Richards Layton & Finger

Commercial Real Estate Loans: Lender's Environmental Liability


This Practice Note provides a background on a lender's potential environmental liabilities for issuing a loan where real property is the collateral. Specifically, this Note discusses the basic liability framework of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and liability protections available to lenders and borrowers. This Note also discusses some of the other state and federal laws that lenders should examine.