§ 586. — Duties; supervision by Attorney General.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 28USC586]
TITLE 28--JUDICIARY AND JUDICIAL PROCEDURE
PART II--DEPARTMENT OF JUSTICE
CHAPTER 39--UNITED STATES TRUSTEES
Sec. 586. Duties; supervision by Attorney General
(a) Each United States trustee, within the region for which such
United States trustee is appointed, shall--
(1) establish, maintain, and supervise a panel of private
trustees that are eligible and available to serve as trustees in
cases under chapter 7 of title 11;
(2) serve as and perform the duties of a trustee in a case under
title 11 when required under title 11 to serve as trustee in such a
case;
(3) supervise the administration of cases and trustees in cases
under chapter 7, 11, 12, or 13 of title 11 by, whenever the United
States trustee considers it to be appropriate--
(A)(i) reviewing, in accordance with procedural guidelines
adopted by the Executive Office of the United States Trustee
(which guidelines shall be applied uniformly by the United
States trustee except when circumstances warrant different
treatment), applications filed for compensation and
reimbursement under section 330 of title 11; and
(ii) filing with the court comments with respect to such
application and, if the United States Trustee considers it to be
appropriate, objections to such application.\1\
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(B) monitoring plans and disclosure statements filed in
cases under chapter 11 of title 11 and filing with the court, in
connection with hearings under sections 1125 and 1128 of such
title, comments with respect to such plans and disclosure
statements;
(C) monitoring plans filed under chapters 12 and 13 of title
11 and filing with the court, in connection with hearings under
sections 1224, 1229, 1324, and 1329 of such title, comments with
respect to such plans;
(D) taking such action as the United States trustee deems to
be appropriate to ensure that all reports, schedules, and fees
required to be filed under title 11 and this title by the debtor
are properly and timely filed;
(E) monitoring creditors' committees appointed under title
11;
(F) notifying the appropriate United States attorney of
matters which relate to the occurrence of any action which may
constitute a crime under the laws of the United States and, on
the request of the United States attorney, assisting the United
States attorney in carrying out prosecutions based on such
action;
(G) monitoring the progress of cases under title 11 and
taking such actions as the United States trustee deems to be
appropriate to prevent undue delay in such progress; and
(H) monitoring applications filed under section 327 of title
11 and, whenever the United States trustee deems it to be
appropriate, filing with the court comments with respect to the
approval of such applications;
(4) deposit or invest under section 345 of title 11 money
received as trustee in cases under title 11;
(5) perform the duties prescribed for the United States trustee
under title 11 and this title, and such duties consistent with title
11 and this title as the Attorney General may prescribe; and
(6) make such reports as the Attorney General directs.
(b) If the number of cases under chapter 12 or 13 of title 11
commenced in a particular region so warrants, the United States trustee
for such region may, subject to the approval of the Attorney General,
appoint one or more individuals to serve as standing trustee, or
designate one or more assistant United States trustees to serve in cases
under such chapter. The United States trustee for such region shall
supervise any such individual appointed as standing trustee in the
performance of the duties of standing trustee.
(c) Each United States trustee shall be under the general
supervision of the Attorney General, who shall provide general
coordination and assistance to the United States trustees.
(d) The Attorney General shall prescribe by rule qualifications for
membership on the panels established by United States trustees under
paragraph (a)(1) of this section, and qualifications for appointment
under subsection (b) of this section to serve as standing trustee in
cases under chapter 12 or 13 of title 11. The Attorney General may not
require that an individual be an attorney in order to qualify for
appointment under subsection (b) of this section to serve as standing
trustee in cases under chapter 12 or 13 of title 11.
(e)(1) The Attorney General, after consultation with a United States
trustee that has appointed an individual under subsection (b) of this
section to serve as standing trustee in cases under chapter 12 or 13 of
title 11, shall fix--
(A) a maximum annual compensation for such individual consisting
of--
(i) an amount not to exceed the highest annual rate of basic
pay in effect for level V of the Executive Schedule; and
(ii) the cash value of employment benefits comparable to the
employment benefits provided by the United States to individuals
who are employed by the United States at the same rate of basic
pay to perform similar services during the same period of time;
and
(B) a percentage fee not to exceed--
(i) in the case of a debtor who is not a family farmer, ten
percent; or
(ii) in the case of a debtor who is a family farmer, the sum
of--
(I) not to exceed ten percent of the payments made under
the plan of such debtor, with respect to payments in an
aggregate amount not to exceed $450,000; and
(II) three percent of payments made under the plan of
such debtor, with respect to payments made after the
aggregate amount of payments made under the plan exceeds
$450,000;
based on such maximum annual compensation and the actual, necessary
expenses incurred by such individual as standing trustee.
(2) Such individual shall collect such percentage fee from all
payments received by such individual under plans in the cases under
chapter 12 or 13 of title 11 for which such individual serves as
standing trustee. Such individual shall pay to the United States
trustee, and the United States trustee shall deposit in the United
States Trustee System Fund--
(A) any amount by which the actual compensation of such
individual exceeds 5 per centum upon all payments received under
plans in cases under chapter 12 or 13 of title 11 for which such
individual serves as standing trustee; and
(B) any amount by which the percentage for all such cases
exceeds--
(i) such individual's actual compensation for such cases, as
adjusted under subparagraph (A) of paragraph (1); plus
(ii) the actual, necessary expenses incurred by such
individual as standing trustee in such cases. Subject to the
approval of the Attorney General, any or all of the interest
earned from the deposit of payments under plans by such
individual may be utilized to pay actual, necessary expenses
without regard to the percentage limitation contained in
subparagraph (d)(1)(B) of this section.
(Added Pub. L. 95-598, title II, Sec. 224(a), Nov. 6, 1978, 92 Stat.
