Lender Liability

CMBS Special Servicer May Pursue Guarantor Despite Environmental Policy

CERCLA, Corporate and Real Estate Transactions, Environmental Due Diligence, environmental insurance, Lender Liability, vapor intrusion / By

ORIX Capital Markets, LLC v. Cadlerocks Centennial Drive LLC, 2013 U.S. Dist. LEXIS 6081 (D. Mass. 1/15/13) involved a relatively small commercial loan but offers lots of lessons for borrowers, their counsel and environmental consultants. In this case, Salomon Brothers Realty Corp. (Solomon) extended a ten-year loan in the amount of $1.925MM to Cadlerocks Centennial […]

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New SBA SOP 50 57 May Establish Best Environmental Practices for Foreclosures

Environmental Due Diligence, Lender Liability / By

SBA has issued a new Standard Operating Procedures (SOP) 50 57 “7(a) Loan Servicing and Liquidation “  that consolidates SBA procedures for administration of 7(a) Loans that are in “regular servicing” and “liquidation” status. The new SOP becomes effective on March 1st. Back in June 2012, SBA had revised its SOP In June 2012, SBA

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Bank Agrees To Reimburse EPA for Post-Foreclosure Removal Action Costs

Brownfields, CERCLA, Hazardous Waste, Lender Liability / By

We have frequently written on the heightened risks that lenders face when foreclosing or taking control of the property of defaulted borrowers. See Ohio Bank to Reimburse EPA. Despite several high-profile enforcement cases such as the HSBC case in New York that illustrate the potential exposure that lenders face when they take control over a borrower’s

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PA Bank Agrees to Reimburse EPA For Removal Costs at Owned Property

CERCLA, Lender Liability / By

We have previously discussed how banks can find themselves saddled with environmental liability from bank-owned properties they have acquired when they purchase assets of other banks. See Acquisitions Bring CERCLA Liability to Banks The latest example is In the Matter of Hamburg Mills Creek Superfund Site, Docket No. CERC-03-2013-004 where Wells Fargo agreed to reimburse

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Ohio Bank to Partially Reimburse EPA For Removal Costs Related To Defunct Borrower Facility

CERCLA, Hazardous Waste, Lender Liability / By

An Ohio bank agreed to pay the United States EPA $8K in past response costs incurred by EPA to remove hazardous waste drums at a facility that had been owned by a defunct borrower. The amount the bank agreed to pay represented approximately 10% of the EPA’s response costs. The notice of the proposed Agreement

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Trustee Bank Agrees to Removal Action Settlement with EPA

CERCLA, Hazardous Waste, Lender Liability / By

JP Morgan Chase Bank entered into a Settlement Agreement For Recovery of Past Response Costs (Settlement Agreement)  for a matter captioned In In The Matter Of Browning Lumber Company Superfund Site, Docket No. CERC-03-2007-0028D where the bank agreed to reimburse EPA for $1.28 million in removal costs incurred at a former wood processing facility rural Bald Knob,

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Bank Enters Into Settlement With EPA For Contaminated NY Site

CERCLA, Lender Liability / By

EPA entered into a settlement agreement with the Bank of India (Bank) as part of an innovative settlement to facilitate the sale and reuse of an abandoned facility in Cortland, NY. The settlement was published in the today’s Federal Register .The proposed settlement is subject to a 30-day comment period. The settlement involves the Buckbee-Mears

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Banks Growing Concerned Over Liability Concerns in Brazil

Lender Liability / By

Brazil has a robust economy but some foreign lenders are growing concerned about participating in this expanding market because of potential liability for environmental issues associated with projects they finance. This anxiety follows a 2009 decision by the Superior Court of Justice,Brazil’s highest federal court of appeals, that suggested a lender could be liable for

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Foreclosing Lender RCRA Action May Proceed

CERCLA, Environmental Due Diligence, Hazardous Waste, Lender Liability, vapor intrusion / By

A federal district court  declined to dismiss a RCRA 7002 action brought by a foreclosing lender against the owner of an adjacent dry cleaner in Forest Park National Bank & Trust  v Ditchfield,  2012 U.S. Dist. LEXIS 103007(N.D. Ill. 7/24/12).  The court also granted summary judgment on the bank’s CERCLA cost recovery claim. One reason

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Contamination at Heart of Litigation Over Failed Subdivisions

common law, Disclosure of Environmental Liabilities, Environmental Due Diligence, Hazardous Waste, Lender Liability / By

The Great Recession caused hundreds of residential development projects to ground to a halt. Not surprising, these failed projects have spawned lots of litigation. An interesting Maryland lawsuit involves allegations of fraud and misrepresentation of environmental issues at a development site, and has ensnarled a foreclosing lender. In U.S. Home v Settler’s Crossing, 2010 U.S.

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