Order of the bankruptcy court that governs the conditions of the debtor’s use of the lender’s cash collateral. The cash collateral order is usually entered at the outset of the case, either after an agreement between the borrower and lender or after a hotly contested hearing at which the lender and debtor argue about whether the lender’s interest in the cash is adequately protected or whether the cash is property of the debtor at all.
In those instances where the lender and debtor agree to the terms of a cash collateral order, the lender often is able to extract from the debtor a number of pro-lender concessions.
Bankruptcy Code § 363(c)(2). See also Adequate Protection, Cash Collateral, Use of Cash Collateral.