Common use of Debtor-in-Possession Clause in Contracts

Debtor-in-Possession. Multiple deposit accounts of a single chapter 11 debtor in possession (“Debtor in Possession”) bankruptcy case are to be combined for purposes of computing whether Bankruptcy Funds exceed the FDIC insurance limit. Chapter 7 Trustee, Chapter 11, 12, or 00 Xxxxxxx Xxxxxxxxx Xx a Case by Case Basis, Examiner or Custodian - A chapter 7 trustee, a chapter 11, 12, or 13 trustee appointed on a case by case basis, an examiner, or a custodian (each referred to herein as a “Trustee” and, collectively, as “Trustees”) shall be treated as a separate depositor for each case if the formal name on the deposit account refers to a separate case. For example, “Xxx Xxxxx, Trustee for the Estate of XYZ Corporation,” is a different depositor than “Xxx Xxxxx, Trustee for the Estate of ABC Corporation” and these accounts are not combined for purposes of computing whether Bankruptcy Funds exceed the FDIC insurance limit. 1Chapter 12 or 13 Standing Trustee - Bankruptcy Funds on deposit in chapter 12 or 13 standing trustee (“Standing Trustee”) accounts labeled “expense,” “payroll,” or “operating” are to be aggregated for each Standing Trustee in computing funds which exceed the FDIC insurance limit. Bankruptcy Funds on deposit in Standing Trustee accounts marked “trust account” or “trustee,” in which commingled estate funds are deposited, shall be insured up to $250,000 for each debtor’s estate pursuant to 12 C.F.R. § 330.13(c). 1In order to determine compliance with this Agreement, Depository shall furnish to UST at the address shown in paragraph 21: 1A quarterly summary report showing: (1) the total amount of month-end ledger balance of Bankruptcy Funds on deposit; (2) the market value of any required Pledged Securities on deposit at the Federal Reserve Board, or the amount of any required Surety Bond coverage; and (3) a calculation of any required ATBC (“Quarterly Summary Report”). The Quarterly Summary Report is due within 15 calendar days following the end of each calendar quarter. 1A quarterly report of Bankruptcy Accounts, by judicial district, identifying each account, including but not limited to: checking accounts, savings accounts, certificates of deposit, money market accounts, and collateral accounts; the account name and number; the bankruptcy case number and chapter number; the end of month ledger balance at the end of the calendar quarter, and the amount in excess of the FDIC insurance limit, sorting and subtotaling accounts by Trustee, Standing Trustee, or Debtor in Possession, (“Quarterly Bankruptcy Account Report”). The Quarterly Bankruptcy Account Reports are required even though Depository may not carry any active accounts into which Bankruptcy Funds have been deposited. All open deposit accounts must be listed, even if the account balance is zero. The Quarterly Bankruptcy Account Reports shall be submitted to UST within 15 calendar days following the end of each calendar quarter. 1In the event Depository fails to pay Bankruptcy Funds which are on deposit in accordance with the terms of the agreement with the depositor after two days’ notice of UST’s intention to invoke this paragraph; or in the event of insolvency of the Depository; or if a receiver, conservator, liquidator, or any other officer is appointed for the purpose of terminating the business of Depository; or should Depository fail or suspend active operations, all Bankruptcy Funds on deposit with Depository shall become due and payable immediately, and UST shall have the right to seek recourse against the Surety Bond or unilaterally demand turnover and take actual or constructive possession of all Pledged Securities, as applicable, and without notice to the Depository. All Surety Bonds, Pledged Securities, and the proceeds thereof which come into the possession of UST shall be paid to depositors or held by the UST in trust for depositors, and any amounts which are in excess of the amount needed to satisfy Depository’s obligations to depositors shall be returned to Depository or its successor in interest, after deducting any fees and costs necessary to enforce this Agreement and damages or deficiencies caused by default under this Agreement. 1Depository shall not provide favorable treatment to a trustee or employees of a trustee, either personally or on non-trustee related business, because of the Bankruptcy Accounts. Favorable treatment includes providing any valuable consideration not provided to all other personal or businesses Depository customers. Favorable treatment does not include providing valuable consideration for use in trustee related business. 1Upon presentation of a release signed by the Trustee, Standing Trustee, or Debtor in Possession, Depository agrees to provide to the UST any and all information or pertaining to that fiduciary’s Bankruptcy Accounts. That information includes, but is not limited to, copies of statements, deposit slips, checks and account agreements for all Bankruptcy Accounts maintained by Trustee, Standing Trustee, or Debtor in Possession at Depository. 1Upon presentation of an order of the court or a consent signed by the Trustee, Standing Trustee, or Debtor in Possession, Depository agrees to place a hold on any Bankruptcy Accounts maintained by that fiduciary, thereby blocking all withdrawals and payments of any kind therefrom, until notified in writing by UST that the hold is to be released by Depository, or until the hold is released by court order. 1Depository shall caption bank statements, and to the extent provided by Depository, deposit slips and check stock (collectively referred to as the “Deposit Account Records”), for Bankruptcy Accounts as follows:

