owner), and the authorized representative for every official committee appointed under § 1102 of the Code. In a Chapter 11 case in which an official committee has not been appointed, this subsection does not apply.

(2) The stipulation conspicuously recites that every entity claiming an interest in the subject property (including any co-owner) and whose approval is otherwise required under subsection (c)(1) has signed the stipulation. (3) Copies of the stipulation filed under subsection (c)(1) and order approving the same shall be served on the United States Trustee. 21 (4) With respect to a stipulation filed under subsection (c)(1), the Court, by signing the proposed order, is deemed to direct that the procedures prescribed in Fed. R. Bankr. P. 4001(d)(1), (2) and (3) shall not apply and the stipulation may be approved without further notice.