(a) General. The requirements of LBR 9013-1 through LBR 9013-4 apply to a motion to obtain credit or to approve the use of cash collateral, debtor in possession financing, and/or cash management under 11 U.S.C. §§ 363 or 364 (collectively, “Financing Motion”), except as provided by this rule.
(b) Provisions to be Identified. To the extent not otherwise required by FRBP 4001(b)(1)(B) and (c)(1)(B), a Financing Motion must identify whether the proposed form of order and/or underlying cash collateral stipulation or loan agreement contains any provision that:
(1) Grants 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);
(2) Binds the estate or all parties in interest with respect to the validity, perfection, or
amount of the secured creditor’s prepetition lien or debt or the waiver of claims
against the secured creditor;
(3) Waives or limits the estate’s rights under 11 U.S.C. § 506(c);
(4) Grants to the prepetition secured creditor liens on the debtor’s claims and causes
of action arising under 11 U.S.C. §§ 544, 545, 547, 548, or 549;
(5) Deems prepetition secured debt to be postpetition debt or that use postpetition
loans from a prepetition secured creditor to pay part or all of that secured creditor’s
prepetition debt, other than as provided in 11 U.S.C. § 552(b);
(6) Provides disparate treatment for the professionals retained by a creditors’
committee from that provided for the professionals retained by the debtor with
respect to a professional fee carve out; or
(7) Primes any secured lien. If an order is sought to prime a lien, the Financing
Motion must:
(A) Identify the location of any such provision in the proposed form of order,
cash collateral stipulation, and/or loan agreement; and
(B) Contain specific justification for the priming of the lien.
(c) Summary of Essential Terms. The Financing Motion must include a summary of the essential terms of the proposed credit, use of cash collateral, or debtor in possession, financing (e.g., the interim borrowing limit, the maximum borrowing available on a final basis, borrowing conditions, interest rate, maturity dates, events of default, use of funds limitations, and protections afforded under 11 U.S.C. §§ 363 and 364).
(d) Use of Form for Cash Collateral and/or Debtor in Possession Financing Stipulations. Each Financing Motion requesting approval of a stipulation for credit, use of cash collateral, or debtor in possession financing must be accompanied by court-approved form F 4001-2, Statement Pursuant to Local Bankruptcy Rule 4001-2, or a statement consistent with court-approved form F 4001-2.
(e) Interim Relief. The court may grant interim relief to prevent immediate and irreparable harm to the estate pending a final hearing. In the absence of extraordinary circumstances, the court will not approve an interim order that includes any of the provisions described in subsection (b)(1)-(7) of this rule.
(f) Final Orders. A final order will be entered only after notice and a hearing pursuant to FRBP 4001(b). Ordinarily, the final hearing will be held at least 14 days after the
appointment of the creditors’ committee contemplated by 11 U.S.C. § 1102.
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