11 U.S.C. § 322

Qualification of trustee

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 11 CasesGoogle Scholar

(a) Except as provided in subsection (b)(1), a person selected under section 701, 702, 703, 1104, 1163, 1183, 1202, or 1302 of this title to serve as trustee in a case under this title qualifies if before seven days after such selection, and before beginning official duties, such person has filed with the court a bond in favor of the United States conditioned on the faithful performance of such official duties.(b)(1) The United States trustee qualifies wherever such trustee serves as trustee in a case under this title.(2) The United States trustee shall determine—(A) the amount of a bond required to be filed under subsection (a) of this section; and(B) the sufficiency of the surety on such bond.(c) A trustee is not liable personally or on such trustee’s bond in favor of the United States for any penalty or forfeiture incurred by the debtor.(d) A proceeding on a trustee’s bond may not be commenced after two years after the date on which such trustee was discharged.(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2562; Pub. L. 98–353, title III, § 429, July 10, 1984, 98 Stat. 369; Pub. L. 99–554, title II, §§ 207, 257(d), Oct. 27, 1986, 100 Stat. 3098, 3114; Pub. L. 103–394, title V, § 501(d)(3), Oct. 22, 1994, 108 Stat. 4143; Pub. L. 111–16, § 2(2), May 7, 2009, 123 Stat. 1607; Pub. L. 116–54, § 4(a)(3), Aug. 23, 2019, 133 Stat. 1085.)Historical and Revision Noteslegislative statements

Section 322(a) is modified to include a trustee serving in a railroad reorganization under subchapter IV of chapter 11.

senate report no. 95–989

A trustee qualifies in a case by filing, within five days after selection, a bond in favor of the United States, conditioned on the faithful performance of his official duties. This section is derived from the Bankruptcy Act section 50b [section 78(b) of former title 11]. The court is required to determine the amount of the bond and the sufficiency of the surety on the bond. Subsection (c), derived from Bankruptcy Act section 50i [section 78(i) of former title 11], relieves the trustee from personal liability and from liability on his bond for any penalty or forfeiture incurred by the debtor. Subsection (d), derived from section 50m [section 78(m) of former title 11], fixes a two-year statute of limitations on any action on a trustee’s bond. Finally, subsection (e) dispenses with the bonding requirement for the United States trustee.

Editorial NotesAmendments

2019—Subsec. (a). Pub. L. 116–54 inserted “1183,” after “1163,”.

2009—Subsec. (a). Pub. L. 111–16 substituted “seven days” for “five days”.

1994—Subsec. (a). Pub. L. 103–394 substituted “1202, or 1302” for “1302, or 1202”.

1986—Subsec. (a). Pub. L. 99–554, § 257(d), inserted reference to section 1202 of this title.

Pub. L. 99–554, § 207(1), substituted “Except as provided in subsection (b)(1), a person” for “A person”.

Subsec. (b). Pub. L. 99–554, § 207(2), amended subsec. (b) generally, adding par. (1), designating existing provisions as par. (2), substituting “The United States trustee” for “The court”, “(A) the amount” for “(1) the amount”, and “(B) the sufficiency” for “(2) the sufficiency”.

1984—Subsec. (b)(1). Pub. L. 98–353 inserted “required to be”.

Statutory Notes and Related SubsidiariesEffective Date of 2019 Amendment

Amendment by Pub. L. 116–54 effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as a note under section 101 of this title.

Effective Date of 2009 Amendment

Amendment by Pub. L. 111–16 effective Dec. 1, 2009, see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.

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 section 207 of 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.

Amendment by section 257 of Pub. L. 99–554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554.

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.

Notes of Decisions

Cited in 70 cases (5 in the last 5 years), 1979–2026 · leading case: Liberty Mut. Ins. v. United States Ex Rel. Lamesa Nat'l Bank (In Re Schooler), 725 F.3d 498 (5th Cir. 2013).

