Are there underground storage tanks (USTs) on the property?
If there are active USTs on the property, the lender may assume ongoing compliance obligations after foreclosure. In certain situations, a lender might also have exposure related to releases from old, abandoned UST’s on the property. Certain states have lender liability safe-harbors for UST liability and the lender should coordinate with counsel to make sure it qualifies, where possible, for those safe-harbors. Although this article is primarily aimed at commercial/industrial foreclosures, it is worth nothing that foreclosures on residential properties, particularly in the northeast, can present unique environmental issues related to leaking home heating oil USTs. 8. Have environmental permits been issued for operations on the property? If so, there may be notice/compliance obligations imposed upon the lender by virtue of the foreclosure. In Georgia, for example, a foreclosing lender must submit a Notice of Intent under Georgia’s National Pollutant Discharge Elimination System stormwat
