# § 1226. Payments
**(a)** Payments and funds received by the trustee shall be retained by the trustee until confirmation or denial of confirmation of a plan. If a plan is confirmed, the trustee shall distribute any such payment in accordance with the plan. If a plan is not confirmed, the trustee shall return any such payments to the debtor, after deducting—
**(1)** any unpaid claim allowed under section 503(b) of this title; and
**(2)** if a standing trustee is serving in the case, the percentage fee fixed for such standing trustee.
**(b)** Before or at the time of each payment to creditors under the plan, there shall be paid—
**(1)** any unpaid claim of the kind specified in section 507(a)(2) of this title; and
**1** if a standing trustee appointed under section 1202(c) [^1] of this title is serving in the case, the percentage fee fixed for such standing trustee under section 1202(d) [^1] of this title.
See References in Text note below.
**(c)** Except as otherwise provided in the plan or in the order confirming the plan, the trustee shall make payments to creditors under the plan.
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**Source Credit**: (Added and amended Pub. L. 99–554, title II, § 255, title III, § 302(f), Oct. 27, 1986, 100 Stat. 3111, 3124; Pub. L. 103–65, § 1, Aug. 6, 1993, 107 Stat. 311; Pub. L. 103–394, title V, § 501(d)(36), Oct. 22, 1994, 108 Stat. 4147; Pub. L. 105–277, div. C, title I, § 149(a), Oct. 21, 1998, 112 Stat. 2681–610; Pub. L. 106–5, § 1(1), (2), Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1, May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1, June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1, May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a), May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749; Pub. L. 109–8, title X, § 1001(a)(1), (c), title XV, § 1502(a)(9), Apr. 20, 2005, 119 Stat. 185, 186, 217.)
## Editorial Notes
### References in Text
Section 1202(c) and (d) of this title, referred to in subsec. (b)(2), was repealed by , and provisions relating to appointment of and fixing percentage fees for standing trustees are contained in section 586(b) and (e) of Title 28, Judiciary and Judicial Procedure, as amended by section 113(b), (c) of .
### Codification
For repeal of section effective , and subsequent reenactment of section, see note set out preceding .
### Amendments
2005—Subsec. (b)(1). , substituted “507(a)(2)” for “507(a)(1)”.
1994—Subsec. (b)(2). substituted “1202(c)” for “1202(d)” and “1202(d)” for “1202(e)”.
## Statutory Notes and Related Subsidiaries
### Effective Date of 2005 Amendment
Amendment by effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see , set out as a note under .
### Effective Date of 1994 Amendment
Amendment by effective , and not applicable with respect to cases commenced under this title before , see , set out as a note under .
### Effective Dates
Permanent reenactment of section effective , see , set out as a Repeal, Reenactment, and Termination of Chapter note under . For effective dates of section and amendments extending periods for which section was reenacted prior to permanent reenactment, see Effective Date and Effective Date of 1999, 2001, 2002, 2003, and 2004 Amendment notes set out under .