Teacher: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. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Teacher: Now, understand the problem? Solve this instance: the trustee's stead." Id. (internal citations omitted). Thus, the Court made clear that it was rejecting only an "independent right to use 506(c)." Id. Accordingly, although Hartford Underwriters provides guidance for our analysis, it does not control the question of whether the Bankruptcy Code allows courts to grant derivative standing to creditors to bring avoidance actions when the trustee refuses to do so. We first note that since Hartford Underwriters every court of appeals to address derivative standing to pursue avoidance claims has affirmed the practice's validity. Two courts have expressly considered the impact of Hartford Underwriters and have upheld the practice. See PW Enters., Inc. v. N.D. Racing Comm'n (In re Racing Servs., Inc.), 540 F.3d 892, 898 & n. 7 (8th Cir.2008) (<HOLDING>); Official Comm, of Unsecured Creditors of
Holding statements: (A) holding that bankruptcy courts can authorize creditors committees in chapter 11 proceedings to sue derivatively to avoid fraudulent transfers for the benefit of the estate notwithstanding hartford underwriters (B) holding in a case where a chapter 11 trustee was appointed after a period during which the debt or had operated as debtor in possession that a chapter 11 trustee has two years from the date of his appointment not from the commencement of the chapter 11 case to bring avoidance actions (C) holding denial of motion to convert from chapter 11 to chapter 7 is interlocutory (D) holding that chapter 13 debtors have standing to bring avoidance actions by reasoning that chapter 13 trustee has standing but little incentive to bring avoidance actions that will result in benefit to debtors of recovering exempt assets (E) holding that derivative standing is available to a creditor to pursue avoidance actions when it shows that a chapter 7 trustee or debtorinpossession in the case of chapter 11 is unable or unwilling to do so notwithstanding hartford underwriters
Student:
(E)