No. 02 B49672; (Jointly Administered)United States Bankruptcy Court, N.D. Illinois, Eastern Division
February 3, 2003
ORDER AUTHORIZING THE AGENCY DEBTORS TO CONTINUE TO (A) PERFORM AGENCY DEBTORS’ CONTRACTUAL OBLIGATIONS WITH INSURANCE COMPANIES; (B) REMIT ANY PREPETITION AMOUNTS OWING THEREUNDER; (C) REMIT INSURANCE PREMIUM PAYMENTS TO APPLICABLE INSURANCE COMPANIES; AND (D) AUTHORIZING AND DIRECTING FINANCIAL INSTITUTIONS TO HONOR AND PROCESS CHECKS AND TRANSFERS RELATED TO SUCH CLAIMS
CAROL A. DOYLE, United States Bankruptcy Judge
Upon consideration of the Motion (“Motion”) filed by the Agency Debtors[3] , seeking an order authorizing the Agency Debtors to continue to (a) perform their contractual obligations under the Agency Agreements (defined herein), including the collection and remittance of insurance premiums; (b) remit any prepetition amounts wider those Agency Agreements; (c) remit insurance premium payments to applicable insurance companies; and (d) for an order authorizing and directing financial institutions to honor and process checks and transfers related to such claims; and the Court having jurisdiction to consider the Motion and the relief requested therein in accordance with 28 U.S.C. § 1334; and it appearing that notice of the Motion was good and sufficient under the particular circumstances and that no other or further notice need be given; and the Court having determined that the relief sought in the Motion is in the best interests of the Agency Debtors, their creditors and all parties in interest; and upon the Motion and all of the proceedings had before this Court; and after due deliberation and sufficient cause appearing therefore, it is hereby ORDERED THAT:
1. The Motion is granted;
2. The Agency Debtors are authorized to continue to perform their contractual obligations under the Agency Agreements, including collecting in a fiduciary capacity and remitting insurance premiums on behalf of the Insurance Companies pursuant to the existing Agency Agreements;
3. The Agency Debtors are authorized to remit insurance premiums to the Insurance Companies in the ordinary course of their businesses pursuant to section 363(b) of the Bankruptcy Code, including those premiums that may have been billed or collected before the Petition Date;
4. The Agency Debtors are authorized to remit insurance proceeds received from the Insurance Companies to customers in the ordinary course of their businesses pursuant to section 363(b) of the Bankruptcy Code, including those Insurance Proceeds that may have been received before the Petition Date;
5. The Agency Debtors are authorized to continue to perform their contractual obligations under all applicable insurance policies issued to the Agency Debtors in the ordinary course of business;
6. In accordance with this Order and any other order of this Court, each of the banks and financial institutions at which the Agency Debtors maintain their accounts relating to the payment of the claims that the Agency Debtors request authority to pay in the Motion are authorized and directed to honor checks presented for payment, and to honor all fund transfer requests made by the Agency Debtors related thereto, to the extent that sufficient funds are on deposit in such accounts;
7. The Agency Debtors and the Insurance Companies are authorized to make such transfers, including setoffs, as are permitted in the Agency Agreements and other agreements between them, and such transfers are authorized pursuant to §§ 362, 363(b), 547 and 553 of the Bankruptcy Code;
8. To the extent that the Agency Debtors have granted valid, perfected security interests in prepetition collateral to any of the Insurance Companies, each such Insurance Company hereby also is granted a replacement security interest in each of the same categories of collateral to the extent such collateral already has been acquired on the petition date or is acquired thereafter by the Agency Debtors. Each such replacement lien shall have the same priority or priorities as the lien of that Insurance Company in the same categories of prepetition collateral, and each such replacement lien shall be subject to and governed by the provisions of the existing security agreements and other agreements between the Agency Debtors and each such Insurance Company. To the extent that the Agency Debtors are obligated under such existing security agreements and other agreements to hold premium or other funds in a fiduciary capacity for the benefit of an Insurance Company, such funds shall be held in a fiduciary capacity and the Agency Debtors shall remit them to that Insurance Company pursuant to the terms of the agreements,
9. This Court retains jurisdiction with respect to all matters arising from or related to the implementation of this Order;
10. Notwithstanding the possible applicability of Bankruptcy Rules 6004(g), 7062, 9014, or otherwise, the terms and conditions of this Order shall be immediately effective and enforceable upon its entry.
11. All time periods set forth in this Order shall be calculated in accordance with Bankruptcy Rule 9006(a).