(a) A debtor in possession is
responsible for strict compliance with the Bankruptcy Code, Federal
Rules of Bankruptcy Procedure, and standing orders. Counsel for the
debtor-in-possession is responsible for instructing the debtor about
the U. S. trustee guidelines for a debtor-in-possession and insuring
compliance with those guidelines.
(b) The debtor, its officers, and
agents hold and manage the debtor’s assets as fiduciaries for the
estate; they must strictly comply with court orders and Bankruptcy
Code §§ 363 and 1107. The debtor must prevent the depletion of the
assets of the business during the proceedings, and it must notify
its counsel immediately of a depletion or potential depletion.
(c) If the debtor becomes aware of
facts indicating that the continued operation of its business may
not be in the best interest of the creditors or of the estate, it
must immediately notify its counsel, who may immediately notify the
court and recommend a solution.
(d) The debtor may not use property of
the estate to pay any prepetition unsecured obligation except on
order.
(e) The debtor must not transfer (sell, give, move, encumber)
an asset outside of the ordinary course of business except on order.
(f) The debtor must not incur administrative and priority
expenses unless funds are reasonably expected to be generated to pay
them.
(g) The debtor must comply fully with Title 11's tax
provisions, with the deposit requirements of the Internal Revenue
Code and Regulations, and with all state tax laws.
(h) The debtor must pay on a current basis all obligations
incurred by it in operating its business.
(i) The debtor must not use cash collateral without prior
written consent of the secured creditor or an order.
(j) This list of duties is not exclusive, and it does not
exclude unenumerated obligations imposed by law. Counsel for the
debtor-inpossession is responsible to instruct the debtor of this
rule immediately on filing the case.
(k) Counsel may advise the court of any knowing violation by
debtor.
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