bond is subject to the approval of the referee, who is to be satisfied by evidence of the value of the property of the sureties,2 of whom there must be two.3 Their property must be worth at least the amount of the bond over and above their liabilities and exemptions. Corporations may be accepted as sureties on trustees' bonds.5 The bond is to be filed in the office of the clerk of court. If a trustee fails to give a bond within the prescribed time, he will be deemed to have refused the appointment, or if he has accepted it his failure to give bond will vacate his office. Joint trustees may give joint or several bonds.8 A trustee's bond does not require a stamp.9 A certified copy of the order approving the bond 10 shall be conclusive evidence of the trustee's title.11 As soon as the trustee has accepted his appointment and given bond, he must prepare an inventory of all the bankrupt's property.12 If the bankrupt has no property, the trustee makes return that there are no assets. 13 Then, within twenty days after receiving notice of his appointment, he must set off the bankrupt's exemptions and report them to the court, with their estimated value.14 The form of report is prescribed. 15 Any creditor may except, and his exceptions shall be argued before the referee, subject to a review by the judge, on the request of either party.16 The trustee must within the first month make a report to the court of the condition of the estate.17 He must pay dividends within ten days after the referee declares them; 18 and as a dividend must be declared within thirty days of the adjudication in many cases (§ 65 b), the trustee will have to pay the dividend soon after his appointment, which will not often take place much less than thirty days after adjudication. The notice of dividend is to be given as laid down by Form 41. Rule XXIX. provides that no money shall be drawn from a depository except by a check or warrant signed by the clerk or trustee, and countersigned by the judge or clerk or referee. There must be stated in the warrant or check the date, sum, and account for which the money is drawn. All checks must be entered in the books when they are drawn.1 The trustee is to keep regular accounts showing receipts and disbursements, and report every two months to the court, showing the condition of the estate and the cash on hand. He must settle the estate as speedily as possible, and deposit all money in a bank designated by the court as the proper depository for bankrupt estates. All interest received from the property of a bankrupt estate must be paid to the estate. Payment of dividends and other disbursements are to be made only by checks, which must have revenue stamps.8 The final report and account of the trustee is to be filed with the court at least fifteen days before the date of the last meeting of the creditors. At the last meeting the trustee must make a detailed statement of the administration of the estate 10 He must be ready at all times to furnish information concerning the estate to all interested parties," and his papers and accounts are at all times open to the inspection of such parties.12 If the trustee neglects for five days to file any report or statement which it is his duty to file, the referee must order the trustee to show cause before the judge why he should not be removed, 13 The trustee's accounts are to be audited by the referee unless the court otherwise specially orders.14 The form of account is given in Form 49. The final account must be sworn to.15 1 Rule XXIX. 2 Act of 1898, § 47 (6). 3 Ib. § 47 (10). See Form 49. 4 Ib. § 47 (2). 5 Ib. § 47 (3). See § 524. 6 Ib. § 47 (1). 7 Ib. § 47 (4). 8 See 1 N. B. N. 205. 9 Act of 1898, § 47 (8). 19 Ib. § 47 (7). 11 Ib. § 47 (5). 12 Ib. § 49. 18 Rule XVII. 14 Ib. 15 Form 50. When the final account has been allowed the trustee will be discharged. It must be presented to a meeting of the creditors, who will have power to accept or refuse it.2 A trustee may submit a controversy to arbitration, and if he desires to do so he must file a petition setting forth the facts and the reasons why he wishes to arbitrate. In a similar way he may compromise a controversy. The creditors are entitled to ten days' notice of a compromise, but not of a submission to arbitration. Claims or debts may be compounded after petition and notice if the referee so orders.6 The trustee may apply to the referee by petition to reexamine any claim. He may ask for a review by the judge of any order of the referee. He may ask for an examination of the bankrupt, and he should take part in any examination so as to inform himself of the condition of the estate and to protect the interests of creditors. For appointment of trustees, see § 506; removal of trustees, § 508; compensation of trustees, § 510; property vesting in trustees, § 532; suits by or against trustees, § 473. As to the jurisdiction of state courts over suits by trustees, see § 485. For sales by a trustee, see § 532; redemption of property from a lien or sale subject to a lien, see § 532. § 511. Act of 1898 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 1 Form 51. 2 See infra, § 518. 8 See supra, § 489. 4 See supra, § 490. 6 Act of 1898, § 58. 6 Rule XXVIII. Rule XXI. (6). 8 Rule XXVII. See § 500. 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. c. The court may, in its discretion, withhold all compensation from any trustee who has been removed for cause. In addition to their fees allowed by this section, trustees are entitled to the necessary expenses which are approved in the settlement of their accounts. 1 There is no provision here, as there is in the section relating to payment of referees,2 for any compensation to trustees in composition cases. Sometimes a composition may be offered and confirmed after the trustee has performed services to the estate. It is doubtful whether there is any authority under the act to give the trustee compensation in such a case. Perhaps the court might find a way to pay the trustee a commission as part of the cost of administration of the estate under § 64 b (3). The cost of administration is a debt having priority, and as such must be paid in a composition.3 A reasonable attorney's fee was allowed to the assignee under the last act, if the work had been performed in the course of administration of the estate. 1 Rule XXXV. 3. 2 Act of 1898, § 40. 8 Ib. § 12 b. 4 Re Pegues, 3 N. B. R. 80, Fed. Cas. No. 10,907; Re Tulley, 3 N. B. R. 82, Fed. Cas. No. 14,235; Maybin v. But an assignee who was an Raymond, 15 N. B. R. 353, Fed. Cas. attorney could not recover compensation for his own legal services. It would seem that such fees should be allowed to trustees under the act of 1898 by virtue of the provisions of Rule XXXV. (3), which gives them the "expenses necessarily incurred in the performance of their duties." 2 § 512. Act of 1898. 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. It is made an offence punishable by fine and forfeiture of his office for a trustee to refuse to show his accounts to parties in interest when the court orders it.3 The final accounts of a trustee are to be laid before a meeting of creditors. Apparently they must be accepted or allowed by the creditors, though there is no express provision to that effect in the act. The referee is to approve them, and on their approval the trustee is discharged.5 § 513. Act of 1898. 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. cases cited); Re Treadwell, 23 Fed. Rep. 442; Gazin v. Norton, 38 Fed. Rep. 200. See Meddaugh v. Wilson, 151 U. S. 333. 1 Re Muldaur, 8 Ben. 65, Fed. Cas. No. 9905; but see Re Welge, 1 Fed. Rep. 216. 2 Re Mitchell, 1 N. B. N. 264; Re Michel, 1 N. B. N. 265. 3 Act of 1898, § 29 c (3). 5 Form 51. |