Diary assumption of a nonresidential lease from the order for relief
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the order-for-relief date, diary 120 days and the 60-day performance window, list each unexpired nonresidential real-property lease of which the debtor is the lessee and which the debtor still occupies, and record whether an assumption or a rejection is on the file. Do not decide that the lease is deemed rejected.
- What the lawyer must review
- You decide whether the lease must be assumed or rejected, and you do not treat the diary date as a deemed rejection. 11 U.S.C. § 365(d)(4) says an unexpired lease of nonresidential real property under which the debtor is the lessee shall be deemed rejected, and the trustee shall immediately surrender that property to the lessor, if the trustee does not assume or reject it by the earlier of 120 days after the order for relief or the entry of an order confirming a plan. The court may, before the 120-day period expires, extend that period for 90 days on motion of the trustee or the lessor for cause. A subsequent extension may be granted only upon prior written consent of the lessor in each instance. Section 365(d)(3) says the trustee shall timely perform all obligations of the debtor, except those specified in section 365(b)(2), arising from and after the order for relief under any unexpired lease of nonresidential real property, until the lease is assumed or rejected, notwithstanding section 503(b)(1). The court may extend, for cause, the time for performance of an obligation that arises within 60 days after the order for relief, but not beyond that 60-day period. Acceptance of performance is not a waiver of the lessor's rights. Section 365(d)(4) is not the 60-day rule in section 365(d)(1) for a chapter 7 trustee and residential real property or personal property, and it is not section 365(d)(2), under which a trustee in chapter 9, 11, 12, or 13 may assume or reject residential real property or personal property at any time before confirmation unless the court orders an earlier determination. 11 U.S.C. § 503(b)(1) is the administrative-expense cross-reference in section 365(d)(3). It does not decide that rent is an allowed expense, and it does not make the trustee personally liable.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.