Detailed Instructions: In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision. Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Problem:relief which transgresses the control over PRSI property which is now properly vested in the Florida state court. Count V refers to "equitable subordination," which is a cause of action recognized in bankruptcy cases under section 510(c). If a claim of a creditor is equitably subordinated, then the claim, although allowed, is reduced in priority and is paid only after other allowed claims' typically, the claims of general, unsecured creditors are repaid in full. See In re Adler, Coleman Clearing Corp., 277 B.R. 520, 563 (Bankr.S.D.N.Y.2002). As the disallowance of a claim submitted by a receiver to a bankruptcy court would not violate federal common law, the reduction in its priority is also within my jurisdiction. Cf. In re Continental Financial Resources, Inc., 149 B.R. at 260 (<HOLDING>). In Count V, however, the trustee actually
Holding statements: (A) holding that the words allowed secured claim in 506d refer to a claim that is secured by a lien and allowed under 502 (B) holding that a bank receiver by filing a claim permits challenge to the secured portion of its claim (C) holding that if 506 does not apply to an allowed claim such claim cannot become a secured claim (D) recognizing claim against bank receiver (E) holding that the secured creditor was only entitled to the amount of its claim as provided in the debtors chapter 13 plan when the destruction of the vehicle yielded insurance proceeds greater than the secured creditors claim
Solution:
holding that the words allowed secured claim in 506d refer to a claim that is secured by a lien and allowed under 502