Can this be e-signed?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and retention requirements are satisfied.

Is court approval always required?

Generally yes for post-petition financing; the debtor must file a motion and obtain a bankruptcy-court order under 11 U.S.C. §364 before incurring superpriority liens or priming existing liens.

Do I need notarization or witnesses?

Not always; state law and local court practice determine notarization or witness needs. Verify with the bankruptcy clerk and state notary rules before final execution.

What authentication should be used?

Use multi-factor or enhanced KBA for high-assurance signings; maintain audit trails showing signer email, IP, timestamps, and executed actions to support attribution.

How long must records be kept?

Retain loan and security documents per federal and industry rules: at least 3 years (IRS) and 6 years for HIPAA-related records; longer retention may apply.

What if a filed agreement has errors?

Correct material errors via amended exhibit or replacement filing plus a notice to parties and the court; consult bankruptcy counsel before resubmitting to avoid undoing perfected liens.

Electronic Signature
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Post-Petition Loan and Security Agreement

Post-Petition Loan and Security Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

What a Post-Petition Loan and Security Agreement Is

A Post-Petition Loan and Security Agreement documents credit extended to a debtor after a bankruptcy petition has been filed and creates a security interest in collateral to secure repayment. It typically accompanies a motion seeking court approval of debtor-in-possession (DIP) financing, describes loan terms, priority of liens, covenants, and events of default, and becomes enforceable only with applicable bankruptcy-court authorization and compliance with federal and state law.

Why this Agreement Matters in Bankruptcy Proceedings

A properly drafted post-petition loan and security agreement clarifies lender protections, preserves collateral value, and enables the debtor to continue operations; it also supports the court’s assessment of necessity and fairness under bankruptcy standards such as 11 U.S.C. §364.

Who Prepares and Signs This Agreement

Each party should confirm authority to enter the agreement, the required court motion language, and any local practice rules before signing or submitting to the court.

Debtor-in-Possession management and finance teams who need working capital or cash collateral replacement.
Post-petition lenders (DIP lenders) providing liquidity and seeking perfected security interests.
Bankruptcy counsel and the chapter trustee who prepare filings and ensure court compliance.

Representative Signers

DIP Lender

Chief Credit Officer or authorized loan officer signs on behalf of the lending institution; lender should confirm board resolution or delegated authority and produce documentation of funds availability and underwriting.

Debtor

Chief Financial Officer or authorized officer signs for the debtor; ensure corporate authorization (board resolution or corporate certificate) and consistency with schedules and asset descriptions filed in the bankruptcy case.

Core Elements to Include in a Professional Agreement

The agreement should be complete and clear so the court and all parties can assess the financing’s necessity, value, and impact on existing liens and stakeholders.

Loan Terms

Loan amount, disbursement mechanics, interest rate, payment schedule, and fees; define whether advances are term loans or revolving credit and state any roll-up provisions.

Security Interest

Collateral description, perfection mechanics, lien priority (priming or superpriority under 11 U.S.C. §364(c)-(d)), and step-up provisions on disposition or default.

Events of Default

Specific defaults, cure periods, acceleration rights, and consequences including remedies, cash dominion, or adequate protection adjustments.

Covenants

Affirmative and negative covenants (reporting, insurance, liquidity covenants), information rights, and conditions precedent to lending.

Carve-outs

Permitted carve-outs for administrative costs, professional fees, and priority claims to preserve estate administration and court approval.

Remedies and Enforcement

Remedies upon default (foreclosure protocols, enforcement timing), waiver language, and any dispute-resolution provisions subject to bankruptcy court jurisdiction.

Essential Data Fields to Provide

Borrower Name: Exact legal entity name

Lender Name: Exact lending entity name

Loan Amount: Principal expressed in USD

Interest Rate: APR or stated rate

Maturity Date: MM/DD/YYYY format

Collateral: Concise asset description

Step-by-Step: Preparing and Submitting the Agreement

Follow these steps to prepare, review, and route the agreement for signatures and court consideration.

01

Gather Documents: Collect authorization, schedules, and collateral exhibits.
02

Draft Terms: Draft loan terms, covenants, and security descriptions.
03

Obtain Approvals: Secure internal authorizations and counsel sign-off.
04

File Motion: File DIP financing motion and serve required parties.

Customizing the Agreement for Online Completion

Configure the online workflow so required fields, attachments, and signer authentication meet court and lender requirements.

