40
Stevens, J., dissenting
bankruptcy trustee cannot avoid the transfer. The interest in a rigid interpretation of the doctrine of sovereign immunity outweighs the interest in equitable treatment of general creditors and shareholders of the corporate debtor. This result is neither necessary nor just.
It is not necessary because both the text and the legislative history of the Bankruptcy Code support a contrary result. It is not just because nothing more than a misguided interest in adherence to obsolete judge-made rules is at stake. I shall comment first on the laws enacted by Congress and then on the rules that the Court itself has ordained.
I
The text of § 106 is straightforward. Because the case does not involve either a counterclaim or an offset, subsections (a) and (b) are not applicable. Subsection (c) provides:
"(c) Except as provided in subsections (a) and (b) of this section and notwithstanding any assertion of sovereign immunity—
"(1) a provision of this title that contains 'creditor,' 'entity,' or 'governmental unit' applies to governmental units; and
"(2) a determination by the court of an issue arising under such a provision binds governmental units." 11 U. S. C. § 106(c).
The United States is a "governmental unit," 1 and therefore any provision of the Bankruptcy Code that contains one of the "trigger words" listed in paragraph (c)(1) applies to the United States. Section 550(a) is undoubtedly one such pro-1 Section 101(27) defines the term "governmental unit" to include the "United States [and any] department, agency, or instrumentality of the United States." 11 U. S. C. § 101(27) (1988 ed., Supp. II).
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