Environmental

Under CERCLA's liability provisions, which party is generally NOT potentially liable for contamination cleanup?

ACurrent owner (even if innocent)
BPast owner who caused the contamination
CTransporter of waste to the site
DA secured lender who did not participate in the management of the facility✓ Correct

Explanation

CERCLA provides a secured lender exemption for lenders who hold a security interest (mortgage) in contaminated property without participating in management. To maintain this exemption, the lender cannot be involved in day-to-day management decisions. The exemption protects lenders from CERCLA liability when they are simply holding a security interest, which encourages lending on potentially contaminated Minnesota properties.

Related Minnesota Environmental Questions

Practice More Minnesota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Minnesota Quiz →