CHAPTER 3CASE ADMINISTRATION
Sub Chapter III Administration
Sec. 345. Money of estates
SCRI (a) A trustee in a case under this title may make such deposit or
investment of the money of the estate for which such trustee serves as
will yield the maximum reasonable net return on such money, taking into
account the safety of such deposit or investment.
(b) Except with respect to a deposit or investment that is insured
or guaranteed by the United States or by a department, agency, or
instrumentality of the United States or backed by the full faith and
credit of the United States, the trustee shall require from an entity
with which such money is deposited or invested--
(1) a bond--
(A) in favor of the United States;
(B) secured by the undertaking of a corporate surety
approved by the United States trustee for the district in which
the case is pending; and
(C) conditioned on--
(i) a proper accounting for all money so deposited or
invested and for any return on such money;
(ii) prompt repayment of such money and return; and
(iii) faithful performance of duties as a depository; or
(2) the deposit of securities of the kind specified in section
9303 of title 31;
unless the court for cause orders otherwise.
(c) An entity with which such moneys are deposited or invested is
authorized to deposit or invest such moneys as may be required under
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2565; Pub. L. 97-258, Sec. 3(c),
Sept. 13, 1982, 96 Stat. 1064; Pub. L. 98-353, title III, Sec. 437, July
10, 1984, 98 Stat. 370; Pub. L. 99-554, title II, Sec. 214, Oct. 27,
1986, 100 Stat. 3099; Pub. L. 103-394, title II, Sec. 210, Oct. 22,
1994, 108 Stat. 4125.)
Historical and Revision Notes
The House amendment moves section 345(c) of the House bill to
chapter 15 as part of the pilot program for the U.S. trustees. The bond
required by section 345(b) may be a blanket bond posted by the financial
depository sufficient to cover deposits by trustees in several cases, as
is done under current law.
senate report no. 95-989
This section is a significant departure from section 61 of the
Bankruptcy Act [section 101 of former title 11]. It permits a trustee in
a bankruptcy case to make such deposit of investment of the money of the
estate for which he serves as will yield the maximum reasonable net
return on the money, taking into account the safety of such deposit or
investment. Under current law, the trustee is permitted to deposit money
only with banking institutions. Thus, the trustee is generally unable to
secure a high rate of return on money of estates pending distribution,
to the detriment of creditors. Under this section, the trustee may make
deposits in savings and loans, may purchase government bonds, or make
such other deposit or investment as is appropriate. Under proposed 11
U.S.C. 541(a)(6), and except as provided in subsection (c) of this
section, any interest or gain realized on the deposit or investment of
funds under this section will become property of the estate, and will
thus enhance the recovery of creditors.
In order to protect the creditors, subsection (b) requires certain
precautions against loss of the money so deposited or invested. The
trustee must require from a person with which he deposits or invests
money of an estate a bond in favor of the United States secured by
approved corporate surety and conditioned on a proper accounting for all
money deposited or invested and for any return on such money.
Alternately, the trustee may require the deposit of securities of the
kind specified in section 15 of title 6 of the United States Code [31
U.S.C. 9303], which governs the posting of security by banks that
receive public moneys on deposit. These bonding requirements do not
apply to deposits or investments that are insured or guaranteed the
United States or a department, agency, or instrumentality of the United
States, or that are backed by the full faith and credit of the United
These provisions do not address the question of aggregation of funds
by a private chapter 13 trustee and are not to be construed as excluding
such possibility. The Rules of Bankruptcy Procedure may provide for
aggregation under appropriate circumstances and adequate safeguards in
cases where there is a significant need, such as in districts in which
there is a standing chapter 13 trustee. In such case, the interest or
return on the funds would help defray the cost of administering the
cases in which the standing trustee serves.
1994--Subsec. (b). Pub. L. 103-394 substituted semicolon for period
at end of par. (2) and inserted concluding provisions after par. (2).
1986--Subsec. (b). Pub. L. 99-554 amended subsec. (b) generally,
substituting ``approved by the United States trustee for the district''
for ``approved by the court for the district'' in par. (1)(B).
1984--Subsec. (c). Pub. L. 98-353 added subsec. (c).
1982--Subsec. (b)(2). Pub. L. 97-258 substituted ``section 9303 of
title 31'' for ``section 15 of title 6''.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under this title before Oct.
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under
section 101 of this title.
Effective Date of 1986 Amendment
Effective date and applicability of amendment by Pub. L. 99-554
dependent upon the judicial district involved, see section 302(d), (e)
of Pub. L. 99-554, set out as a note under section 581 of Title 28,
Judiciary and Judicial Procedure.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-353 effective with respect to cases filed 90
days after July 10, 1984, see section 552(a) of Pub. L. 98-353, set out
as a note under section 101 of this title.
Section Referred to in Other Sections
This section is referred to in title 28 section 586.