How should the trustee allocate the bond premium?
The trustee may allocate the entire blanket bond premium to the estates with assets covered by the bond. This includes all chapter 7 asset cases and chapter 11 cases covered by the bond. The allocation methodology is determined by the United States Trustee, but the allocations are normally based on the funds on hand at a particular date. As a matter of course, when the trustee receives a chapter 7 operating case or a chapter 11 case, the trustee should confirm with the bonding company and United States Trustee, in writing, that the bond covers the case(s). Some blanket bonds specifically exclude these types of cases. (See Handbook pages 5-2 and 8-15.) Environmental Issues 5) On page 6-14, under Environmental Issues, the Handbook imposes a duty on the trustee to give immediate consideration to abandoning property of no value to the estate under 554(a) which may be hazardous to the health and safety of the general public after taking all precautions possible in view of the assets availab
