In the recently passed appropriations bill, Congress clarified when lenders and fiduciaries are liable under CERCLA for cleanup of property held as collateral

Article Abstract:

Congress has revised the law governing environment cleanup liability for lenders and fiduciaries as part of the Omnibus Consolidated Appropriations Act of 1997. United States v. Fleet Factors Corp. was overruled through Congress' expansion of the secured-lender exemption. Lenders will not lose the exemption by monitoring borrower finances or inspecting facilities. The Act also established a similar safe harbor for fiduciaries. Taking actions to promote monitoring and cleanup of contaminated property will not trigger personal responsibility for fiduciaries.

Environmental aspects, Liability for environmental damages, Bioremediation, Fiduciary duties

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Companies that fail to make adequate disclosure of potential environmental liabilities under Superfund have become the objects of increased SEC scrutiny

Article Abstract:

The size of potential environmental liabilities has led the Securities and Exchange Commission to examine whether companies are adequately disclosing their environmental problems. The Environmental Protection Agency, with which the SEC has an information-sharing program, estimates the average cost of cleaning up Superfund sites at over $30 million. Environmental disclosure typically arises either under the anti-fraud provision of Rule 10b-5 under the 1934 Securities Act, or Regulation S-K items 101, 103, and 303.

Corporations, Environmental policy, Industrial wastes, Hazardous waste sites

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CERCLA exception for lenders remains unclear; until Congress speaks, lenders should avoid control of their borrowers' pollution problems

Article Abstract:

The Environmental Protection Agency's joint issue with the Justice Department of a memorandum on the Superfund law's exemption for secured creditors does not dispel the confusion and uncertainty that reign. In 1992 the EPA issued a rule that the courts invalidated in 1994, but now the EPA and Justice signal they intend to use that rule as a non-binding guideline. Courts have not consistently followed the rule, and Congress may soon issue a similar law clarifying when lenders are or are not exempt under CERCLA.

Toxic torts

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