In re Putnal (11-53874)

When an undersecured creditor holds a security interest in real property and in post-petition rents generated from that property, each interest is entitled to separate adequate protection. Thus, the debtor must provide adequate protection to use post-petition rents that constitute cash collateral.  However, no adequate protection is necessary to the extent the rents are used to protect the underlying real property or to otherwise benefit the creditor's interest in the property.

Tuesday, October 2, 2012