A lender that took a security interest in land from the borrower and later takes possession may be required to clean up the land if it is contaminated.

Question

Quizplus · Accepted Answer

When a lender takes possession of land as a security interest and the land is found to be contaminated, environmental laws, such as the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in the United States, may impose cleanup responsibilities on the current owner or possessor of the property, which can include the lender.

A Lender That Took a Security Interest in Land from the Borrower