Foreclosure on property pledged behind a bank loan does not subject a bank to be held liable to clean up any environmental damage the borrower may have caused.

Question

Quizplus · Accepted Answer

When a bank forecloses on a property, it becomes the owner and may be held liable for any environmental cleanup under laws such as the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in the United States, depending on the extent of its involvement in the management of the property and the nature of the contamination.

Foreclosure on Property Pledged Behind a Bank Loan Does Not