Field	Configuration
Authentication Method	Email link, SMS code, or enhanced KBA where required
Conditional Fields	Show collateral fields when security checkbox selected
Template Fields	Pre-fill debtor and lender legal names to avoid entry errors
Audit Trail	Enable IP, timestamp, and action logging for court record

Where to Send the Agreement and the Supporting Filings

After signatures, route the agreement to the court docket, the U.S. Trustee, and all affected creditors and lienholders per local rules.

Bankruptcy Court: Attach to the DIP motion when filing the notice of hearing
U.S. Trustee: Serve the U.S. Trustee per local procedures and timeframes
Secured Creditors: Provide copies to existing lienholders and affected counterparties
Loan Agent: Deliver executed originals to the agent or servicer for perfection

Digital Signing and File Format Requirements

Ensure the chosen solution can export signed documents and a certificate of completion suitable for electronic court filing and docketing.

File Formats: PDF/A, PDF, DOCX supported for court-ready documents
Integrations: CRM and ERP connectors: Salesforce, NetSuite, Microsoft 365
Encryption: TLS in transit and AES-256 at rest

Typical Timing and Court Process Steps

Timing depends on court schedules and local rules; below are common milestones you should anticipate when seeking approval for post-petition financing.

Motion Filing:

File DIP motion with proposed order and exhibit agreement.

Interim Hearing:

Court may grant limited interim funding pending final approval.

Final Hearing:

Court evaluates objections and approves final financing order.

Funding Date:

Disbursement occurs only after satisfaction of conditions precedent.

Reporting:

Provide lender reporting and updated schedules as required by order.

Key Milestones from Draft to Enforcement

Sequential stages show the lifecycle from negotiation to enforcement once the court issues an approval order.

01

Negotiation

Parties agree on principal terms and collateral structure.

02

Drafting

Prepare definitive agreement and necessary exhibits.

03

Court Motion

File motion and proposed interim/final orders for approval.

04

Enforcement

After order, lender may perfect security and enforce remedies.

Common Mistakes That Cause Delays or Objections

Missing corporate authorization such as board resolutions or officer delegation, which can invalidate signer authority before the court.
Vague collateral descriptions that prevent proper perfection or lead to priority disputes with pre-petition lienholders.
Failing to disclose existing liens and intercreditor arrangements, provoking objections from secured creditors and trustees.
Improper or absent notice to required parties under local rule, resulting in continuances or denial of approval.

Risks and Consequences of an Incorrect Agreement

Unapproved Financing: Court may void post-petition loan

Lien Priority Dispute: Existing creditors may challenge priority

Preference Exposure: Certain transfers could be unwound

Invalid Security Interest: Perfection defects can invalidate lien

Tax Consequences: Incorrect terms may trigger tax liabilities

Document Rejection: Clerks may refuse defective filings

Download, Supporting Documents, and Amendment Handling

Include the following support items when submitting the agreement to the court and when storing executed copies.

Export Formats

Provide signed PDFs, PDF/A for archival, and a certificate of completion showing timestamps and signer metadata for court records and docket attachments.

Supporting Documents

Attach board resolutions, corporate certificates, UCC-1 financing statements, collateral schedules, and any lender funding proofs needed for court review.

Notarization & Witnesses

Where required by state practice or local court rules, include notarized signatures or witness attestations before filing for perfection.

Amendments

Document amendments as written addenda executed by parties and, if material, approved by the court via a modification motion.

Vendor Pricing Overview for eSignature and Document Workflows

Basic vendor pricing and feature availability for eSignature platforms relevant to executing and storing signed post-petition agreements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions and Troubleshooting

Answers to common questions about execution, court approval, electronic signatures, and recordkeeping for post-petition loan agreements.

Need help? Contact support

Can this be e-signed?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and retention requirements are satisfied.
Is court approval always required?
Generally yes for post-petition financing; the debtor must file a motion and obtain a bankruptcy-court order under 11 U.S.C. §364 before incurring superpriority liens or priming existing liens.
Do I need notarization or witnesses?
Not always; state law and local court practice determine notarization or witness needs. Verify with the bankruptcy clerk and state notary rules before final execution.
What authentication should be used?
Use multi-factor or enhanced KBA for high-assurance signings; maintain audit trails showing signer email, IP, timestamps, and executed actions to support attribution.
How long must records be kept?
Retain loan and security documents per federal and industry rules: at least 3 years (IRS) and 6 years for HIPAA-related records; longer retention may apply.
What if a filed agreement has errors?
Correct material errors via amended exhibit or replacement filing plus a notice to parties and the court; consult bankruptcy counsel before resubmitting to avoid undoing perfected liens.

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