foreclosure

Cal Appeals Ct Affirms $2MM judgment against foreclosing bank for failure to complete remediation is

The foreclosing lender in Hoang v. California Pacific Bank, 2014 Cal. App. Unpub. LEXIS 5230 (July 23, 2014) made some curious decisions and the result was the bank was ordered to pay damages to the purchaser that exceed the sales price of the property. The irony is that the lender probably complied with the CERCLA […]

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CMBS Special Servicer May Not Recover VI Test Costs Under Environmental Indemnity

Earlier this year, we discussed   the federal district ruling in Orix Capital Markets, LLC v Cadlerocks Centennial Drive, LLC, 2013 U.S. Dist. LEXIS 48424 (D. Mass. 4/2/13) where a special servicer was allowed to pursue a guarantor despite the presence of an environmental insurance policy and was awarded over $100K in environmental investigation costs. This

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CMBS Special Servicer May Pursue Guarantor Despite Environmental Policy

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

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

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

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

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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Foreclosing Lender RCRA Action May Proceed

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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Bank Not Liable For Auction Sale of Contaminated Property

In Lusk v First Century Bank, 2012 W. Va. LEXIS 241 (Sup. Ct. 4/27/12), the plaintiff/petitioners purchased a commercial property at an auction foreclosure sale. The Notice of Trustee’s Sale and Regency’s advertising notice stated that the sale was subject to “environmental regulations” and that the property was being sold in an “as is” condition.

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