Congress Clarifies Lender and Lessor Responsibility for Hazardous Substance Spills

Watson, Farley & Williams reported on October 8 that Congress had enacted an important amendment to the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) which clarifies the scope of the potential liability of lenders under CERCLA’s “security interest” exemption. The amendment effectively results in the statutory enactment of the Lender Liability Regulations – the so-called Lender Liability Final Rule. While this new law does not apply directly to OPA ’90 liability, courts are expected to refer to it when analyzing a secured creditor’s risks under that law.

The amendment addresses the activities in which a lender who holds indicia of ownership primarily to protect the security interest in a vessel or property, may participate without being considered an “owner or operator” under CERCLA.

This is only an excerpt of Congress Clarifies Lender and Lessor Responsibility for Hazardous Substance Spills

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