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a large number of trustees covered by a bond, the United States Trustee may consider reducing
the face amount of the bond below the sum of the individual trustee amounts.
7-2.2.2 Chapter 13 Trustees
Unless a group of standing trustees is included in a single bond, the minimum amount of the
blanket bond for the standing trustee is 150 percent of the average monthly bank balances for the
prior three months for all bank accounts, certificates of deposit, or other permissible investments
maintained by the trustee operation. The balances are to be determined from the bank records
and reviewed monthly by the standing trustee and the United States Trustee. The standing
trustee should discuss with the United States Trustee any significant increases in bank balances
or any anticipated increase in funds. If the average monthly bank balances are such that the
trustee's bond is less than 150 percent of those amounts, the standing trustee must confer with
the United States Trustee. Adjustments to the bond should be made only as approved by the
United States Trustee based upon significant increases or decreases in actual and projected bank
balances.
The amount of a blanket bond covering multiple trustees shall be set by the United States
Trustee after consultation with the standing trustees in the region. After approval of the amount
of the bond and the sufficiency of the surety, the original bond and any riders will be filed by the
United States Trustee with the court.
As soon as the standing trustee becomes aware of an incident that may give rise to a bond claim,
the standing trustee must notify in writing the United States Trustee and the bonding company.
The United States Trustee will assist the standing trustee with procedures to identify the extent
of the potential loss and any parties responsible. The standing trustee will provide to the United
States Trustee such information as the United States Trustee requires to perform this duty.
7-2.2.3 Chapter 12 Trustees
When a group of standing trustees is included in a single bond, the minimum amount of the
blanket bond for a chapter 12 trustee is 110 percent of the highest daily total bank balance
estimated by the trustee in the budget submitted for approval of percentage fee and maximum
compensation for the upcoming fiscal year. At a minimum, a quarterly review of the bond
amount must be performed and adjustments should be made at that time, based on significant
increases or decreases in projected receipts. The bond amount may not be increased or decreased
from the original amount set at the time of submission of the annual budget without the approval
of the United States Trustee.
7-2.2.4 Chapter 11 Trustees and Examiners
To qualify as a chapter 11 trustee, the trustee must post a bond in favor of the United States of
America within five days after selection. 11 U.S.C. § 322(a). The initial amount and
sufficiency of the bond is determined by the United States Trustee, 11 U.S.C. § 322(b)(2); it is
the trustee’s duty, however, to monitor the bond and ensure that it is maintained in an
appropriate amount throughout the case. The United States Trustee can assist the trustee in
obtaining a bond by providing contact information for bonding companies used by other trustees.
If the trustee wishes to obtain a bond from a different company, the trustee must ensure that the
company appears on Treasury Circular 570
, which lists those companies holding certificates of
authority as acceptable sureties on federal bonds. Only companies appearing on this list are
approved by the United States Trustee as sureties on trustee bonds.