Source: https://supreme.justia.com/cases/federal/us/489/235/
Timestamp: 2019-04-24 16:53:27+00:00

Document:
United States v. Ron Pair Enterprises, Inc.
After respondent filed a petition under Chapter 11 of the Bankruptcy Code of 1978 (Code), the Government filed proof of a prepetition claim for unpaid withholding and social security taxes, penalties, and prepetition interest. The claim was perfected through a tax lien on property owned by respondent. Respondent's ensuing reorganization plan provided for full payment of the claim, but did not provide for post-petition interest. The Government objected, contending that § 506(b) of the Code -- which allows the holder of an oversecured claim to recover, in addition to the prepetition amount of the claim, "interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose" -- allowed recovery of post-petition interest, since the property securing its claim had a value greater than the amount of the principal debt. The Bankruptcy Court overruled this objection, but the District Court reversed. The Court of Appeals reversed the District Court, holding that § 506(b) codified the pre-Code standard that allowed post-petition interest on an oversecured claim only where the lien on the claim was consensual in nature.
Held: Section 506(b) entitles a creditor to receive post-petition interest on a nonconsensual oversecured claim allowed in a bankruptcy proceeding. Pp. 489 U. S. 238-249.
"there shall be allowed to the holder of such claim, interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose"
entitles the holder of an oversecured claim to post-petition interest and, in addition, the holder of a secured claim pursuant to an agreement the right to the specified fees, costs, and charges. Recovery of post-petition interest is unqualified, whereas recovery of those fees, costs, and charges is allowed only if they are reasonable and provided for in the agreement under which the claim arose. Therefore, in the absence of an agreement, post-petition interest is the only added recovery available. This reading of § 506(b) is also mandated by its grammatical structure. Since the phrase "interest on such claim" is set aside by commas, and separated from the reference to fees, costs, and charges by the conjunctive words "and any," that phrase stands independent of the language that follows. Pp. 489 U. S. 241-242.
(b) Allowing post-petition interest on nonconsensual oversecured liens does not contravene the intent of the Code's framers, nor does it conflict with any other section of the Code or any important state or federal interest. The legislative history does not suggest a contrary view. Pp. 489 U. S. 242-243.
(c) There is no significant reason why Congress would have intended, or any policy reason would compel, that consensual and nonconsensual liens be treated differently in allowing post-petition interest. Section 506(b)'s language clearly directs that post-petition interest be paid on all oversecured claims. Midlantic National Bank v. New Jersey Dept. of Environmental Protection, 474 U. S. 494, and Kelly v. Robinson, 479 U. S. 36, distinguished. Pp. 489 U. S. 243-246.
(d) The pre-Code practice of denying post-petition interest to holders of nonconsensual liens, while allowing it to holders of consensual liens, was an exception to the exception for oversecured claims from the rule that the running of interest ceased when a bankruptcy petition was filed, and was recognized by only a few courts and often depended on particular circumstances. The fact that this Court has never clearly acknowledged or relied upon the refusal of some Courts of Appeals to apply the oversecured claim exception to an oversecured federal tax claim counsels against concluding that such limitation was well recognized. Also arguing against considering this limitation a clear rule are the facts that all cases that limited the exception were tax-lien cases, that the "rule" has never been extended to other forms of nonconsensual liens, and that, in the few cases where it was recognized, it was only a guide to the bankruptcy trustee's exercise of his powers in the particular circumstances of the case. Pp. 489 U. S. 246-249.
In this case, we must decide the narrow statutory issue whether § 506(b) of the Bankruptcy Code of 1978, 11 U.S.C. § 506(b) (1982 ed., Supp. IV), entitles a creditor to receive post-petition interest on a nonconsensual oversecured claim allowed in a bankruptcy proceeding. We conclude that it does, and we therefore reverse the judgment of the Court of Appeals.
