Chapter 27 - § 27.2 • USE, SALE, OR LEASE OF PROPERTY OF THE ESTATE

• Jurisdiction: Colorado

§ 27.2 • USE, SALE, OR LEASE OF PROPERTY OF THE ESTATE

§ 27.2.1—In General

If the business of the debtor is authorized to be operated and unless the court orders otherwise, the trustee may without notice or hearing sell or lease the property of the estate in the ordinary course of business and may use the property of the estate in the ordinary course of business.⁶¹ The trustee, after notice and a hearing, may, subject to an exception not applicable to real property, use, sell, or lease the property of the estate, other than in the ordinary course of business.⁶² At any time, on request of an entity that has an interest in property used, sold, or leased, or proposed to be used, sold, or leased by the trustee, the court, with or without a hearing, will prohibit or condition the use, sale, or lease as is necessary to provide adequate protection of the interest.⁶³ Where the property sold is subject to a homestead exemption, the trustee must comply with Colorado law so far as may be necessary to preserve the exemption.⁶⁴

At a sale of property that is subject to a lien that is an allowed claim, unless the court for cause orders otherwise, the holder of the claim may bid at the sale, and if he or she purchases the property, may offset the claim against the purchase price of the property.⁶⁵

Notwithstanding the provisions of § 365 (executory contracts and unexpired leases) the trustee may use, sell, or lease property notwithstanding any provision in a contract, a lease, or applicable law that is conditional on the insolvency or financial condition of the debtor, on the commencement of a case under the Bankruptcy Act, or on the appointment of or the taking possession by a trustee in bankruptcy or a custodian, and that effects, or gives an option to effect, a forfeiture, modification, or termination of the debtor's interest in the property.⁶⁶

The reversal or modification on appeal of an authorization of a sale or lease of property does not affect the validity of the sale or lease under such authorization to an entity that purchased or leased the property in good faith, whether or not the entity knew of the pendency of the appeal, unless the authorization and the sale or lease were stayed pending appeal.⁶⁷

The trustee may avoid a sale if the sale price was controlled by an agreement among potential bidders at the sale.⁶⁸

§ 27.2.2—Sale Free and Clear of Interests

The trustee may sell property of the estate⁶⁹ free and clear of any interest in the property of an...