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

Question

Quizplus · Accepted Answer

Secured creditors, like banks, are generally not held liable for environmental cleanup costs if they did not participate in the contamination and are merely foreclosing on a property as part of their security interest.

The Colorful Paint Company Got a Mortgage from the Bank