January 19, 2011, 9 am to 1 pm
This half day training seminar is being provided for individuals who have responsibilities for managing liabilities associated with commercial lending, and those needing to meet environmental due diligence requirements prescribed by the U.S. Small Business Administration (SBA).
Legal and Regulatory Aspects of Lender Environmental Liability
Lenders need to be aware of potential environmental liability associated with the past use of property. Federal and state environmental laws impose financial obligations, including investigation and response costs, on parties who own or operate sites where there has been a leaking underground tank or a release of hazardous substances. Lenders need to be aware of liability arising from impacts to soil and groundwater and the emerging issues associated with vapor intrusion. This session will focus on due diligence review, the All Appropriate Inquiry standard and liability assurances that are available to Lenders and Borrowers to address these liability concerns.
Lender Liability Protection and Due Diligence Tools
A number of tools are available to lenders to help evaluate and manage potential risks. These range from simple Environmental Questionnaires to more extensive environmental reviews. This session will provide an overview of the typical assessment tools, including transaction screening, Phase 1 and 2 environmental site assessments. The session will also cover a specific type of assessment process required by SBA, a “Records Search With Risk Assessment”. Finally, the session will discuss the use of Reliance Letters by Lenders and SBA.
Overview of SBA Environmental Policies and Procedures
Since 2008, SBA has been much more prescriptive in the required level of environmental review to participate in SBA lending programs. This session will provide an overview of environmental review requirements in SBA Standard Operating Procedure SOP 50-10(5), which applies to 504 Loan programs, and SOP 50-51(3), which defines the Post-default Environmental Investigations required by SBA.
During the final session, case studies will be presented to emphasize the key concepts of Lender Environmental Liabilities.
For further information go to:
Understanding Lender Environmental Liabilities and Environmental Review Requirements
Caltha LLP, a leading provider of environmental due diligence services to the banking industry
Minneapolis, MN, Pine River, MN, Eau Claire, WI, Tucson, AZ