kept in a separate book or books, and shall, together with the papers on file, constitute the records of the case. c. The book or books containing a record of the proceedings shall, when the case is concluded before the referee, be certified to by him, and, together with such papers as are on file before him, be transmitted to the court of bankruptcy and shall there remain as a part of the records of the court. After a case is concluded, the referee should transmit to the clerk the record and all papers in the case.1 506. Act of 1898. SEC. 43. REFEREE'S ABSENCE OR DISABILITY.-a. Whenever the office of a referee is vacant, or its occupant is absent or disqualified to act, the judge may act, or may appoint another referee, or another referee holding an appointment under the same court may, by order of the judge, temporarily fill the vacancy. $507. Act of 1898. SEC. 44. APPOINTMENT OF TRUSTEES.a. The creditors of a bankrupt estate shall, 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, or if there is a vacancy in the office of trustee, appoint one trustee or three trustees of such estate. If the creditors do not appoint a trustee or trustees as herein provided, the court shall do so. Trustees are to be chosen by a vote of a majority of all creditors present whose claims have been allowed (§ 56). Their appointment is subject to the approval of the referee or judge 2 1 Act of 1898, § 39 a (7). 2 Rule XIII. This was the law under the act of 1867.1 The referee will almost always be the one to approve, but his action may be reviewed by the judge under § 38. The creditors sign the appointment certificate, and the referee writes his approval on it.2 The trustee is to be notified of his appointment by the referee, who must tell him the penal sum of his bond and require him to accept or reject the appointment at once.3 There is no power to appoint an additional assignee as was done under the Act of 1867 in certain cases. If the creditors do not appoint a trustee, the referee does so. The order of appointment should state the fact that the creditors did not make choice of a trustee. If the trustee is removed or resigns, the referee must call a meeting for the choice of a new trustee. The same procedure would probably be followed, if a trustee refused to accept the office. § 508. Act of 1898.-SEC. 45. QUALIFICATIONS OF TRUSTEES.a. Trustees may be (1) individuals who are respectively competent to perform the duties of that office, and reside or have an office in the judicial district within which they are appointed, or (2) corporations authorized by their charters or by law to act in such capacity and having an office in the judicial district within which they are appointed. A trustee must have no interests adverse to those of the general creditors, and must not have used unfair means to procure his appointment. Confirmation was refused when the bankrupt had canvassed for votes for a certain person as assignee or when the assignee himself had done so in certain circumstances. 8 1 Supra, § 289. 2 Form 22. 3 Rule XVI. See Form 24. 4 Supra, § 293. 5 Form 23. 6 Form 55. 7 Supra, § 290. 8 Ib. It was held under the last law that the trustee should have a residence within the jurisdiction. He must now reside or have an office within the judicial district. This will not prevent the creditors from appointing a person residing in another district to be trustee within that district, as was sometimes done.2 The provisions of clause 2 are new. "Judicial district" is used here in contrast with territorial district in § 35 (4). It means the district over which the court of bankruptcy has jurisdiction, and includes all the referees' districts which are established by the court under the authority of § 34. § 509. Act of 1898. SEC. 46. DEATH OR REMOVAL OF TRUSTEES. a. The death or removal of a trustee shall not abate any suit or proceeding which he is prosecuting or defending at the time of his death or removal, but the same may be proceeded with or defended by his joint trustee or successor in the same manner as though the same had been commenced or was being defended by such joint trustee alone or by such successor. The court of bankruptcy may remove a trustee on the complaint of a creditor after a hearing (§ 2 (17)); the referee has not this power. There is no power under this law for creditors to remove trustees, as there used to be by § 5039 of the Revised Statutes. A trustee may be removed for gross neglect of his duties as well as for fraud, and for refusal to permit an examination of the affairs of the estate. The same provision as to survival of suits begun by a trustee was contained in Revised Statutes, § 5048. Under the Act 1 Supra, § 291. 2 Ib. 3 Rule XIII. No. 9852; Re Blodget, 5 N. B. R. 472, 4 Formerly § 18 of Act of 1867, 14 Cas. No. 10,982. Stats. 525. Formerly § 16 of Act of 1867, 14 5 Re Morse, 7 N. B. R. 56, Fed. Cas. Stats. 524. of 1800 the executor of an assignee succeeded to his rights of action.1 3 The judge alone has the power to remove a trustee.2 A creditor desiring his removal must petition the judge, stating the reasons why the trustee should be removed, and asking for a hearing. Notice of the petition, with the name of the petitioner and the reasons alleged, must be given to the trustee.1 If, after a hearing, the judge determines on the removal, he must make an order to that effect.5 A meeting for the appointment of a new trustee is then called by the referee." If the trustee neglects to file any report or statement which it is his duty to file within five days of the time when it is due, the referee must order him to show cause before the judge why he should not be removed from his office. A copy of the order shall be served on the trustee seven days before the time set for the hearing, and proof of the service thereof shall be given to the clerk of the court. The order for removal prescribed by Form 54 is only suitable to the case of a removal on a creditor's petition. It should be changed to suit the facts of a removal under Rule XVII. § 510. Act of 1898.- SEC. 47. DUTIES OF TRUSTEES. a. Trustees shall respectively (1) account for and pay over to the estates under their control all interest received by them upon property of such estates; (2) collect and reduce to money the property of the estates for which they are trustees, under the direction of the court, and close up the estate as expeditiously as is compatible with the best interests of the parties in interest; (3) deposit all money received by them in one of the designated depositories; (4) disburse money only by check or draft on the depositories in which it has been deposited; (5) furnish such information concerning the estates of which they are trustees and their administration as may be requested by parties in interest; (6) keep regular accounts showing all amounts received and from what sources and all amounts expended and on what accounts; (7) lay before the final meeting of the creditors detailed statements of the administration of the estates; (8) make final reports and file final accounts with the courts fifteen days before the days fixed for the final meetings of the creditors; (9) pay dividends within ten days after they are declared by the referees; (10) report to the courts, in writing, the condition of the estates and the amounts of money on hand, and such other details as may be required by the courts, within the first month after their appointment and every two months thereafter, unless otherwise ordered by the courts; and (11) set apart the bankrupt's exemptions and report the items and estimated value thereof to the court as soon as practicable after their appointment. b. Whenever three trustees have been appointed for an estate, the concurrence of at least two of them shall be necessary to the validity of their every act concerning the administration of the estate. The trustee is chosen at the first meeting of creditors,' and the amount of his bond is then determined.2 If the creditors do not choose a trustee, the referee will do so. The referee notifies him of his appointment and of the bond required, and it is the trustee's duty at once to accept or reject. He must file his bond within ten days of his appointment, or within five days longer if the court grants an extension of time. The 1 See § 507. 2 See § 513. 8 See § 507. Form 23. 4 Form 24. 5 Act of 1898, § 50 b. |