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.
Q: 523(a)(4) defalcation prong, as stated by this court in In re Kaplan, 162 B.R. 684, 704 (Bankr.E.D.Pa.1993), aff'd sub nom. Kaplan v. First Options of Chicago, Inc., 189 B.R. 882 (E.D.Pa.), reconsideration denied sub nom. First Options of Chicago, Inc. v. Kaplan, 198 B.R. 91 (E.D.Pa.1996), that the term "fiduciary capacity" is very narrowly defined. Thus, we stated, at id., that, to give rise to 523(a)(4) liability, it is not sufficient for the plaintiff to prove only that there was a fiduciary relationship between the parties, but also to prove that there is an express trust held by the fiduciary (debtor) on behalf of the beneficiary (creditor), which did not arise out of the action that created the fiduciary relation ship. See In re Spector, 133 B.R. 733, 739-40 (Bankr.E.D.Pa.1991) (<HOLDING>); In re Shervin, 112 B.R. 724, 730-31
Holding statements: (A) holding that federal law defines fiduciary capacity and fraud or defalcation (B) holding that a statutorilyimposed fiduciary obligation created an express trust fiduciary relationship for purposes of 523a4 (C) holding that the fraud or defalcation prong of 523a4 requires the showing of an express trust (D) holding that an attorney is a fiduciary under section 523a4 (E) holding a duty of care without more insufficient to satisfy the fiduciary relationship element of 523a4 the federal courts adopting this narrow interpretation of fiduciary for purposes of the bankruptcy code gen erally hold that an express or technical trust is necessary to trigger the defalcation provision of 523a4
A:
holding that federal law defines fiduciary capacity and fraud or defalcation