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 […]
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
CMBS Special Servicer May Not Recover VI Test Costs Under Environmental Indemnity Read More »
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
CMBS Special Servicer May Pursue Guarantor Despite Environmental Policy Read More »
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
New SBA SOP 50 57 May Establish Best Environmental Practices for Foreclosures Read More »
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
Bank Agrees To Reimburse EPA for Post-Foreclosure Removal Action Costs Read More »
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
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,
Trustee Bank Agrees to Removal Action Settlement with EPA Read More »
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
Foreclosing Lender RCRA Action May Proceed Read More »
Centennial Bank v Dever Development Group, 2012 U.S, Dist. LEXIS 4483 (N.D. Fla. 1/13/12) is a short case with lessons for foreclosing lenders.The opinion is short on facts but it appears the plaintiff bank is a successor to a bank was taken over by the FDIC. The plaintiff sought to foreclose on property that had
Conservation Easement Complicates Foreclosure Read More »
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.
Bank Not Liable For Auction Sale of Contaminated Property Read More »