Local Rule 4001-2: FINANCING MOTIONS AND ORDERS
Bankr. D. Utah — General rule
RULE 4001-2 FINANCING MOTIONS AND ORDERS
(a) Financing Motions.
(1) Generally. This Local Rule pertains to motions requesting Court approval of the use of cash collateral and postpetition financing ("Financing Motions") in nonconsumer cases.
(b) Content of Financing Motions.
(1) Local Form 4001-2. Movants should attach an exhibit in the style of Local Form 4001-2 to their Financing Motion.
(2) Extraordinary Relief. The following terms, each constituting extraordinary relief, must be clearly identified, if applicable, in a Financing Motion:
(A) Cross-collateralization Provisions. Provisions that grant cross-collateralization protection (other than replacement liens or other adequate protection) to the prepetition secured creditors (i.e., clauses that secure prepetition debt by postpetition assets in which the secured creditor would not otherwise have a security interest by virtue of its prepetition security agreement or applicable law);
(B) Binding Lien Statements. Provisions or findings of fact that bind the estate or all parties in interest with respect to the validity, perfection or amount of a secured creditor's prepetition lien or debt or the waiver of claims against the secured creditor without giving parties in interest at least 75 days from the entry of the order and the creditors' committee, if formed, at least 60 days from the date of its formation to investigate such matters;
(C) Waiver. Provisions that seek to waive, without notice, whatever rights the estate may have under 11 U.S.C. § 552(b);
(D) Immediate Grant of Liens. Provisions that immediately grant liens on claims or proceeds related to causes of action arising under 11 U.S.C. §§ 544; 545; 547; 548; and 549;
(E) Special Treatment of Prepetition Creditors. Provisions that deem prepetition debt to be postpetition debt or that use postpetition loans from a prepetition creditor to pay part or all of that creditor's prepetition debt, other than as provided in 11 U.S.C. § 552(b);
(F) Disparate Treatment for Retained Professionals. Provisions that provide disparate treatment for professionals retained by a creditors' committee from that provided for professionals retained by the debtor; and
(G) Nonconsensual Lien Priming. Provisions that prime any secured lien, without the consent of that lienor.
(c) Interim Relief.
(1) Extraordinary Relief. In the absence of extraordinary circumstances, the court will not approve interim financing orders that include any of the provisions in section (b)(2)(A) through (b)(2)(G) of this Local Rule.
(d) Final Order.
(1) Notice and Hearing. A final order on a Financing Motion will be entered only after notice and a hearing under Fed. R. Bankr. P. 2002 and 4001 and Local Rules 2002-1; 9013-1; and 9036-1.
(2) Timing of Final Hearing. If a committee under 11 U.S.C. § 1102 is appointed, the final hearing will ordinarily be held at least 14 days after the committee's initial meeting.