TOM CORNISH, Bankruptcy JudgePage 2
Before the Court for consideration is U.S. Premium Finance's ("USPF") Motion for Order Terminating Automatic Stay, Abandoning Property and Compelling Turnover of Property (the "Motion") filed April 8, 2005. For convenience, all capitalized terms used in this Order not otherwise defined herein carry the same meaning as found in the Motion. Based upon review of the Motion and the Court's file, the Court FINDS:
(1) On April 8, 2005, USPF filed the Motion and properly served it on all parties listed on the Court's mailing matrix as of that date.
(2) Also on April 8, 2005, USPF properly filed and served the Certificate of Mailing, certifying proper service of the Motion.
(3) Also on April 8, 2005, USPF properly filed and served the Notice of Motion, Notice of Deadline to File Objection to Motion and Notice of Hearing if Objection is Filed (the "Notice").
(4) The deadline to object to the Motion was April 26, 2005.
(5) On April 26, 2005, the Chapter 7 Trustee filed an objection to the Motion.
(6) Also on April 26, 2005, Hilb Rogal Hobbs of Oklahoma, Inc. ("HRH") and Benchmark Insurance Company ("Benchmark") filed an objection to the Motion. Based upon the objection and other information provided to USPF, Benchmark is not holding any Unearned Commissions or Returned Premiums attributable to Debtor. HRH has brought an adversary proceeding in the consolidated bankruptcy cases in the nature of an interpleader, Adversary No. 05-07059 (the "HRH Adversary").
(7) Pursuant to the two Insurance Policies, USPF holds a valid first, prior and superior security interest in the Unearned Premiums under Oklahoma law.
(8) The Estate possesses no equity in the Unearned Premiums and the Unearned Premiums are not necessary for reorganization.
(9) To the extent that the Estate holds a subordinate interest in the Unearned Premiums, the Estate's interest is of inconsequential value and benefit to the Estate.
(10) The Motion should be GRANTED in its entirety.
(11) Cause exists to waive the ten day stay referenced in F.R. Bankr. P. 4001(a)(3).
It is therefore ORDERED that:
(1) the automatic stay regarding the Unearned Premiums is terminated pursuant to 11 U.S.C. § 362(d);
(2) the Unearned Premiums are abandoned pursuant to 11 U.S.C. § 554;
(3) the ten day stay referenced in F.R. Bankr. P. 4001(a)(3) is waived;
(4) Benchmark is not in possession of any Unearned Commissions or Returned Premiums attributable to Debtors;
(5) Professional Insurers, the Trustee and all other persons and entities are hereby directed to turn over to USPF any portion of the Unearned Premiums that each may hold within ten days of the entry of this Order; and
(6) The Unearned Commissions and Returned Premiums held be HRH will be addressed in a judgment to be entered in the HRH Adversary.