Environmental Due Diligence & Risk Management

The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) provides a secured creditor exemption from liability for banks and other lenders that do not participate in the management of the property. The United States Environmental Protection Agency has issued a rule interpreting the secured creditor exemption under CERCLA, 57 Fed. Reg. 18344 (April 29, 1992). In addition to the federal Superfund law, most states have enacted legislation that establishes similar liability under state law for hazardous contamination cleanup costs.

Read all of the FDIC Guidelines at: www.fdic.gov/regulations/laws/rules/5000-4900.html