Respondent Ron Pair Enterprises, Inc., filed a petition for reorganization under Chapter 11 of the Bankruptcy Code on May 1, 1984, in the United States Bankruptcy Court for the Eastern District of Michigan. The Government filed timely proof of a prepetition claim of $52,277.93, comprised of assessments for unpaid withholding and Social Security taxes, penalties, and prepetition interest. The claim was perfected through a tax lien on property owned by respondent. Respondent's First Amended Plan of Reorganization, filed October 1, 1985, provided for full payment of the prepetition claim, but did not provide for post-petition interest on that claim. The Government filed a timely objection, claiming that § 506(b) allowed recovery of post-petition interest, since the property securing the claim had a value greater than the' amount of the principal debt. At the Bankruptcy Court hearing, the parties stipulated that the claim was oversecured, but the court subsequently overruled the Government's objection. The Government appealed to the United States District Court for the Eastern District of Michigan. That court reversed the Bankruptcy Court's judgment, concluding that the plain language of § 506(b) entitled the Government to post-petition interest.
the context in which the provision was drafted and therefore the language itself." Id. at 370. The court went on to note that, under pre-Code law, the general rule was that post-petition interest on an oversecured prepetition claim was allowable only where the lien was consensual in nature. In light of this practice, and of the lack of any legislative history evincing an intent to change the standard, the court held that § 506(b) codified the preexisting standard, and that post-petition interest was allowable only on consensual claims. Because this result was in direct conflict with the view of the Court of Appeals for the Fourth Circuit, see Best Repair Co. v. United States, 789 F.2d 1080 (CA4 1986), and with the views of other courts, [Footnote 1] we granted certiorari, 485 U.S. 958 (1988), to resolve the conflict.
holder of an oversecured claim to recover, in addition to the prepetition amount of the claim, "interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose."
The question before us today arises because there are two types of secured claims: (1) voluntary (or consensual) secured claims, each created by agreement between the debtor and the creditor and called a "security interest" by the Code, 11 U.S.C. § 101(45) (1982 ed., Supp. IV), and (2) involuntary secured claims, such as a judicial or statutory lien, see 11 U.S.C. §§ 101(32) and (47) (1982 ed., Supp. IV), which are fixed by operation of law and do not require the consent of the debtor. The claim against respondent's estate was of this latter kind. Prior to the passage of the 1978 Code, some Courts of Appeals drew a distinction between the two types for purposes of determining post-petition interest. The question we must answer is whether the 1978 Code recognizes and enforces this distinction, or whether Congress intended that all oversecured claims be treated the same way for purposes of post-petition interest.
need for a court to inquire beyond the plain language of the statute.
The task of resolving the dispute over the meaning of § 506(b) begins where all such inquiries must begin: with the language of the statute itself. Landreth Timber Co. v. Landreth, 471 U. S. 681, 471 U. S. 685 (1985). In this case, it is also where the inquiry should end, for where, as here, the statute's language is plain, "the sole function of the courts is to enforce it according to its terms." Caminetti v. United States, 242 U. S. 470, 242 U. S. 485 (1917). The language before us expresses Congress' intent -- that post-petition interest be available -- with sufficient precision so that reference to legislative history and to pre-Code practice is hardly necessary.
"[T]here shall be allowed to the holder of such claim, interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose."
"Such claim" refers to an oversecured claim. The natural reading of the phrase entitles the holder of an oversecured claim to post-petition interest and, in addition, gives one having a secured claim created pursuant to an agreement the right to reasonable fees, costs, and charges provided for in that agreement. Recovery of post-petition interest is unqualified. Recovery of fees, costs, and charges, however, is allowed only if they are reasonable and provided for in the agreement under which the claim arose. Therefore, in the absence of an agreement, post-petition interest is the only added recovery available.
"rare cases [in which] the literal application of a statute will produce a result demonstrably at odds with the intentions of its drafters."
nonconsensual oversecured liens does not contravene the intent of the framers of the Code. Allowing such interest does not conflict with any other section of the Code, or with any important state or federal interest, nor is a contrary view suggested by the legislative history. [Footnote 6] Respondent has not articulated, nor can we discern, any significant reason why Congress would have intended, or any policy reason would compel, that the two types of secured claims be treated differently in allowing post-petition interest.
