Environmental Exposures and Lender Concerns
Environmental Assessments (cont.)
Environmental Assessment Work often Driven by Financial Institution Requirements
(whether client likes it or not):
If client/buyer is required to pay for an assessment is it important to tailor work to
relevant issues instead of using bank's cookie cutter assessment formula?
Is there a logical system in place that tailors the scope of the assessment to relevant
collateral issues?
a.
b.
Example - Should storage tank trust fund eligibility for tanks be an add-on to
Phase I for transaction in which convenience store will be collateral?
Example - Should some type mold/water intrusion survey be included for
collateral consisting of nursing homes that have many occupants with
respiratory issues?
ASTM Recognized Environmental Conditions ("REC")
a.
Note variability/discretion
- Example Underground storage tanks closed a month ago with closure
accepted by agency.
-USTS removed in early 80s with limited documentation
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-Example - Does a drain in an office building that formerly housed a
chiropractic office constitute a REC? Film development in area of drain, etc.View entire presentation