In Re Kenny Kar Leasing, Inc.

MEMORANDUM OPINION IN RE MOTIONS TO USE CASH COLLATERAL AND FOR ADEQUATE PROTECTION

ROBERT L. ORDIN, Bankruptcy Judge.

On July 1, 1980, Kenny Kar Leasing (hereinafter referred to as “Kenny”), filed a proceeding under Chapter 11 (11 U.S.C. § 1101 et seq.). Kenny is engaged in leasing motor vehicles; it acquires vehicles by purchase and leases these vehicles to members of the public. Its business operation is financed by arrangements with two banks — Union Bank (by agreement entered into August 2, 1976) and Crocker Bank (by agreement entered into March 1, 1978). Kenny’s obligations to Crocker are…