Rake v. Wade, 508 U.S. 464, 7 (1993)

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470

RAKE v. WADE

Opinion of the Court

requires all holders of allowed secured claims to be paid the present value of such claims, which implies the payment of interest." Reply Brief for Petitioners 5. Accord, Brief for Respondent 16-17; Brief for United States as Amicus Curiae 11-12, and n. 8.

III

Although petitioners and respondent generally agree as to the requirements of §§ 506(b) and 1325(a)(5), petitioners argue that those provisions do not apply when the debtor cures a default on a home mortgage under § 1322(b)(5). Some courts have construed the "cure" and "modification" provisions of § 1322(b) so broadly as to render §§ 506(b) and 1325(a)(5) inapplicable to the curing of defaults on home mortgages. E. g., Landmark Financial Services v. Hall, 918 F. 2d 1150, 1153-1155 (CA4 1990). Petitioners contend that this is precisely what § 1322(b) requires.

A

Turning first to § 506(b), petitioners concede that respondent holds an oversecured claim, which includes arrearages 7 and that " 'an oversecured creditor is ordinarily entitled to an allowance for postpetition interest on its secured claim under Chapter 13.' " Reply Brief for Petitioners 2 (quoting In re Laguna, 944 F. 2d 542, 544 (CA9 1991) (footnote omitted), cert. denied, 503 U. S. 966 (1992)). They argue, however, that § 1322(b)(5) "operate[s] to the exclusion of the provisions of § 506(b)," Brief for Petitioners 9, and that § 506(b) thus "does not require the payment of . . . preconfirmation interest on home mortgage arrearages in Chapter 13 bankruptcy proceedings," Reply Brief for Petitioners 1. Because § 1322(b)(5) does not expressly negate § 506(b), petitioners suggest that " '[d]espite some broad language in Ron Pair,

7 Respondent is the holder of an allowed oversecured claim in each pair of petitioners' cases, and this claim includes "arrearages on the note and mortgage." App. 6, 22.

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