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IN RE PROALERT, LLC

BAP No. AZ-03-1601-PBD. Bankruptcy No. 03-17193-CGC.

314 B.R. 436 (2004)

In re PROALERT, LLC, Debtor. Security Leasing Partners, LP, Appellant, v. ProAlert, LLC, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed September 1, 2004.

Attorney(s) appearing for the Case

Thomas J. Salerno, Squire, Sanders & Dempsey LLP, Phoenix, AZ, for Security Leasing Partners, LP, Appellant.

Gerald K. Smith, Lewis & Roca, Phoenix, AZ, for ProAlert, LLC, Appellee.

Before PERRIS, BRANDT and DONOVAN, Bankruptcy Judges.

OPINION

PERRIS, Bankruptcy Judge.

This appeal raises the question of whether a bankruptcy court may allow the use of cash collateral pursuant to § 3632 in a chapter 11 case without considering whether the requirements for a § 506(c) surcharge were met. The bankruptcy court concluded that it could, and allowed the debtor in possession to use cash collateral to pay estate...

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