adequate protection

adequate protection
Phrase used in several sections of the Bankruptcy Code to describe protection afforded to holders of secured claims. It is meant to preserve secured creditor's position at the time of bankruptcy. In re Jamaica House, Inc., Bkrtcy.Vt., 31 B.R. 192, 195.
More specifically, the lack of adequate protection of the creditor's interest in its collateral is a basis for relief from stay under Code No. 362(dXl); adequate protection is also the standard for creditor protection from sale or use or encumbrance of the collateral under Code sections 363 and 364. While adequate protection is not statutorily defined, section 361 sets out examples of adequate protection.
See In re Cooley, Bkrtcy.Pa., 37 B.R. 590, 592

Black's law dictionary. . 1990.

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