Document: 508 U.S. 464 113 S.Ct. 2187 124 L.Ed.2d 424 Donald Neal RAKE, et al., Petitionersv.William J. WADE, Trustee. No. 92-621. Argued March 22, 1993. Decided June 7, Syllabus * At the time they initiated separate Chapter 13 bankruptcy proceedings, petitioners, two pairs of debtors, and another married couple were in arrears on long-term promissory notes held by respondent Wade, which secured debtors' home mortgages did not provide for interest arrearages. The value residence owned each pair exceeded note's outstanding balance, making Wade an oversecured creditor. In their plans, debtors proposed to make all future payments due cure default paying off arrearages without interest. objected plan ground that he was entitled attorney's fees, but Bankruptcy Court overruled objections, District affirmed. Appeals reversed, holding § 506(b) Code postpetition other charges, even if mortgage instruments silent subject state law would require be paid. Held: is preconfirmation postconfirmation paid under petitioners' plans. Pp. ____. (a) Three interrelated provisions determine whether Section provides holders claims with unqualified right interest, regardless agreement giving rise claim United States v. Ron Pair Enterprises, Inc., 489 235, 241, 109 1026, 1030, 103 290, until a plan's confirmation date. 1322(b)(2) prohibits from modifying rights lenders, while 1322(b)(5) authorizes any defaults debt maintain life plan. Finally, 1325(a)(5) states "with respect allowed provided plan," may confirmed if, inter alia, holder retains lien, 1325(a)(5)(B)(i), property distributed account such less than claim's present dollar as date, 1325(a)(5)(B)(ii). (b) Under 506(b)'s clear language, That section directs claims, Pair, supra, at 245, parties have acknowledged accrues petition date confirmed. does operate exclusion 506(b). While it effectuate after effective dictate cure's terms. Specifically, gives no indication cured include otherwise available This construction effect both. (c) also 1325(a)(5). There support 1325(a)(5)(B)(ii) applies only been modified thus apply which, 1322(b), are exempt modification. plans essentially split Wade's into underlying simply "maintained," treated distinct within pursuant its repayment schedule. Thus, arrearages, part "provided for" Other containing phrase plan" claims. See Savings Assn. Texas Timbers Inwood Forest Associates, Ltd., 484 365, 371, 108 626, 630, 98 740 (1988). 968 F.2d 1036 (CA10 1992), THOMAS, J., delivered opinion unanimous Court. David A. Carpenter, Tulsa, OK, petitioners. Lawrence A.G. Johnson, respondent. Ronald Mann, Washington, DC, amicus curiae, special leave Justice THOMAS 1 case requires us decide who Code, 11 U.S.C. 1322(b)(5), must pay We conclude §§ Code. 2 Petitioners Linda Rake, petitioners Earnest Mary Yell, respondents Ronnie Rosetta Hannon1 three proceedings Northern Oklahoma. note assigned William trustee (hereinafter respondent). $5 charge missed payment Payment first principal debtors. event (now assignee) had declare remainder indebtedness payable foreclose property. Because balance corresponding notes, 3 directly notes. over terms Respondent plan, fees respondent's appealed Oklahoma, consolidated cases relating "curing defaults"—11 —"do alter contract between governing matters any, arrearage," allowing "improper," since it. App. Pet. Cert. A-24. 4 Tenth Circuit reversed. Hannon, (1992). court interpreted 290 (1989), entitles creditor charges "even paid." F.2d, 1042. relied Sixth Circuit's decision re Colegrove, 771 119 (1985), reached same result rested well Four Courts "cure" "modification" 1322(b) mortgagee arrearages.2 granted certiorari resolve conflict. 506 ----, 459, 121 367 II 5 Petitioners' mortgages3 establishing schedules those arrearages: 506(b), 6 103(a), "allowed" claims.4 we "unqualified" exists U.S., S.Ct., 1030. It generally recognized will accrue or Collier ¶ 506.05, p. 506-43, n. 5c (15th ed. 1993) Collier). concedes, his agrees, because "has creditor, . relevant plan." Brief Amicus Curiae 11, 7. Accord, Tr. Oral Arg. 24, 34. agree filing through 10, 13. 7 Two paragraphs here: 1322(b)(5). modify holders, protection lenders creating specific "no modification" exception lien debtor's residence.5 expressly debt, mortgage, during plan.6 curing maintenance "notwithstanding" 1322(b)(2)'s prohibition against modifications lenders. 