Respondent urges that pre-Code practice drew a distinction between consensual and nonconsensual liens for the purpose of determining entitlement to post-petition interest, and that Congress' failure to repudiate that distinction requires us to enforce it. It is respondent's view, as it was the view of the Court of Appeals, that Midlantic National Bank v. New Jersey Dept. of Environmental Protection, 474 U. S. 494 (1986), and Kelly v. Robinson, 479 U. S. 36 (1986), so require. We disagree.
to dispose of property could be limited in order "to protect legitimate state or federal interests." Id. at 474 U. S. 500. But we did not rest solely, or even primarily, on a presumption of continuity with pre-Code practice. Rather, we concluded that a contrary result would render abandonment doctrine inconsistent with other provisions of the Code itself, which embody the principle that "the trustee is not to have carte blanche to ignore nonbankruptcy law." Id. at 474 U. S. 502. We also recognized that the outcome sought would be not only a departure from pre-Code practice, but also "an extraordinary exemption from nonbankruptcy law," id. at 474 U. S. 501, requiring some clearer expression of congressional intent. We relied as well on Congress' repeated emphasis in environmental legislation "on its goal of protecting the environment against toxic pollution.'" Id. at 474 U. S. 505, quoting Chemical Manufacturers Assn. v. Natural Resources Defense Council, Inc., 470 U. S. 116, 470 U. S. 143 (1985). To put it simply, we looked to pre-Code practice for interpretive assistance, because it appeared that a literal application of the statute would be "demonstrably at odds with the intentions of its drafters." Griffin v. Oceanic Contractors, Inc., 458 U.S. at 458 U. S. 571.
"the States' interest in administering their criminal justice systems free from federal interference is one of the most powerful of the considerations that should influence a court considering equitable types of relief."
as practicable, Congress expressly chose to create that alleged tension. There is no reason to suspect that Congress did not mean what the language of the statute says.
But even if we saw the need to turn to pre-Code practice in this case, it would be of little assistance. The practice of denying post-petition interest to the holders of nonconsensual liens, while allowing it to holders of consensual liens, was an exception to an exception, recognized by only a few courts and often dependent on particular circumstances. It was certainly not the type of "rule" that we assume Congress was aware of when enacting the Code; nor was it of such significance that Congress would have taken steps other than enacting statutory language to the contrary.
There was, indeed, a pre-Code rule that the running of interest ceased when a bankruptcy petition was filed. See Sexton v. Dreyfus, 219 U. S. 339, 219 U. S. 344 (1911). Two exceptions to this rule had been recognized under pre-Code practice. The first allowed post-petition interest when the debtor ultimately proved to be solvent; the second allowed dividends and interest earned by securities held by the creditor as collateral to be applied to post-petition interest. See City of New York v. Saper, 336 U. S. 328, 336 U. S. 330, n. 7 (1949). Neither of these exceptions would be relevant to this case. A third exception was of more doubtful provenance: an exception for oversecured claims. At least one Court of Appeals refused to apply this exception, United States v. Harrington, 269 F.2d 719, 722 (CA4 1959), and there was some uncertainty among courts which did recognize it as to whether this Court ever had done so. United States v. Bass, 271 F.2d 129, 131, n. 3 (CA9 1959); but see Vanston Bondholders Protective Committee v. Green, 329 U. S. 156, 329 U. S. 159 (1946).
claim exception to an oversecured federal tax claim. See United States v. Harrington, 269 F.2d at 722-723 (holding that, even if there were a general exception for oversecured claims, it would not apply to tax liens); United States v. Bass, 271 F.2d at 132; In re Kerber Packing Co., 276 F.2d 245, 247-248 (CA7 1960); see also In re Boston and Maine Corp., 719 F.2d 493, 496 (CA1 1983) (municipal property tax claim), cert. denied sub nom. City of Cambridge v. Meserve, 466 U.S. 938 (1984). But see In re Parchem, 166 F.Supp. 724, 730 (Minn.) (allowing post-petition interest on tax claim), appeal dism'd upon stipulation, 261 F.2d 839 (CA8 1958); In re Ross Nursing Home, 2 B.R. 496, 499-500 (Bkrtcy., EDNY 1980) (same). It is this refusal to apply the exception that the Court of Appeals thought constituted a well-established judicially created rule.
articulated in these cases never was extended to other forms of nonconsensual liens. Obviously, there is no way to read § 506(b) as allowing post-petition interest on all oversecured claims except claims based on unpaid taxes. For this reason, the statute Congress wrote is simply not subject to a reading that would harmonize it with the supposed pre-Code rule.
"the touchstone of each decision on allowance of interest in bankruptcy . . . has been a balance of equities between creditor and creditor or between creditors and the debtor."
"are not rigid doctrinal categories. Rather, they are flexible guidelines which have been developed by the courts in the exercise of their equitable powers in insolvency proceedings."