Debtor-in-Possession. Multiple deposit accounts of a single chapter 11 debtor in possession (“Debtor in Possession”) bankruptcy case are to be combined for purposes of computing whether Bankruptcy Funds exceed the FDIC insurance limit. Chapter 7 Trustee, Chapter 11, 12, or 00 Xxxxxxx Xxxxxxxxx Xx a Case by Case Basis, Examiner or Custodian - A chapter 7 trustee, a chapter 11, 12, or 13 trustee appointed on a case by case basis, an examiner, or a custodian (each referred to herein as a “Trustee” and, collectively, as “Trustees”) shall be treated as a separate depositor for each case if the formal name on the deposit account refers to a separate case. For example, “Xxx Xxxxx, Trustee for the Estate of XYZ Corporation,” is a different depositor than “Xxx Xxxxx, Trustee for the Estate of ABC Corporation” and these accounts are not combined for purposes of computing whether Bankruptcy Funds exceed the FDIC insurance limit. 1Chapter Chapter 12 or 13 Standing Trustee - Bankruptcy Funds on deposit in chapter 12 or 13 standing trustee (“Standing Trustee”) accounts labeled “expense,” “payroll,” or “operating” are to be aggregated for each Standing Trustee in computing funds which exceed the FDIC insurance limit. Bankruptcy Funds on deposit in Standing Trustee accounts marked “trust account” or “trustee,” in which commingled estate funds are deposited, shall be insured up to $250,000 for each debtor’s estate pursuant to 12 C.F.R. § 330.13(c). 1In In order to determine compliance with this Agreement, Depository shall furnish to UST at the address shown in paragraph 21: 1A A quarterly summary report showing: (1) the total amount of month-end ledger balance of Bankruptcy Funds on deposit; (2) the market value of any required Pledged Securities on deposit at the Federal Reserve Board, or the amount of any required Surety Bond coverage; and (3) a calculation of any required ATBC (“Quarterly Summary Report”). The Quarterly Summary Report is due within 15 calendar days following the end of each calendar quarter. 1A A quarterly report of Bankruptcy Accounts, by judicial district, identifying each account, including but not limited to: checking accounts, savings accounts, certificates of deposit, money market accounts, and collateral accounts; the account name and number; the bankruptcy case number and chapter number; the end of month ledger balance at the end of the calendar quarter, and the amount in excess of the FDIC insurance limit, sorting and subtotaling accounts by Trustee, Standing Trustee, or Debtor in Possession, (“Quarterly Bankruptcy Account Report”). The Quarterly Bankruptcy Account Reports are required even though Depository may not carry any active accounts into which Bankruptcy Funds have been deposited. All open deposit accounts must be listed, even if the account balance is zero. The Quarterly Bankruptcy Account Reports shall be submitted to UST within 15 calendar days following the end of each calendar quarter. 1In In the event Depository fails to pay Bankruptcy Funds which are on deposit in accordance with the terms of the agreement with the depositor after two days’ notice of UST’s intention to invoke this paragraph; or in the event of insolvency of the Depository; or if a receiver, conservator, liquidator, or any other officer is appointed for the purpose of terminating the business of Depository; or should Depository fail or suspend active operations, all Bankruptcy Funds on deposit with Depository shall become due and payable immediately, and UST shall have the right to seek recourse against the Surety Bond or unilaterally demand turnover and take actual or constructive possession of all Pledged Securities, as applicable, and without notice to the Depository. All Surety Bonds, Pledged Securities, and the proceeds thereof which come into the possession of UST shall be paid to depositors or held by the UST in trust for depositors, and any amounts which are in excess of the amount needed to satisfy Depository’s obligations to depositors shall be returned to Depository or its successor in interest, after deducting any fees and costs necessary to enforce this Agreement and damages or deficiencies caused by default under this Agreement. 1Depository Depository shall not provide favorable treatment to a trustee or employees of a trustee, either personally or on non-trustee related business, because of the Bankruptcy Accounts. Favorable treatment includes providing any valuable consideration not provided to all other personal or businesses Depository customers. Favorable treatment does not include providing valuable consideration for use in trustee related business. 1Upon Upon presentation of a release signed by the Trustee, Standing Trustee, or Debtor in Possession, Depository agrees to provide to the UST any and all information or pertaining to that fiduciary’s Bankruptcy Accounts. That information includes, but is not limited to, copies of statements, deposit slips, checks and account agreements for all Bankruptcy Accounts maintained by Trustee, Standing Trustee, or Debtor in Possession at Depository. 1Upon Upon presentation of an order of the court or a consent signed by the Trustee, Standing Trustee, or Debtor in Possession, Depository agrees to place a hold on any Bankruptcy Accounts maintained by that fiduciary, thereby blocking all withdrawals and payments of any kind therefrom, until notified in writing by UST that the hold is to be released by Depository, or until the hold is released by court order. 1Depository Depository shall caption bank statements, and to the extent provided by Depository, deposit slips and check stock (collectively referred to as the “Deposit Account Records”), for Bankruptcy Accounts as follows: