U.S. Code » Title 11 » Chapter CHAPTER 12— ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME › Subchapter SUBCHAPTER I— OFFICERS, ADMINISTRATION, AND THE ESTATE

11 U.S.C. § 1205

Adequate protection

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(a) Section 361 does not apply in a case under this chapter.(b) In a case under this chapter, when adequate protection is required under section 362, 363, or 364 of this title of an interest of an entity in property, such adequate protection may be provided by—(1) requiring the trustee to make a cash payment or periodic cash payments to such entity, to the extent that the stay under section 362 of this title, use, sale, or lease under section 363 of this title, or any grant of a lien under section 364 of this title results in a decrease in the value of property securing a claim or of an entity’s ownership interest in property;(2) providing to such entity an additional or replacement lien to the extent that such stay, use, sale, lease, or grant results in a decrease in the value of property securing a claim or of an entity’s ownership interest in property;(3) paying to such entity for the use of farmland the reasonable rent customary in the community where the property is located, based upon the rental value, net income, and earning capacity of the property; or(4) granting such other relief, other than entitling such entity to compensation allowable under section 503(b)(1) of this title as an administrative expense, as will adequately protect the value of property securing a claim or of such entity’s ownership interest in property.(Added and amended Pub. L. 99–554, title II, § 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3107, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title X, § 1001(a)(1), (c), Apr. 20, 2005, 119 Stat. 185, 186.)Editorial NotesCodification

For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section, see note set out preceding section 1201 of this title.

Statutory Notes and Related SubsidiariesEffective Dates

Permanent reenactment of section effective July 1, 2005, see section 1001(a)(2) of Pub. L. 109–8, set out as a Repeal, Reenactment, and Termination of Chapter note under section 1201 of this title. For effective dates of section and amendments extending periods for which section was reenacted prior to permanent reenactment, see Effective Date and Effective Date of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under section 1201 of this title.

Notes of Decisions
Cited in 23 cases (2 in the last 5 years), 1987–2025 · leading case: In Re Anderson, 88 B.R. 877 (Bankr. N.D. Ind. 1988).
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In Re Anderson, 88 B.R. 877 (Bankr. N.D. Ind. 1988). · cites it 3× “§ 506 (d) (lien avoidance) and 11 U.S.C. § 1205 (adequate protection). The court has previously considered the valuation of farm land in the case of In Re Snider Farms, Inc.”
Watford v. South Cent. Farm Credit (In Re Watford), 159 B.R. 597 (M.D. Ga. 1993). · cites it 4× “§ 363 ; (2) whether the bankruptcy court erred by ruling that appellant could not provide adequate protection pursuant to 11 U.S.C. § 1205 (b); and (3) whether the bankruptcy court erred by granting appel-lee’s motion for relief from stay pursuant to 11 U.”
In Re Rennich, 70 B.R. 69 (Bankr. D.S.D. 1987). · cites it 3× “While the Court finds both counsel’s arguments interesting, it believes that the question raised is simply whether lost opportunity costs in the form of interest payments are required for retention of secured equipment as part of the concept of what is adequate protection in a…”
In Re Stallings, 290 B.R. 777 (Bankr. D. Idaho 2003). · cites it 2× “11 U.S.C. § 1205 (b)(l)-(4). In particular, adequate protection for a debtor’s use of cash collateral in Chapter *788 12 can consist of, either alone or in concert with other measures, providing the secured creditor “an additional or replacement lien to the extent that such .”
United Sav. Ass'n v. Timbers of Inwood Forest Assocs., Ltd., 808 F.2d 363 (5th Cir. 1987). · cites it 5× “Family Farmer Bankruptcy Act of 1986, § 1205 (to be codified at 11 U.S.C. § 1205 ). 8 Significantly, § 1205 sanctions, as a form of adequate protection, payment by the debtor for the use of farmland of “the reasonable rent customary in the community where the property is…”
Richard Just. v. Valley Nat'l Bank, 849 F.2d 1078 (8th Cir. 1988). “As a result the Justices could not show that they would be in possession of the land at the expiration of the redemption period and could not offer “adequate protection” for the cash collateral under 11 U.S.C. § 1205 . They therefore failed to qualify for use of the collateral…”
Zink v. Vanmiddlesworth, 300 B.R. 394 (N.D.N.Y. 2003). · cites it 3× “11 U.S.C. § 1205 (b). The provision is not mandatory; its purpose is to protect the creditor against decreases in the value of the collateral where necessary.”
In Re Mikkelsen Farms, Inc., 74 B.R. 280 (Bankr. D. Or. 1987). “11 U.S.C. § 1205 (1986). One recent bankruptcy case has so held.”
In Re Erickson P'ship, 68 B.R. 819 (Bankr. D.S.D. 1987). “1985) (Bankruptcy Courts may allow recovery of lost opportunity costs in Chapter 11's); see also, 11 U.S.C. § 1205 and H.R. 8999 (Oct. 2, 1986); or address the absolute priority rule issue under Section 1129(b)(2)(B)(ii); see, In re Ahlers, 794 F.”
In Re Wilson, 378 B.R. 862 (Bankr. D. Mont. 2007). · cites it 2× “§ 1225 (a)(5)(B), lack of adequate protection under 11 U.S.C. § 1205 (b) and Debtors’ use of Harper Trust’s cash collateral from the sale of 20 acres of property without its consent 6 .”
In re Keokuk, 600 B.R. 593 (Bankr. E.D. Ky. 2019). “See 124 CONG. REC. H11, 107 (daily ed. Sept. 28, 1978) (statement of Rep.”
In re Vegt, 495 B.R. 433 (Bankr. D. Iowa 2013). · cites it 2× “Debtors’ cash collateral proposal provides for First Security Bank to receive replacement liens and payments of $2,500.00 a month after Debtors achieve $47,500 in milk sales with payments to increase to $5,000.”
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