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    Marc Policastro Authors Q&A On Environmental Liability

    January 5, 2012

    Are lenders really insulated from environmental liability merely because the lender is a "secured party" and not an "owner or operator" under the New Jersey Spill Act?

    January, 2011, New Jersey Tech News - Generally speaking, the New Jersey "Spill Act" (N.J.S.A. 58:10-23.11), et. seq., provides a "safe harbor" provision for lenders or holders of security interests. Spill Act liability will not be imposed on lenders where "releases" or "discharges" of hazardous substances occur on the property serving as collateral where the borrower is still in possession and the lender is not an "active participant in management." That begs the question as to when lenders become "actively participating" in management. The statute and cases interpreting this provision focus on the level of decision making control the lender exercises and to what degree the lender is actually managing the property.

    To see the full article, please click here

    As a member of the New Jersey Technology Council (NJTC), the Giordano Firm contributes a Legal Q&A column to the TechNews magazine. The Q&A covers topics across various legal areas that may be of interest to this audience. Our goal is to provide sound legal advice and effective strategies to resolve business issues.
    Tags: Marc D. Policastro, Environmental

    Posted in: Environmental - Land Use