Procedure on Request for Relief from the Automatic Stay of 11 U.S.C. § 362(a).

(a) Notice and Service. A motion seeking relief from the automatic stay under 11 U.S.C. § 362 must be accompanied by a notice of hearing substantially conforming to Local Form 106A, and be served as follows: (i) Service Generally. Except as provided in subsection (a)(ii) of this Local Rule, the motion and notice must be served on the parties listed in Local Rule 2002-1(b), including any party with an interest in the property subject to the motion. (ii) Motion Related to Personal Injury or Wrongful Death Action in a Chapter 11 Case.

A motion for relief from the automatic stay in a chapter 11 case to pursue a personal injury or wrongful death action need only be served on counsel for the debtor or trustee, counsel for any official committee, counsel for any lender providing postpetition financing or use of cash collateral, and any other party directly affected by the relief requested in the motion. (b) Scheduling. (i) Chapter 11 or 15 Case. In a chapter 11 or 15 case, the movant must obtain a hearing date from chambers before filing and serving the motion and notice or schedule the motion for the next omnibus hearing date in the case that provides sufficient notice under Local Rule 9006-1(c).

If the omnibus hearing date is not within 30 days of when the motion is filed, then the movant is deemed to have consented to the stay remaining in effect until the motion is heard. If the movant consents to continuing the hearing on the motion, then the movant is deemed to consent to the stay remaining in effect until the adjourned hearing. (ii) Chapter 7 or 13 Case. In a chapter 7 or 13 case, the movant must obtain a hearing date from the Court’s website before filing and serving the motion and notice.

(c) Supporting Documentation for Motion Related to Exercise of Remedies Against Collateral. The following requirements apply to a motion for relief from stay to exercise remedies against collateral: (i) The movant must file the following documents with the motion: (A) An affidavit and supporting exhibits containing the following data, as applicable: (1) (2) True copies of any note, bond, mortgage, security agreement, financing statements, or assignment, and every other document the movant will rely on at the hearing; A statement of the amount due to the movant, including a breakdown of the following items: 45 (a) Unpaid principal; (b) Accrued interest to and from specific dates; (c) Late charges to and from specific dates; (d) Attorneys’ fees and expenses; (e) (f) Advances for taxes, insurance, and the like; Unearned interest; and (g) Any other charges. (3) A breakdown of current postpetition arrears setting forth the unpaid loan or monthly mortgage payments and any applicable late charges; (4) A per diem interest factor; and (5) Movant’s good faith estimate of the collateral’s value as of the petition date and the date of the motion. (ii) A party opposing the motion must file and serve on the movant and other parties required to be served under this Local Rule the following documents at least 7 days before the hearing: (A) Its response to the motion: (B) An affidavit stating the responding party’s good faith estimate of (1) the amount due to the movant and (2) the collateral’s value as of the petition date and the date of the motion; and (C) A statement as to how the movant is adequately protected if the stay is not lifted.

(iii) The hearing date in the notice of the motion will be a preliminary hearing at which the Court may (A) hear oral argument, (B) determine whether an evidentiary or other final hearing is necessary, (C) set a date by which the parties must exchange further supporting documentation, (D) set a date by which the parties must produce the report of any appraiser whose testimony is to be presented at the final hearing and (E) set a date and time for a final hearing (d) Attorney Conference. The parties’ attorneys must confer before the hearing regarding the issues raised by the motion to determine whether a consensual order may be entered, and, if not, then to attempt to agree to stipulated facts, such as the property’s value and the extent, priority, and validity of any security interest. 46 Rule 4001-2 Cash Collateral and Financing Orders. (a) Motions.

