Brian S. B. Lee


Lending institutions remain focused, as they must, on the risk of environmental liability under CERCLA arising from their borrowers' activities. They must temper their desire to protect their security interests with consideration of the very real threat of liability for environmental cleanup costs. Recent interpretations by courts and the Environmental Protection Agency, and intervention by the Federal Deposit Insurance Corporation, have further altered the equation. This comment examines CERCLA, its underlying purpose, and the impact recent events will have on secured creditors as they rattle down the tracks of the headiest of rides, the environmental liability roller coaster.