The Office of the Comptroller of the Currency (OCC) has published a new “Commercial Real Estate Lending” (CREL) booklet of the Comptroller’s Handbook. The revised booklet includes updated statutory and regulatory developments in environmental risk management.
The booklet provides much more guidance related to environmental risk. The CREL booklet states “Environmental contamination may negatively affect the value of real property collateral as well as create potential liability for the bank under various environmental laws. Therefore, the bank’s loan policy should establish a program for assessing the potential adverse effect of environmental contamination and ensure appropriate controls to limit the bank’s exposure to environmental liability associated with real estate taken as collateral.”
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