Sort: Relevance Newest Treatment

Liberty Mut. Ins. v. United States Ex Rel. Lamesa Nat'l Bank (In Re Schooler), 725 F.3d 498 (5th Cir. 2013). · cites it 30× “As relevant, the bond provides that the Trustee, “as [principal, and Liberty Mutual Insurance Company, as surety, are held and firmly bound unto the United States,” in accordance with 11 U.S.C. § 322 (a), jointly and severally “for the faithful performance of [the principal’s]…”

Stanwyck v. United States, 127 Fed. Cl. 308 (Fed. Cl. 2016). · cites it 2× “Upon a close review of plaintiffs complaint and its attachment, plaintiffs claim seems to be that all bankruptcy judges and trustees have, since 1992, failed to satisfy the bonding requirements under 11 U.S.C. § 322 (a) and have thus improperly received compensation for their…”

Kashani v. Fulton (In Re Kashani), 190 B.R. 875 (9th Cir. BAP 1995). · cites it 2× “For instance, 11 U.S.C. § 322 (d) states that a proceeding on a trustee’s bond may be commenced for up to two years after the trustee is discharged.”

Oles Grain Co. v. Safeco Ins. Co. of Am., 221 B.R. 371 (N.D. Tex. 1998). · cites it 9× “This bankruptcy appeal presents a question of first impression for an Article III court concerning 11 U.S.C. § 322 (d) of the United States Bankruptcy Code, which provides: “A proceeding on a trustee’s bond may not be commenced after two years after the date on which such…”

Woods v. Kenan, 173 F.3d 770 (10th Cir. 1999). · cites it 2× “They argue that the bankruptcy court erred by not granting their request under 11 U.S.C. § 322 (a) to require a $200,000 bond of Mr.”

In Re: Sunterra Corp., Debtor. Rci Tech. Corp., Formerly Known as Resort Comput. Corp. v. Sunterra Corp., 361 F.3d 257 (4th Cir. 2004). “1996) (citing 11 U.S.C. §§ 322 , 1101(1), 1104, 1107). 3 .”

Wisdom v. United States Tr. Prog., 266 F. Supp. 3d 93 (D.D.C. 2017). “See 11 U.S.C. § 322 (a). For reasons the Agency fails to explain, Gugi-no’s bond was never filed with the court.”

Ad Hoc Grp. of Vitro Noteholders v. Vitro S.A.B. De C.V., 701 F.3d 1031 (5th Cir. 2012). “Under Chapter 11, the term "debtor in possession” refers to the debtor itself, unless an entity is serving as the debtor’s trustee pursuant to 11 U.S.C. § 322 . "A debtor in possession stands in the shoes of the bankruptcy trustee, generally having the same rights, powers,…”

In Re Christina Thompson, Debtor. Sanford A. Kowal v. Charles M. Malkemus, 965 F.2d 1136 (1st Cir. 1992). “See Bankruptcy Code § 322, 11 U.S.C. § 322 ; see also In re San Juan Hotel Corp.”

United States Ex Rel. Century Nat'l Bank v. Nigro (In Re Louis Rosenberg Auto Parts, Inc.), 209 B.R. 668 (Bankr. W.D. Pa. 1997). · cites it 5× “Century argues that 11 U.S.C. § 322 (d) provides the sole relevant limitations period in an action upon a bankruptcy trustee’s bond.”

In Re Tyrone F. Conner Corp., Inc., 140 B.R. 771 (Bankr. E.D. Cal. 1992). · cites it 3× “11 U.S.C. § 322 (b)(1) automatically qualifies the UST to serve as a case trustee.”

United States Ex Rel. Oles v. Safeco Ins. Co. of Am. (In Re Oles Grain Co.), 206 B.R. 126 (Bankr. N.D. Tex. 1997). · cites it 11× “Issue At the hearing on October 3, 1996, the parties argued the Motion, and the Court took the matter under advisement for the purpose of deciding whether the Plaintiffs’ claims are barred by limitations or whether 11 U.S.C. § 322 (d) extends the applicable state statute of…”

Show all 70 citing cases →

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.