New Superfund risks: uncertainties arise from a recent court decision that puts the onus on lenders for clean-up costs.
Mortgage Banking › Vol. 50 Nbr. 11, August 1990 ›
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Summary
Comprehensive Environmental Compensation Response and Liability Act
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New Superfund risks: uncertainties arise from a recent court decision that puts the onus on lenders for clean-up costs.
NEW SUPERFUND RISKS
Uncertainties arise from a recent court decision that puts the onus on lenders for clean-up costs. In recent years, the law in the area of lender liability under the Comprehensive Environmental Compensation Response and Liability Act (CERCLA), also known as Superfund, has become more clearly defined. However, U.S. v. Fleet Factors Corporation, the first federal appeals court decision addressing lender liability under Superfund, recently injected a great deal of uncertainty into this area of the law. There are two primary ways in which secured lenders typically become liable under Superfund for the clean-up costs of the property in which they hold their security interests: by becoming the property's owner by taking title pursuant to foreclosure, or by becoming the properly's owner and/or operator by...See the full content of this document
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