8 final provision bearing this case—§ — one requirements satisfied before confirmed: (1) has accepted 1325(a)(5)(A); (2) debtor surrenders securing 1325(a)(5)(C); (3) claim, "the value, amount claim," unless accepts collateral guarantees including deferred cash satisfaction see 1325.06[4][b][ii], equal Petitioners, respondent, "[s]ection 1325(a)(5)(B) implies interest." Reply 5. 16-17; 11-12, 8. III 9 Although 1325(a)(5), argue do when cures Some courts construed so broadly render inapplicable mortgages. E.g., Landmark Financial Services Hall, 918 1150, 1153-1155 (CA4 1990). contend precisely what requires. 10 Turning concede holds includes arrearages7 " 'an ordinarily allowance 13.' (quoting Laguna, 944 542, 544 (CA9 1991) (footnote omitted), cert. denied, 503 112 1577, 118 219 (1992)). They argue, however, "operate[s] 506(b)," 9, "does proceedings," 1. negate suggest '[d]espite some broad language context [Chapter 13] cures.' 1154). interpretation comport provisions. extent collateral. "directs claims," 1033 (emphasis added), and, acknowledge, 4. owed plainly therefore, these Where statutory clear, our 'sole function enforce according terms.' 1030 Caminetti States, 242 470, 485, 37 192, 194, 61 L.Ed. 442 (1917)). Connecticut Nat. Bank Germain, ---- - 1146, 1149-50, 117 391 12 hand, "provide payments" certain nothing dictates cure. particular, avoid construing statute suspend supersede provision. To "deny[ing] statute," accord 'significance every word.' Ex parte Public New York, 278 101, 104, 49 43, 44, 73 202 (1928) Washington Market Co. Hoffman, 101 112, 115, 25 782 (1879)). Construing together, both, where mortgagee's oversecured, B virtually argument creditors "present [their] 5.8 contend, "applies reason 1322(b)(2), mortgages." Since "modified" turn appeals decisions legislative history indicates intended create 1325(a)(5)(B)." Terry, 780 894, 896-897 (CA11 1985). 544-545; 1154-1155; Appeal Capps, 836 773, 776 (CA3 1987). 14 refuted plain "each most natural reading "provid[e] "make "stipulate to" something See, e.g., American Heritage Dictionary 1053 (10th 1981) ("provide defined "to stipulation condition"). clearly portion As authorized claims—the debts "maintained" documents pendency cases, established them 1325(a)(5)(B)(ii).9 15 claim. (1988) (statutory often "clarified scheme—because terminology used elsewhere makes meaning permissible meanings produces substantive compatible rest law") (citation omitted). 1328(a), example, utilizes dealing discharge 13.10 commonly understood mean "makes provision" for, "deals with," "refers 1328.01, 1328-9. addition, 1328(a) unmistakably contemplates "provides allows regular "all dischargeable, then lists exceptions.11 One type yet excepted title." 1328(a)(1). If there element "allowed IV 16 hold plans.12 therefore affirm judgment Appeals. 17 So ordered. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber Co., 200 321, 337, 26 282, 287, 50 499. Hannons join certiorari, Court's Rule 12.4. 545 1991), (1992); 1990); 1987); 895-896 By "home mortgage" security residence. 1322(b)(2). states: "To recovery subsection section, greater shall reasonable costs, arose." provision, added "exceed collateral." 372, 631, "modify real residence, unsecured unaffected class claims." pending last due." "arrearages mortgage." 6, 22. When stream payments, receives value" total plus appropriate compensate decreased caused delayed payments. involves determination discount rate discounting back confirmation. 1325.06[4][b][iii][B]. issue presented case, express view cannot "cured" withstand scrutiny. reinstates creditor's contractual arising default—which included payable, accelerate possess property, collect rents generated 14-15, 29-30—are abrogated "modified." These fact modification holders. leads incongruous denied benefits prohibiting Congress could intended, view, afford provides: "As soon practicable completion approves written waiver executed order relief chapter, grant disallowed 502 title, except "(1) title; "(2) kind specified paragraph (5) (8) 523(a) 523(a)(9) "(3) restitution sentence conviction crime." 1328(a)(1) refers "debts" rather "liability claim." 101(12) (1988 ed., Supp. III). "and charges," misconstrued (1989). 21. disagree. "oversecured amounts past "other charges" referred.

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