A motion to approve use of cash collateral under section 363 of the Code or postpetition financing under section 364 of the Code must meet the following requirements: (i) Form of Motion. The motion must: (A) provide a summary of the essential terms of the proposed use of cash collateral or financing, and identify where those terms appear in the proposed form of order, cash collateral stipulation or loan agreement; (B) identify whether and where provisions of the type listed below appear in the proposed form of order, cash collateral stipulation, or loan agreement; and (C) for provisions implicating subsections N through X below, explain why each provision is justified under the circumstances: (A) (B) The interim and final amounts of (1) cash collateral the debtor seeks permission to use and (2) credit the debtor seeks to obtain under the financing, including the committed amount of the financing and the amount of new money actually available to the debtor; Pricing and other economic terms, including, for example, letter of credit fees, commitment fees, unused line fees, exit fees, work fees, and any other fees. If the debtor seeks to file any terms under seal, then the terms should be omitted from the motion and instead disclosed in a separate document filed under seal consistent with Local Rule 9018-1, and the motion should state that the fees are disclosed in the separate document that is being filed under seal; (C) Any provision that specifically limits the court’s power or discretion to enter future orders in the case; (D) Any provision authorizing use of cash collateral or loan proceeds to fund nondebtor affiliates, and the approximate amount of the funding; (E) Material conditions to closing and borrowing, including budget provisions; (F) Any carve-outs from liens or superpriority claims, including the material terms of any professional fee carve-out; (G) Any provision that provides for postpetition liens on unencumbered assets, including the identification of the assets; (H) Any provision that establishes sale or plan milestones; (I) Any prepayment penalty or other provision that impacts the debtor’s right, cost, or ability to repay the financing in full during the course of the chapter 11 case; 47 (J) In jointly administered cases, any provision that governs joint liability of the debtors, including any provision that causes one debtor to become liable for the prepetition obligations of another; (K) Any provision that requires the debtor to pay a secured party’s expenses and attorneys’ fees in connection with the use of cash collateral or financing, without notice or review by the U.S. Trustee, any official committee or, upon objection, the Court; (L) Any provision that prohibits the use of estate funds to investigate the liens and claims of the prepetition lender; (M) Any termination or default provisions concerning the use of cash collateral or the availability of credit; (N) Any provision that grants cross-collateralization, elevates prepetition debt to administrative expense or higher priority status, or secures prepetition debt with liens on postpetition assets; (O) Any provision that applies the proceeds of the financing to pay, in whole or in part, prepetition debt, or otherwise has the effect of converting or “rolling up” prepetition debt into postpetition debt; (P) (Q) (R) (S) Provisions that immediately prime valid, perfected, and unavoidable prepetition liens or liens perfected under section 546(b) of the Code, if the liens being primed are senior to the lender’s prepetition liens, unless the affected secured creditor has affirmatively consented to the priming. If the provision provides for priming only after a subsequent hearing on notice, then the motion must describe the notice to be provided to affected secured creditors; Provisions or findings of fact that (i) bind the estate or other parties in interest as to the validity, perfection, or amount of a prepetition claim or lien or that waive claims against a prepetition creditor without first giving parties in interest, including any official committee, at least 75 days from the entry of the first interim order to commence a challenge or (ii) limit the Court’s ability to grant relief upon a successful challenge; Provisions that immediately approve all terms and conditions of an underlying loan agreement, except for provisions that merely provide the debtor is authorized to enter into and be bound by the terms and conditions of the loan agreement; Provisions that modify or terminate the automatic stay or permit the lender to enforce remedies following an event of default that do not require at least 5 days’ written notice to the debtor or trustee, the U.S. Trustee, and any official committee before effective; 48 (T) (U) (V) (W) (X) Provisions that seek to limit what parties in interest other than the debtor may raise at any emergency hearing scheduled during the period set forth in subsection (S) above; Provisions that immediately grant the prepetition secured creditor liens on the debtor’s claims and causes of action arising under sections 544, 545, 547, and 548 of the Code or their proceeds; Provisions that immediately waive the debtor’s rights under section 506(c) of the Code; Provisions that immediately seek to affect the Court’s power to consider the equities of the case doctrine under section 552(b)(1) of the Code; and Provisions that immediately shield the lender from the equitable doctrine of “marshalling” or any similar doctrine.

(ii) Operative Documents and Defined Terms. The motion must attach any cash collateral stipulation, postpetition loan agreement, or other document that provides material terms of the debtor’s use of cash collateral or postpetition financing. Defined terms used in the motion must be defined in the motion or by reference to the specific location where the term is defined in the attached documents. (iii) Budget.

If the debtor’s use of cash collateral or access to credit is subject to a budget, then (A) the budget must be attached to the motion, (B) the motion must state whether the debtor believes the budget will be adequate, considering all available assets, to pay all administrative expenses due or accruing during the period covered by the financing and the budget, and (C) the budget must detail the sources and uses of cash needed for ongoing operations on a weekly basis during the budget period. (b) (c) Limitations on Interim Relief. Interim relief under the motion is limited to what is necessary to avoid immediate and irreparable harm to the estate pending a final hearing. Absent extraordinary circumstances, the Court will not approve an interim order that includes the provisions identified in Local Rule 4001-2(a)(i)(P)-(X).

Final Orders. A final order may be entered only after notice and a hearing under Fed. R. Bankr. P. 4001 and Local Rule 2002-1(b). The final hearing ordinarily will be held at least 7 days after the organizational meeting for an official committee of unsecured creditors. 49 Rule 4001-3 Investment in Money Market Funds.

