Local Rule 4001-2: Authority to Use Cash Collateral.

Rule 4001-2. Authority to Use Cash Collateral.

(a) Motion for authority to use cash collateral (regular notice). A motion for authority to use cash collateral shall comply with Fed.R.Bankr.P. 4001(b)(1)(B) and shall conform to Appendix 4B. Unless preliminary authority is sought pursuant to Fed.R.Bankr.P. 4001(b)(2), the motion and a notice of motion shall be served on parties in interest not electronically served. The notice shall conform to Bankr. D.S.D. R. 2002-1(a) and shall set forth a last date (month, day, year) for filing an objection or other response that is 14 days after service of the motion and the notice of motion.

(b) Preliminary hearing. A request for a preliminary hearing on a motion for authority to use cash collateral pursuant to Fed.R.Bankr.P. 4001(b)(2) shall be reflected in the title of the motion by the addition of the phrase "and Request for Preliminary Hearing." The motion for authority to use cash collateral and request for a preliminary hearing shall conform to Appendix 4C and shall include, in a separate paragraph:

(1) a specific statement of the immediate and irreparable harm the estate will suffer if the debtor is not permitted to use cash collateral pending a final hearing on the motion;

(2) the specific amount of cash collateral needed during the preliminary notice period following service of the motion and the notice of motion; and

(3) the source(s) of the cash collateral and an offer of adequate protection, if different than the source(s) or the offer set forth pursuant to Fed.R.Bankr.P. 4001(b)(1)(B) and paragraph (a) above.

If the request for a preliminary hearing is granted, the Court's order will set deadlines for responses and, if necessary, a preliminary hearing. The order will constitute the notice of the motion and shall be served by the movant as directed by the Court in the order.

(c) Agreement regarding authority to use cash collateral following a motion for such authority. If the debtor and all parties who timely objected to a properly filed and served motion for authority to use cash collateral reach an agreement regarding such relief that does not exceed the scope of the original motion, the agreement, if reduced to writing, shall be signed and filed with the Court, and the parties shall submit pursuant to Bankr. D.S.D. R. 9072-1(a) an agreed proposed order. Upon entry of the agreed order, any previously scheduled hearing on the motion will be deemed moot. If the agreement exceeds the scope of the motion, the agreement shall be noticed for objections in compliance with Bankr. D.S.D. R. 9019-1(b).

(d) Agreement regarding use of cash collateral when a motion for authority to use cash collateral has not been filed. If parties in interest reach an agreement regarding the use of cash collateral before a motion for such relief has been filed, a motion to approve the agreement and a notice of motion shall be served on parties in interest not electronically served. If the agreement has been reduced to writing, a copy of the signed agreement shall be attached to the motion. The notice shall conform to Bankr. D.S.D. R. 2002-1(a) and shall set forth a last date (month, day, year) for filing an objection or other response that is 14 days after service of the motion and the notice of motion.

(e) Proposed order. A proposed order granting preliminary authority to use cash collateral shall conform to Appendix 4D. A proposed order granting final authority to use cash collateral shall conform to Appendix 4E.

REFERENCES: 11 U.S.C. § 363; Fed.Rs.Bankr.P. 2002(a)(6), 2002(c)(1), and 4001.

Practice Pointer: If any party is served by mail or under the provisions of Fed.R.Civ.P. 5(b)(2)(D) [leave with clerk] or (F) [other means consented to], the notice periods stated above shall be increased three days pursuant to Fed.R.Bankr.P. 9006(f).