Asset Conservation, Lender Liability and Deposit Insurance Act of 1996

Asset Conservation, Lender Liability and Deposit Insurance Act of 1996

An amendment to the

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) made in response to mortgage lender anxiety regarding statutory language that might make lenders liable for cleanup of contaminated sites, simply by virtue of their mortgage interest or as the result of a foreclosure.The amendments protect lenders from liability,preforeclosure,unless they participated in the contamination. It also shields them after a foreclosure, but only if they sell the property at the earliest practicable, commercially reasonable, time.

References in periodicals archive ?
However, since the enactment of the federal law known as The Asset Conservation, Lender Liability and Deposit Insurance Act of 1996, there has been somewhat of a rebound in this lending activity.