Recent developments in lender liability under CERCLA: Coping with [open quotes]animal house[close quotes] disorder
This article traces the development of lender liability for hazardous waste cleanup costs under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) as amended by the Superfund Amendments and reauthorization Act of 1986 (SARA). The major issues faced by lenders under CERCLA are the extent to which a secured creditor may involve itself in the debtors' operations without becoming a CERCLA Owner or operator and whether a lender who forecloses on collateral and takes title is liable under CERCLA. The size of the hazardous waste problem is enormous and the EPA estimates there are between 30,000 and 50,000 toxic waste sites in the U.S. As of February 1991, EPA had listed 1,198 site on its national priorities list and of these 116 are federal facilities, usually operated by the Department of Defense or the Department of Energy. Because CERCLA's goal was to make those responsible for the contamination pay for its cleanup, the statue mandated liability against the owners and operators of hazardous waste sites. Congress specifically excluded from liability an entity that held a security interest in a hazardous waste facility but did not participate in its management. However, as a result of varying judicial interpretations of CERCLA section 101(20)(A), mortgagees now face considerable exposure. 40 refs.
- OSTI ID:
- 5680353
- Journal Information:
- Tort and Insurance Law Journal; (United States), Journal Name: Tort and Insurance Law Journal; (United States) Vol. 28:1; ISSN TILJED; ISSN 0885-856X
- Country of Publication:
- United States
- Language:
- English
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Terrestrial-- Site Resource & Use Studies-- (1990-)
CIVIL LIABILITY
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCING
HAZARDOUS MATERIALS
INDUSTRIAL PLANTS
INDUSTRIAL WASTES
LAWS
LENDING INSTITUTIONS
LIABILITIES
LOAN GUARANTEES
MANAGEMENT
MATERIALS
NATIONAL ORGANIZATIONS
OWNERSHIP
POLLUTION LAWS
PUBLIC LAW
US DOD
US DOE
US EPA
US ORGANIZATIONS
US SUPERFUND
WASTE DISPOSAL
WASTE MANAGEMENT
WASTES