Local Rule Rule 4001-2: Motion for Use of Cash Collateral or to Obtain Financing

Rule 4001-2 Motion for Use of Cash Collateral or to Obtain Financing

(a) Contents of the Motion. In addition to the requirements of F.R.Bankr.P. 4001(b)(1)(B) and F.R.Bankr.P. 4001(c)(1)(B), a motion for use of cash collateral under § 363(c)(2) or to obtain credit under § 364(c) or (d) must explicitly state 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," available on the court's website. When a 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) Motion to Approve Agreement. A motion for the entry of an order approving an agreement for the use of cash collateral or to obtain credit on an expedited basis may be granted without a hearing if the motion complies with F.R.Bankr.P. 4001(d)(1)(B) and if: (1) the proposed order is approved by all creditors who may have an interest in the cash collateral to be used or the credit to be extended, by the chairperson or attorney for each official committee and by the United States trustee; (2) the proposed 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 the date of the final hearing or the date that the order would become a final order; (3) the proposed order provides for a final hearing, the date and time for which will be filled in by the court when the proposed order is entered; (4) the proposed order provides that the debtor must, within 24 hours of its entry, serve a copy of the motion with its attachments and the entered order on all parties who are required to be served under F.R.Bankr.P. 4001(d); (5) the proposed order provides that: (A) the deadline to file an objection to the proposed order is 14 days from the entry of the order, except that an official committee may file objections within 14 days after it is served with the entered order; (B) if an objection is timely filed, the final hearing will be held; and (C) if no objection is timely filed, the interim or preliminary order may become a final order; and (6) the motion is accompanied by an affidavit or declaration of the debtor or a principal of the debtor stating the facts upon which the debtor relies in seeking the entry of the proposed order on an expedited basis and the amount of money needed to avoid immediate and irreparable harm.

(d) Interim Order on Expedited Basis. If a debtor files a motion for authority to use cash collateral or to obtain post-petition financing but the debtor's pre-petition secured creditors have not consented to the relief sought in the motion, the court may enter an interim order granting the relief requested on an expedited basis if: (1) the debtor has served a copy of the motion, a proposed order and a notice of the hearing on the motion on the non-consenting secured creditors in the manner set forth in Local Rule 9013-1; (2) the court has held a hearing on the motion at which the non-consenting secured creditors were given an opportunity to be heard; (3) the proposed order complies with each of the requirements of subparts (c)(2)-(c)(6) of this rule; and (4) the court makes a specific finding of fact that the protection offered to the non-consenting secured creditors is adequate and such adequate protection is incorporated into the proposed order.

(e) Effect of Interim Order. If the court enters an interim order under subpart (d) of this rule over the objection of a secured creditor or if a secured creditor does not appear at the hearing or object to the motion, such secured creditor retains the right to object to the interim order as provided in subpart (c)(5)(A) of this rule.

(f) Reducing or Enlarging Time for Objections. On timely motion, the court may enlarge or reduce the time within which an objection must be filed, except that the court may not reduce the time within which a non-consenting secured creditor must file an objection under subpart (c)(5)(A) of this rule. In its discretion, the court may schedule a hearing on the debtor's motion at any time, with such notice as it deems appropriate, provided such notice and hearing are consistent with subpart (d) of this rule.