Cash Collateral | Practical Law

Cash Collateral | Practical Law

Cash Collateral

Cash Collateral

Practical Law Glossary Item 8-382-3312 (Approx. 3 pages)

Glossary

Cash Collateral

Collateral consisting of cash, bank accounts, cash equivalents, or the proceeds or rents derived from other collateral held by the debtor in bankruptcy subject to creditors' liens. Cash collateral can only be used by the debtor with the creditor's consent or if the court, after notice and a hearing, finds the creditor is adequately protected and authorizes the use. Until the debtor obtains consent from the creditor or court authorization to use, sell, or lease cash collateral, the debtor must segregate it in a separate bank account and account for all property in its possession and control.