IN RE METROPOLITAN MORTGAGE SECURITIES CO., INC. (Bankr.E.D.Wash. 2004)

PATRICIA WILLIAMS, Chief Judge, Bankruptcy

THIS MATTER came before the Court upon the motion of the Debtor in Possession for entry of an order granting its request to enter into a Site Improvement contract with Scott's Excavating, Inc. ("Scott's") and to use pre-petition Escrowed Funds to pay for the Site Improvement work. The Court, having found that due and adequate notice under the circumstances has been given, ORDERS as follows:

1. The Debtor's request to enter into the Site Improvements Contract with Scott's, and to use the Escrowed Funds for the Site Improvements is hereby GRANTED; and, it is further

2. Ordered that the Escrowed Funds are held and shall continue to be held by First American Title Insurance Co. for the exclusive benefit of Scott's, subject to Scott's submission of proof of satisfactory progress and completion of the Site Improvements in accordance with the Escrow holdback instructions. Upon satisfactory completion of the Site Improvements, the interest of Scott's in the Escrowed Funds shall be superior to the rights, liens or interests of the estate and any creditor of the estate in such funds. The Debtor retains a contingent interest in the Escrowed Funds only to the extent that the Site Improvements are completed for less than the full amount of the Escrowed Funds.