Local Rule 2015-2: Moneys of Chapter 11 Estates

LOCAL RULE 2015-2 Moneys of Chapter 11 Estates

(a) New Bank, Deposit, and Investment Accounts. For all moneys of the bankruptcy estate, immediately upon filing a chapter 11 petition, the debtor-in-possession shall close all bank, deposit, and investment accounts. The debtor-in-possession shall open and maintain a new general bank account in a federally insured depository. If the debtor has an ongoing business with employees, the debtor-in-possession shall similarly open and maintain a tax account, unless the Court deems it unnecessary. If the debtor maintained a separate payroll account immediately prior to filing, the debtor-in-possession shall similarly open and maintain a payroll account, unless the Court deems it unnecessary. The signature cards for the new accounts shall clearly indicate that the debtor is the "debtor-in-possession."

(b) Sales of Assets. Unless the Court orders otherwise, the net cash proceeds from the sales of assets pursuant to 11 U.S.C. § 363 shall be deposited in separate, interest-bearing blocked accounts at a federally insured depository. All such accounts shall bear the inscription "not to be disbursed or withdrawn except upon further order of the Bankruptcy Court."

(c) Insured Funds. Except with respect to moneys of the estate that are deposited or invested with an entity that is included on the U.S. Trustee's list of cooperating depositories or with a federally insured depository in an amount which does not exceed the federal insurance or guaranty, moneys of the estate in excess of the maximum FDIC insurance limit in an account shall be deposited or invested as provided in 11 U.S.C. § 345(b). If necessary, additional insured accounts shall be opened in different depositories so that any deposit shall not exceed the insured limits of the account.