2663; amended Pub. L. 99-554, title I, Sec. 113, Oct. 27, 1986, 100
Stat. 3091; Pub. L. 101-509, title V, Sec. 529 [title I, Sec. 110(a)],
Nov. 5, 1990, 104 Stat. 1427, 1452; Pub. L. 103-394, title II,
Sec. 224(a), title V, Sec. 502, Oct. 22, 1994, 108 Stat. 4130, 4147.)
References in Text
Level V of the Executive Schedule, referred to in subsec.
(e)(1)(A)(i), is set out in section 5316 of Title 5, Government
Organization and Employees.
Codification
Section 408(c) of Pub. L. 95-598, as amended, which provided for the
repeal of this section and the deletion of any references to United
States Trustees in this title at a prospective date, was repealed by
section 307(b) of Pub. L. 99-554. See note set out preceding section 581
of this title.
Amendments
1994--Subsec. (a)(3). Pub. L. 103-394 inserted ``12,'' after ``11,''
in introductory provisions and amended subpar. (A) generally. Prior to
amendment, subpar. (A) read as follows: ``monitoring applications for
compensation and reimbursement filed under section 330 of title 11 and,
whenever the United States trustee deems it to be appropriate, filing
with the court comments with respect to any of such applications;''.
1990--Subsec. (e)(1)(A). Pub. L. 101-509 amended subpar. (A)
generally. Prior to amendment, subpar. (A) read as follows: ``a maximum
annual compensation for such individual, not to exceed the annual rate
of basic pay in effect for step 1 of grade GS-16 of the General Schedule
prescribed under section 5332 of title 5; and''.
1986--Subsec. (a). Pub. L. 99-554, Sec. 113(a)(1), substituted ``the
region for which such United States trustee is appointed'' for ``his
district'' in introductory text.
Subsec. (a)(3). Pub. L. 99-554, Sec. 113(a)(2), substituted ``title
11 by, whenever the United States trustee considers it to be
appropriate--'' for ``title 11;'' and added subpars. (A) to (H).
Subsec. (a)(5). Pub. L. 99-554, Sec. 113(a)(3), inserted ``and this
title, and such duties consistent with title 11 and this title as the
Attorney General may prescribe'' after ``title 11''.
Subsec. (b). Pub. L. 99-554, Sec. 113(b), amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: ``If the
number of cases under chapter 13 of title 11 commenced in a particular
judicial district so warrant, the United States trustee for such
district may, subject to the approval of the Attorney General, appoint
one or more individuals to serve as standing trustee, or designate one
or more assistant United States trustee, in cases under such chapter.
The United States trustee for such district shall supervise any such
individual appointed as standing trustee in the performance of the
duties of standing trustee.''
Subsec. (d). Pub. L. 99-554, Sec. 113(c), amended subsec. (d)
generally. Prior to amendment, subsec. (d) read as follows: ``The
Attorney General shall prescribe by rule qualifications for membership
on the panels established by United States trustees under subsection
(a)(1) of this section, and qualifications for appointment under
subsection (b) of this section to serve as standing trustee in cases
under chapter 13 of title 11. The Attorney General may not require that
an individual be an attorney in order to qualify for appointment under
subsection (b) of this section to serve as standing trustee in cases
under chapter 13 of title 11.''
Subsec. (e). Pub. L. 99-554, Sec. 113(c), amended subsec. (e)
generally. Prior to amendment, subsec. (e) read as follows:
``(1) The Attorney General, after consultation with a United States
trustee that has appointed an individual under subsection (b) of this
section to serve as standing trustee in cases under chapter 13 of title
11, shall fix--
``(A) a maximum annual compensation for such individual, not to
exceed the lowest annual rate of basic pay in effect for grade GS-16
of the General Schedule prescribed under section 5332 of title 5;
and
``(B) a percentage fee, not to exceed ten percent, based on such
maximum annual compensation and the actual, necessary expenses
incurred by such individual as standing trustee.
``(2) Such individual shall collect such percentage fee from all
payments under plans in the cases under chapter 13 of title 11 for which
such individual serves as standing trustee. Such individual shall pay to
the United States trustee, and the United States trustee shall pay to
the Treasury--
``(A) any amount by which the actual compensation of such
individual exceeds five percent upon all payments under plans in
cases under chapter 13 of title 11 for which such individual serves
as standing trustee; and
``(B) any amount by which the percentage for all such cases
exceeds--
``(i) such individual actual compensation for such cases, as
adjusted under subparagraph (A) of this paragraph; plus
``(ii) the actual, necessary expenses incurred by such
individual as standing trustee in such cases.''
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under Title 11, Bankruptcy,
before Oct. 22, 1994, see section 702 of Pub. L. 103-394, set out as a
note under section 101 of Title 11.
Effective Date of 1990 Amendment
Amendment by Pub. L. 101-509 effective on such date as the President
shall determine, but not earlier than 90 days, and not later than 180
days, after Nov. 5, 1990, see section 529 [title III, Sec. 305] of Pub.
L. 101-509, set out as a note under section 5301 of Title 5, Government
Organization and Employees.
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 this title.
Application to All Standing Trustees
Section 529 [title I, Sec. 110(b)] of Pub. L. 101-509 provided that:
``The amendment made by subsection (a) [amending this section] shall
apply to any trustee to whom the provisions of section 302(d)(3) of the
Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy
Act of 1986 (Public Law 99-54 [Pub. L. 99-554]; 100 Stat. 3121) [set out
in an Effective Date of 1986 Amendment note under section 581 of this
title] apply.''
Section Referred to in Other Sections
This section is referred to in title 11 sections 326, 589a, 701,
703, 1202, 1302, 1326.