"codif[y] creditors' rights more clearly than the case law . . . [by] defin[ing] the protections to which a secured creditor is entitled, and the means through which the court may grant that protection."
not Congress took notice of the pre-Code standard, it acted with sufficient clarity in enacting the statute.
Most bankruptcy courts interpreting § 506(b) have permitted the holder of an oversecured claim to recover post-petition interest. These courts have considered both state and federal tax liens, see, e.g., In re Brandenburg, 71 B.R. 719 (SD 1987); In re Busone, 71 B.R. 201 (EDNY 1987); In re Gilliland, 67 B.R. 410 (ND Tex.1986); In re Hoffman, 28 B.R. 503 (Md.1983), and private nonconsensual liens, such as judicial and mechanic's liens, see, e.g., In re Charter Co., 63 B.R. 568 (MD Fla.1986); In re Romano, 51 B.R. 813 (MD Fla.1985); In re Morrissey, 37 B.R. 571 (ED Va.1984). One other Court of Appeals and a leading commentator have taken the position that § 506(b) codifies pre-Code law, and distinguishes between consensual and nonconsensual liens in determining the allowance of post-petition interest. See In re Newbury Cafe, Inc., 841 F.2d 20 (CA1 1988), cert. pending, No. 87-1784; 3 Collier on Bankruptcy ¦ 506.05, p. 506-41, and n. 5b (15th ed.1988).
"(a) An allowed claim of a creditor secured by a lien on property in which the estate has an interest, or that is subject to setoff under section 553 of this title, is a secured claim to the extent of the value of such creditor's interest in the estate's interest in such property, or to the extent of the amount subject to setoff, as the case may be, and is an unsecured claim to the extent that the value of such creditor's interest or the amount so subject to setoff is less than the amount of such allowed claim. Such value should be determined in light of the purpose of the valuation and of the proposed disposition or use of such property, and in conjunction with any hearing on such disposition or use or on a plan affecting such creditor's interest."
"(b) To the extent that an allowed secured claim is secured by property the value of which, after any recovery under subsection (c) of this section, is greater than the amount of such claim, there shall be allowed to the holder of such claim, interest on such claim, and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose."
"(c) The trustee may recover from property securing an allowed secured claim the reasonable, necessary costs and expenses of preserving, or disposing of, such property to the extent of any benefit to the holder of such claim."
"(d) To the extent that a lien secures a claim against the debtor that is not an allowed secured claim, such lien is void, unless -- "
"(1) such claim was disallowed only under section 502(b)(5) or 502(e) of this title; or"
"(2) such claim is not an allowed secured claim due only to the failure of any entity to file a proof of such claim under section 501 of this title."
11 U.S.C. § 506 (1982 ed. and Supp. IV).
Thus, a $100,000 claim, secured by a lien on property of a value of $60,000, is considered to be a secured claim to the extent of $60,000, and to be an unsecured claim for $40,000. See 3 Collier on Bankruptcy ¦ 506.04, p. 506-15 (15th ed.1988) ("[S]ection 506(a) requires a bifurcation of a partially secured' or `undersecured' claim into separate and independent secured claim and unsecured claim components").
"there shall be allowed to the holder of such claim, as provided for under the agreement under which such claim arose, interest on such claim and any reasonable fees, costs or charges."
"there shall be allowed to the holder of such claim, interest on such claim and reasonable fees, costs, and charges provided for under the agreement under which such claim arose."
It seems to us that the interpretation adopted by the Court of Appeals in this case not only requires that the statutory language be read in an unnatural way, but that it is inconsistent with the remainder of § 506, and with terminology used throughout the Code. Adopting the Court of Appeals' view would mean that § 506(b) is operative only in regard to consensual liens, i.e., that only a holder of an oversecured claim arising from an agreement is entitled to any added recovery. But the other portions of § 506 make no distinction between consensual and nonconsensual liens. Moreover, had Congress intended § 506(b) to apply only to consensual liens, it would have clarified its intent by using the specific phrase, "security interest," which the Code employs to refer to liens created by agreement. 11 U.S.C. § 101(45) (1982 ed., Supp. IV). When Congress wanted to restrict the application of a particular provision of the Code to such liens, it used the term "security interest." See, e.g., 11 U.S.C. §§ 362(b)(12) and (13), 363(a), 547(c)(3)-(5), 552, 752(c), 1110(a), 1168(a), 1322(b)(2) (1982 ed. and Supp. IV).
