Jointly Administered Under Case No. 04-00757-W11.United States Bankruptcy Court, E.D. Washington.
March 18, 2004
Barry W. Davidson, DAVIDSON MEDEIROS, Spokane, Washington, and Bruce W. Leaverton, Mary Jo Heston, Susan Brye Jahnke, LANE POWELL SPEARS LUBERSKY LLP, Seattle, Washington, Attorneys for Metropolitan Mortgage Securities Co., Inc., Debtor and Debtor-in-Possession.
Ford Elsaesser, Doug B. Marks, Bruce A. Anderson, ELSAESSER JARZABEK ANDERSON MARKS ELLIOT McHUGH, CHARTERED, Sandpoint, Idaho, and Jeffrey T. Wegner, John J. Jolley, Jr., KUTAK ROCK LLP, Omaha, Nebraska, Attorneys for Summit Securities, Inc., Debtor and Debtor-in-Possession.
ORDER AUTHORIZING METROPOLITAN’S PAYMENT OF PRE-PETITION INSURANCE PREMIUM FINANCING OBLIGATIONS
PATRICIA WILLIAMS, Chief Judge, Bankruptcy
THIS MATTER having come before the Court on the motion of Metropolitan Mortgage Securities Co., Inc. (“Metropolitan” or “Debtor”), pursuant to 11 U.S.C. §§ 105(a), 361 and 364(c)(2), Fed.R.Bankr.P. 4001, and Local Bankruptcy Rule
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4001-2 for entry of an order authorizing the Debtor to enter into a secured insurance premium finance agreement with AFCO Premium Credit, LLC (“AFCO”); it appearing that no objections or responses to the motion were filed; and, having determined that the Debtor’s motion is in the best interests of the Debtor’s estate; and, after due deliberation and finding that sufficient cause exists therefor;
NOW, THEREFORE, it is HEREBY ORDERED:
1. The Debtor’s motion is GRANTED.
2. The Debtor is authorized to continue to honor its obligations under the Commercial Premium Finance Agreement dated November 16, 2003, executed by Metropolitan in favor of AFCO (the “Financing Agreement”), a true and correct copy of which is attached to the Order.
3. AFCO is hereby granted a security interest pursuant to 11 U.S.C. 364 in the gross unearned premiums payable in the event of cancellation of the Insurance Policies (the “Unearned Premiums”), loss payments that reduce the Unearned Premiums subject to any mortgagee or loss payee interests, and any interests that may arise under any state insurance guarantee fund relating to the Insurance Policies, to the extent provided in the Financing Agreement.
4. Post-petition payments by the Debtor to AFCO under the Financing Agreement shall constitute adequate protection under Section 361 of the Bankruptcy Code with respect to the Unearned Premiums for the benefit of AFCO.
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5. The terms of the Financing Agreement were negotiated in good faith, and the security interest granted hereunder shall be afforded the protection set forth in Section 364(e) of the Bankruptcy Code.
[EDITORS’ NOTE: DOCUMENT IS ELECTRONICALLY NON-TRANSFERRABLE.]Page 1