Exemptions - Concurrence of Two Trustees - Compensation. [Ch. V. Exemptions. Section 47a (11)-As to the bankrupt's duty to make claim therefor in his schedule, compare section 7 (8). As to the effect of failure by the trustee to designate and set apart the exemptions, compare section 6, paragraph on Trustee's Rights in Exempt Property. Concurrence of Two Trustees. Section 47b.-The requirement that at least two of the trustees must concur to make any act valid, is but one of the many facts which imply that where one or more of the trustees die, a vacancy will be considered as occurring, which will make it the duty of the creditors to elect a sucCompare commentaries on sections 44 and 46. cessor. SEC. 48. Compensation of Trustees.-a Trustees shall receive. as full compensation for their services, payable after they are rendered, a fee of five dollars deposited with the clerk at the time the petition is filed in each case, except when a fee is not required from a voluntary bankrupt, and from estates which they have administered, such commissions on sums to be paid as dividends and commissions as may be allowed by the courts, not to exceed three per centum on the first five thousand dollars or less, two per centum on the second five thousand dollars or part thereof, and one per centum on such sums in excess of ten thousand dollars. b In the event of an estate being administered by three trustees instead of one trustee or by successive trustees, the court shall apportion the fees and commissions between them according to the services actually rendered, so that there shall not be paid to trustees for the administering of any estate a greater amount than one trustee would be entitled to. The court may, in its discretion, withhold all compensation from any trustee who has been removed for cause. Analogous Provisions of Former Acts. R. S. section 5099; act of 1867, section 28; act of 1800, section 29; also R. S. section 5127; act of 1867, section 47; also R. S. section 5127A; also R. S. section 5124; act of 1867, section 47. amended by act of July 27th, 1868, ch. 258. section 2; act of 1800, section 47. $48.] After Services are Rendered After Services Are Rendered.-As in the case of referees, the law provides that the trustees shall receive no compensation until their services are rendered, and that then the amount paid them as commissions shall be upon the sums paid out as dividends and commissions, not upon the amount of their receipts and disbursements. As to cases in which a voluntary bankrupt is excused from paying a fee, compare section 51 a (2). Compare G. O. 35 (3, 4,) as follows: 3. The compensation allowed to trustees by the act shall be in full compensation for the services performed by them; but shall not include expenses necessarily incurred in the performance of their duties and allowed upon the settlement of their accounts. 4. In any case in which the fees of the clerk, referee and trustee are not required by the act to be paid by a debtor before filing his petition to be adjudged a bankrupt, the judge, at any time during the pendency of the proceedings in bankruptcy, may order those fees to be paid out of the estate; or may, after notice to the bankrupt, and satisfactory proof that he then has or can obtain the money with which to pay those fees, order him to pay them within a time specified, and, if he fails to do so, may order his petition to be dismissed. An interesting case (In re Plummer, 3 Am. B. R. 320) Referee Hotchkiss of New York held that where a trustee does more than merely collect the assets, and disburse the money so collected, and in addition to the services required of him by law, performs extra services for the beneficiaries of the trust, particularly where he is directed so to do by the creditors themselves, he should be allowed a reasonable extra compensation, in analogy to the case of a railway receiver. In that case, at the request of the creditors, a trustee continued running a manufacturing plant, buying new material, and making necessary repairs to machinery, and giving his personal attention to the business with a profit to the creditors. But the referee also held that the better practice requires the trustee under such circumstances, in his notice of final meeting, to notify creditors of his intention to present such a bill, but where three-fourths of the creditors were represented at the meeting, and all asked that the bill should be allowed, it was held that such claim should. Accounts and Papers of Trustees - Bonds of Referees and Trustees. [Ch. V. be ordered and allowed and included in the expenses of the administration of the estate. It has also been held under the present Act that where a trustee, himself an attorney-at-law, rendered professional services necessary to the proper administration of the trust, he was entitled to such reasonable compensation as he would have been obliged to pay had he employed other competent counsel. (In re Mitchell, I Am. B. R. 687; referee's opinion.) There was a decision to the same effect under the Bankruptcy Law of 1867. (In re Welge, I Fed. 216.) But see, contra, In re Meldaur (17 Fed. Cas. 958.) It seems that the opinion of the learned referee in the Plummer case is based on principles of abstract equity. It is a little doubtful, however, in the light of section 48a of the Bankruptcy Law, providing that the filing fee and the commissions shall be the only compensation of trustee, whether it will be sustained. SEC. 49. Accounts and Papers of Trustees.