See H.R. 6, 95th Cong., 1st Sess. (1977); H.R. 8200, 95th Cong., 1st Sess. (1977); S. 2266, 95th Cong., 1st Sess. (1977). Because the final version of the statute contained the same language as that initially introduced, there was no change during the legislative process that could shed light on the meaning of the allowance of interest. See generally 3 Collier on Bankruptcy ¦ 506.03, pp. 506-7 to 506-12. Neither the Committee Reports nor the statements by the managers of the legislation discuss the question of post-petition interest at all. See Report, at 356; S.Rep. No. 95-989, p. 68 (1978); 124 Cong.Rec. 32398 (1978) (statement of Rep. Edwards); id. at 33997 (statement of Sen. DeConcini).
"is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss. . . ."
The rule preventing discharge of criminal fines was articulated promptly after the Bankruptcy Act of 1898 was passed, see In re Moore, 111 F. 145, 148-149 (WD Ky.1901), and was uniformly accepted at the time Congress was considering the Code. See Kelly v. Robinson, 479 U.S. at 479 U. S. 45-46.
Some pre-Code courts also distinguished between the two types of liens because nonconsensual liens were often fixed to the entirety of a debtor's property, while consensual liens usually were fixed to a particular item of property. Whatever the merit of the distinction, modern commercial lending practices have changed, and it is not unusual for commercial lenders to obtain a lien on almost all of the debtor's property. Congress, in enacting the Code, was aware of this, see Report, at 127, and in fact took specific steps to deal with such blanket liens on household goods, see 11 U.S.C. § 522(f)(2). On the other hand, not all nonconsensual liens attach broadly to a debtor's property. A typical mechanic's or construction lien is limited to the property on which the improvement is made. See T. Crandall, R. Hagedorn, & F. Smith, Debtor-Creditor Law Manual ¦ 9.02 (1985).
The Court's decision is based on two distinct lines of argument. First, the Court concludes that the language of § 506(b) of the Bankruptcy Code, 11 U.S.C. § 506(b), is clear and unambiguous. Second, the Court takes a very narrow view of Midlantic National Bank v. New Jersey Dept. of Environmental Protection, 474 U. S. 494 (1986), and its progeny. I disagree with both aspects of the Court's opinion, and with the conclusion to which they lead.
for under the agreement under which such claim arose."
The Court concludes that the only natural reading of § 506(b) is that recovery of post-petition interest is "unqualified." Ante at 241. As Justice Frankfurter remarked some time ago, however, "[t]he notion that, because the words of a statute are plain, its meaning is also plain, is merely pernicious oversimplification." United States v. Monia, 317 U. S. 424, 317 U. S. 431 (1943) (dissenting opinion).
"there shall be allowed to the holder of [an oversecured] claim, interest on such claim and any reasonable fees, costs, or charges provided for under the agreement under which such claim arose."
The phrase "interest on such claim" would be qualified by the phrase "provided for under the agreement under which such claim arose," and nonconsensual liens would not accrue post-petition interest. See Porto Rico Railway, Light & Power Co. v. Mor, 253 U. S. 345, 253 U. S. 348 (1920) ("When several words are followed by a clause which is applicable as much to the first and other words as to the last, the natural construction of the language demands that the clause be read as applicable to all"). This conclusion is not altered by the fact that the words "and any" follow the phrase "interest on such claim." Those words simply indicate that interest accrues only on the amount of the claim, and not on "fees, costs, or charges" that happen to be incurred by the creditor.
punctuation and conjunction so that qualifying phrase would modify antecedent followed by comma and the word "or"); Stephens v. Cherokee Nation, 174 U. S. 445, 174 U. S. 479-480 (1899) (ignoring punctuation so that qualifying phrase would restrict antecedent set off by commas and followed by the word "and").
Although punctuation is not controlling, it can provide useful confirmation of conclusions drawn from the words of a statute. United States v. Naftalin, 441 U. S. 768, 441 U. S. 774, n. 5 (1979). The Court attempts to buttress its interpretation of § 506(b) by suggesting that any other reading would be inconsistent with the remaining portions of § 506, which "make no distinction between consensual and nonconsensual liens." Ante at 489 U. S. 242, n. 5. But § 506(b), regardless of how it is read, does distinguish between types of liens. The phrase "provided for under the agreement under which such claim arose" certainly refers to consensual liens, and must qualify some preceding language. Even under the Court's interpretation, "reasonable fees, costs, or charges" can only be awarded if provided for in a consensual lien. Thus, limiting post-petition interest to consensual liens simply reinforces a distinction that already exists in § 506(b). For the same reason, I find unavailing the Court's assertion, ante at 489 U. S. 242, n. 5, that Congress would have used the phrase "security interest" if it wanted to limit post-petition interest to consensual liens.
