Activity and Use Limitations
In many instances, exposure to soil, groundwater contamination and vapor on a commercial property can be limited by federal and state regulatory bodies through “Activity and Use Limitations” or AULs. Information regarding AULs is typically contained in the...
Requirements for SBA Lending
The U.S. Small Business Administration (SBA) Standard Operating Procedures, SOP 50 10 5(H), requires environmental assessments on all commercial properties offered as security for a loan. The level of environmental due diligence required is dependent on the...
Asbestos in Commercial Buildings: Abate or Manage in Place?
Health hazards associated with airborne asbestos exposure were originally known to impact workers involved in building trades, the maritime industry, mining, and the manufacturing/processing of products which contained asbestos. Three of the major adverse health...
No Further Action or Closure Letters: “Perceived Liability Protection?”
The majority of commercial lenders place significant emphasis on the importance of closure or “No Further Action” letters obtained from regulatory authorities. Their focus is on the impact such documentation may have in reducing future liability associated...
Industrial Codes
SIC CodesStandard Industrial Classification (SIC) codes were established in 1937 to identify a firm’s primary business activity. These codes were initially used by federal governmental branches such as the Department of Labor and Statistics, US Census Bureau,...
Environmental Risk Policy – Where to Begin
The development and maintenance of an environmental policy can present a challenge for lenders and banking risk managers that do not have an internal environmental staff. The process not only includes a determination of the types and levels of due diligence that will...
ERI Supercharges its IT Infrastructure
In response to the increasing environmental risk management needs of ERI’s loyal client base, we strive to keep you apprised of recent expansion/upgrades to our Information Technology (IT) infrastructure. As you may be aware, ERI has maintained redundant internet...
Environmental Questionnaires
An environmental questionnaire is often the first instrument used to evaluate the environmental risk associated with a specific property. Many bank environmental risk policies require the borrower to complete an environmental questionnaire for all new loans and...
Does Your Bank Have an Effective Environmental Risk Management Program?
The purpose of an Environmental Risk Management (ERM) program is to identify environmental issues that could result in losses and/or liability to the Bank. Appropriate environmental due diligence minimizes financial loss attributable to diminished collateral value,...
Managing Asbestos
Although there are very specific guidelines and regulations which govern the management of asbestos in public school systems, these regulations do not apply to commercial and industrial buildings. An OSHA provision in the construction asbestos standard,...