The Colorful Paint Company got a mortgage from the bank to purchase a factory in which it could make paint.As part of its manufacturing process,Colorful Paint dumped the excess paint into a pit behind the building.This practice contaminated the property.If the bank foreclosed on the factory,would the bank be liable for cleanup costs of the contaminated land?

Question

Quizplus · Accepted Answer

A) Secured creditors that use contaminated property for collateral are exempt from
liability under Superfund laws as long as they were not participating in the management of the polluting firm before foreclosure.
q) Secured creditors that use contaminated property for collateral are exempt from liability under Superfund laws as long as they were not participating in the management of the polluting firm before foreclosure.
r) Secured creditors that use contaminated property for collateral are exempt from liability under Superfund laws as long as they were not participating in the management of the polluting firm before foreclosure.
s) Secured creditors that use contaminated property for collateral are exempt from liability under Superfund laws as long as they were not participating in the management of the polluting firm before foreclosure.

The Colorful Paint Company Got a Mortgage from the Bank