11 U.S.C. § 345 — Money of estates

submitted 48 years ago by Pub. L. 95-598 to r/title-11-BANKRUPTCY · 226 words · no verdicts yet

in plain englishAI-generated · not legal advice

A bankruptcy trustee must deposit or invest estate money to earn the best safe return. For most deposits or investments, the trustee must get a bond or post securities protecting the money. A court can excuse this requirement, and the institution holding the money may accept these deposits.

(a) A trustee handling a bankruptcy case must deposit or invest the estate's money in a way that earns the highest reasonable safe return, considering how safe the deposit or investment is. (b) Unless the deposit or investment is insured, guaranteed, or backed by the full faith and credit of the United States or one of its agencies, the trustee must require the institution holding the money to provide either: (1) a bond — payable to the United States, backed by a corporate surety approved by the U.S. trustee for that district, and conditioned on properly accounting for the money and any return on it, promptly repaying the money and return, and faithfully performing its duties as a depository; or (2) securities of the kind listed in section 9303 of title 31 — unless the court orders otherwise for good reason. (c) An institution holding this money is allowed to deposit or invest it as this section requires.

the actual law source: uscode.house.gov ↗public domain

(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 this section.

Source credit: (Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2565; Pub. L. 97–258, § 3(c), Sept. 13, 1982, 96 Stat. 1064; Pub. L. 98–353, title III, § 437, July 10, 1984, 98 Stat. 370; Pub. L. 99–554, title II, § 214, Oct. 27, 1986, 100 Stat. 3099; Pub. L. 103–394, title II, § 210, Oct. 22, 1994, 108 Stat. 4125.)

history & why it existsrecord from the source credit

1978Enacted · Pub. L. 95-598 · 92 Stat. 2565
1982Amended · Pub. L. 97-258 · 96 Stat. 1064
1984Amended · Pub. L. 98-353 · 98 Stat. 370
1986Amended · Pub. L. 99-554 · 100 Stat. 3099
1994Amended · Pub. L. 103-394 · 108 Stat. 4125

A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-598 on 1978-11-06.

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