"[a]fter notice and a hearing, the trustee may abandon any property of the estate that is burdensome to the estate or that is of inconsequential value to the estate."
"normal rule of statutory construction is that, if Congress intends for legislation to change the interpretation of a judicially created concept, it makes that intent specific,"
"unwilling to assume that by enactment of § 554(a), Congress implicitly overturned longstanding restrictions on the common law abandonment power."
Id. at 474 U. S. 506.
"a situation where bankruptcy law, under the proposed interpretation, was in clear conflict with state or federal laws of great importance."
likely to arouse public outrage'") (quoting TVA v. Hill, 437 U. S. 153, 437 U. S. 209 (1978) (Powell, J., dissenting)).
The first step under Midlantic is to ascertain whether there was an established pre-Code bankruptcy practice. See 474 U.S. at 500-501. That question is easily answered here. Prior to the 1978 enactment of the Code, this Court, as well as every Court of Appeals to address the question, had refused to allow post-petition interest on nonconsensual liens such as the tax lien involved in this case. See City of New York v. Saper, 336 U. S. 328, 336 U. S. 329-341 (1949); In re Kerber Packing Co., 276 F.2d 245, 246-248 (CA7 1960); United States v. Mighell, 273 F.2d 682, 684 (CA10 1959); United States v. Bass, 271 F.2d 129, 130-132 (CA9 1959); United States v. Harrington, 269 F.2d 719, 723 (CA4 1959). See also In re Boston and Maine Corp., 719 F.2d 493, 495-498 (CA1 1983) (post-Code case not allowing post-petition interest on municipal tax lien), cert. denied sub nom. City of Cambridge v. Meserve, 466 U.S. 938 (1984). In order to deflect this line of cases, the Court refers to the practice "of denying post-petition interest to the holders of nonconsensual liens, while allowing it to holders of consensual liens," as "an exception to an exception." Ante at 489 U. S. 246. Regardless of how it is labeled, cf. Henneford v. Silas Mason Co., 300 U. S. 577, 300 U. S. 586 (1937) ("Catch words and labels . . . are subject to the dangers that lurk in metaphors and symbols, and must be watched with circumspection, lest they put us off our guard"), the practice was more widespread and more well established than the practice in Midlantic, and was certainly one that Congress "[would have been] aware of when enacting the Code." Ante at 489 U. S. 246.
"that, when the creditor extended credit, he relied upon the particular security given as collateral to secure both the principal of the debt and interest until payment and, if the collateral is sufficient to pay him, the contract between the parties ought not be abrogated by bankruptcy,"
United States v. Harrington, 269 F.2d at 724 -- has no application to nonconsensual liens. The allowance of interest on nonconsensual liens is akin to a penalty on the debtor for the nonpayment of taxes or other monetary obligations imposed by law. Permitting post-petition interest on nonconsensual liens drains the pool of assets to the detriment of lower priority creditors who are not responsible for the debtor's inability to pay, and who cannot avoid the imposition of post-petition interest. See In re Boston and Maine Corp., 719 F.2d at 497. Indeed, the Court acknowledges that "the payment of post-petition interest is arguably somewhat in tension with the desirability of paying all creditors as uniformly as practicable." Ante at 489 U. S. 245-246.
"it is most improbable that [a change in the existing bankruptcy rules] would have been made without even any mention in the legislative history."
United Savings Association of Texas v. Timbers of Inwood Forest Associates, 484 U. S. 365, 484 U. S. 380 (1988). The legislative history of § 506(b) is "wholly inconclusive," Best Repair Co. v. United States, 789 F.2d 1080, 1082 (CA4 1986), and there is no statement in that history acknowledging that § 506(b) was to work a major change in pre-Code law. Because there is no evidence whatsoever that § 506(b) was meant to allow post-petition interest on nonconsensual liens, it should not be assumed that Congress "silently abrogated" the pre-Code law. Kelly v. Robinson, 479 U.S. at 479 U. S. 47.
For the reasons set forth above, I respectfully dissent.

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