—a The accounts and papers of trustees shall be open to the inspection of officers and all parties in interest. Analogous Provisions of Former Acts. R. S. section 5062B. Reasonable Opportunity for Inspection.-Compare notes to section 29c (3). as to failure to permit a reasonable inspection of accounts being an offense punishable by imprisonment, and Form 40 showing what such account should be. See G. O. 17. SEC. 50. Bonds of Referees and Trustees.-a Referees, before assuming the duties of their offices, and within such time as the district courts of the United States having jurisdiction shall prescribe, shall respectively qualify by entering into bond to the United States in such sum as shall be fixed by such courts, not to exceed five thousand dollars, with such sureties as shall be approved by such courts, conditioned for the faithful performance of their official duties. 50.] Bonds of Referees and Trustees. b Trustees, before entering upon the performance of their official duties, and within ten days after their appointment, or within such further time, not to exceed five days, as the court may permit, shall respectively qualify by entering into bond to the United States, with such sureties as shall be approved by the courts, conditioned for the faithful performance of their official duties. c The creditors of a bankrupt estate, at their first meeting after the adjudication, or after a vacancy has occurred in the office of trustee, or after an estate has been reopened, or after a composition has been set aside or a discharge revoked, if there is a vacancy in the office of trustee, shall fix the amount of the bond of the trustee; they may at any time increase the amount of the bond. If the creditors do not fix the amount of the bond of the trustee as herein provided the court shall do so. d The court shall require evidence as to the actual value of the property of sureties. e There shall be at least two sureties upon each bond. f The actual value of the property of the sureties, over and above their liabilities and exemptions, on each bond shall equal at least the amount of such bond. g Corporations organized for the purpose of becoming sureties upon bonds, or authorized by law to do so may be accepted as sureties upon the bonds of referees and trustees whenever the courts are satisfied that the rights of all parties in interest will be thereby amply protected. h Bonds of referees, trustees, and designated depositories shall be filed of record in the office of the clerk of the court and may be sued upon in the name of the United States for the use of any person injured by a breach of their conditions. i Trustees shall not be liable, personally or on their bonds, to the United States, for any penalties or forfeitures incurred by the bankrupts under this Act, of whose estates they are respectively trustees. j.Joint trustees may give joint or several bonds. k If any referee or trustee shall fail to give bond, as herein provided and within the time limited, he shall be deemed to have declined his appointment, and such failure shall create a vacancy in his office. Suits upon referees' bonds shall not be brought subsequent to two years after the alleged breach of the bond. mi Suits upon trustees' bonds shall not be brought subsequent to two years after the estate has been closed. Bonds Under the Acts of 1867 and 1898 — Duties of Clerks. [Ch. V. Analogous Provisions of Former Acts. As to the right of a creditor to demand that the assignee give a bond: R. S. section 5036; act of 1867, section 13; act of 1841, section 9. As to duty of the register to give a bond: R. S. section 4995; act of 1867, section 3. Bonds Under the Acts of 1867 and 1898.-Under the Act of 1867, registers were always required to give bonds, but assignees were not obliged to do so, unless the court on motion of a creditor expressly ordered it. For form of bond of referees under present law see Form No. 17; for bond of trustees see Form No. 25; and for order approving bond of trustees see Form No. 26. SEC. 51. Duties of Clerks.-a Clerks shall respectively (1) account for, as for other fees received by them, the clerk's fee paid in each case and such other fees as may be received for certified copies of records which may be prepared for persons other than officers; (2) collect the fees of the clerk, referee, and trustee in each case instituted before filing the petition, except the petition of a proposed voluntary bankrupt which is accompanied by an affidavit stating that the petitioner is without, and cannot obtain, the money with which to pay such fees; (3) deliver to the referees upon application all papers which may be referred to them, or, if the offices of such referees are not in the same cities or towns as the offices of such clerks, transmit such papers by mail, and in like manner return papers which were received from such referees after they have been used; (4) and within ten days after each case has been closed pay to the referee, if the case was referred, the fee collected for him, and to the trustee the fee collected for him at the time of filing the petition. Analogous Provisions of Former Acts. As to duty to account for moneys received: Rule XXVIII of General Orders in Bankruptcy, under the act of 1867. As to general duties of the clerk: Rule I of Orders in Bankruptcy, under the act of 1867. In addition to the duties of the clerks set forth in this section see G. O. 1, 2 and 3, as follows: |