There is “cause” for relief from the requirements of 11 U.S.C. § 345(b) if money of the estate is invested in an open-end management investment company, registered under the Investment Company Act of 1940, that is regulated as a “money market fund” pursuant to Rule 2a-7 under the Investment Company Act of 1940 so long as the debtor has filed with the Court (i) a statement identifying the fund, and (ii) the fund’s certification—including the fund’s currently effective prospectus filed with the SEC—that the fund: (a) (b) (c) (d) Invests exclusively in U.S. Treasury bills and U.S. Treasury Notes owned directly or through repurchase agreements; Has received the highest money market fund rating from a nationally recognized statistical rating organization, such as Standard & Poor’s or Moody’s; 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 Has adopted a policy that it will notify its shareholders 60 days before any change in its investment or redemption policies under (a) and (c) above. 50 Rule 4001-4 Procedures on Motion for Continuation or Imposition of Automatic Stay. (a) Contents of Motion. A motion for continuation of the automatic stay under 11 U.S.C. § 362(c)(3)(B), or a request for the imposition of a stay under 11 U.S.C. § 362(c)(4)(B), is a contested matter commenced by filing and serving a motion under Fed. R. Bankr. P. 9014.

The motion must be accompanied by a notice setting an objection deadline and hearing date consistent with Local Rule 9006-1(c), unless otherwise provided in the presiding Judge’s chambers procedures. The motion must state the specific facts supporting the requested relief, verified by an affidavit based on the affiant’s personal knowledge. No other relief may be sought in the motion, but additional relief may be sought in a separate motion filed under Fed. R. Bankr. P. 9014 or a complaint filed under Fed. R. Bankr. P. 7001. (b) Notice.

In addition to any applicable notice requirements under the Code, the Fed. R. Bankr. P., and these Local Rules, the movant must serve a copy of the motion and notice on (i) the parties and counsel identified in Local Rule 1007-2(c) and (ii) any other party against whom the stay is proposed to be effective. 51 Rule 4002-1 Duties of Debtor under 11 U.S.C. § 521 in Chapter 7 and 13 Cases. (a) (b) (c) (d) No later than the first date set for the meeting of creditors under 11 U.S.C. § 341, the debtor must deliver to the interim trustee or the standing Chapter 13 Trustee, as applicable, all books, records and papers, including appraisals, relating to property of the estate, as well as copies of recorded documents, e.g., deeds and mortgages. No later than the first date set for the meeting of creditors under 11 U.S.C. § 341, the debtor must advise in writing the interim trustee or the standing Chapter 13 Trustee, as applicable, of the payoff amounts on all secured debts.

Immediately upon the entry of an order for relief in a chapter 7 or 13 case, the debtor must give written notice of the order for relief to any court or tribunal where an action is pending against the debtor and to the parties and counsel involved in that action. If an action is commenced after the date of the order for relief, then the debtor must give similar written notice to the court or tribunal and to all parties and counsel involved. Immediately upon the entry of an order for relief, the debtor must give written notice of the order for relief to any creditor with a garnishment order, any garnishee defendant (other than the debtor’s employer), and any creditor who the debtor anticipates may seek a garnishment order. 52 Rule 4003-1 Exemptions.

(a) (b) Amendment to Claim of Exemptions. The debtor must file and serve on the trustee, the U.S. Trustee, and all creditors any amendment to a claim of exemptions under Fed. R. Bankr. P. 1009 and 4003. Automatic Extension of Time to File Objections to Claim of Exemptions in Event of Amendment to Schedules to Add a Creditor. If the debtor’s Schedules are amended to add a creditor, then the affected creditor may object to the debtor’s claim of exemptions by the later (i) the deadline provided in Fed. R. Bankr. P. 4003 and (ii) 28 days after the amendment is filed and served on the affected creditor.

53 Rule 4004-1 Automatic Extension of Time to File Complaint Objecting to Discharge in Event of Amendment. If the debtor’s Schedules are amended to add a creditor, then the affected creditor may file a complaint or motion objecting to the debtor’s discharge by the later of (a) the deadline provided in Fed. R. Bankr. P. 4004(a) and (b) 60 days after the amendment is filed and served on the affected creditor. If the section 341 meeting of creditors is continued or rescheduled, then the time to file a complaint or motion objecting to discharge is the later of (y) the deadline provided in Fed. R. Bankr. P. 4004(a) and (z) 28 days after the section 341 meeting is concluded. The extensions provided in this paragraph are deemed to have been granted for cause without the need for a motion and hearing.

54 Rule 4007-1 Automatic Extension of Time to File Complaint to Determine Dischargeability of a Debt in Event of Amendment. If the debtor’s Schedules are amended to add a creditor, then the affected creditor may file a complaint to obtain a determination of the dischargeability of any debt by the later of (a) the deadline provided in Fed. R. Bankr. P. 4007 and (b) 60 days after the amendment is filed and served on the affected creditor. If the section 341 meeting of creditors is continued or rescheduled, then the time to file a complaint to obtain a determination of the dischargeability of any debt is the later of (y) the deadline provided in Fed. R. Bankr. P. 4007 and (z) 28 days after the section 341 meeting is concluded. The extensions provided in this paragraph are deemed to have been granted for cause without the need for a motion and hearing.

55 PART V. COURTS AND CLERKS