32-40.1 Lender Liability for Environmental Damage
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<![CDATA[CHAPTER 32-40.1LENDER LIABILITY FOR ENVIRONMENTAL DAMAGE32-40.1-01. Definitions. As used in this chapter:1."Lender-owner" means any person who by virtue of foreclosure, whether by action,<br>advertisement, or voluntary, nonjudicial foreclosure, or upon receipts of an<br>assignment, bill of sale, or deed in lieu of foreclosure, becomes the owner of<br>property.2."Representative" means any person acting in the capacity of a receiver, conservator,<br>guardian ad litem, personal representative of a deceased person, or trustee or<br>fiduciary of property, except a trustee or a fiduciary is limited to an entity acting as<br>trustee or fiduciary and which is chartered by the state banking commissioner, the<br>office of the United States comptroller of the currency, or the office of thrift<br>supervision.3."Third party" means a person other than a governmental entity, seeking to enforce a<br>federal, state, or local environmental statute, ordinance, rule, permit, or order.4."Third-party liability" means liability to a third party for any claim arising out of or<br>resulting from contamination or pollution, including a claim for personal injury,<br>consequential damages, lost profits, exemplary damages, or property damages.32-40.1-02. Third-party liability - Environmental damage.1.Except as preempted by federal law, a person may not be deemed to be an owner<br>or operator of property who, without participating in the management of the property,<br>holds indicia of ownership primarily to protect a security or lien hold interest in the<br>property or in property in which the property is located.2.A lender-owner or representative is not by virtue of becoming the owner of property<br>liable for any third-party liability arising from contamination or pollution emanating<br>from the property before the date the title vests in the lender-owner or<br>representative. For the purposes of this section, the issuance of a sheriff's certificate<br>of sale is not sufficient to vest title in the lender-owner or representative.3.A lender-owner or representative is not by virtue of becoming the owner of property<br>liable for any third-party liability arising from contamination or pollution emanating<br>from the property during the period of ownership so long as, and to the extent that:a.Thelender-ownerorrepresentativedoesnotknowinglycausenewcontamination or pollution or does not knowingly allow others to cause new<br>contamination or pollution;b.The lender-owner has, in good faith, caused an individual, including an officer<br>or employee of the lender-owner, possessing the requisite knowledge and<br>experience to conduct a visual inspection of the property to determine the<br>presence and condition of hazardous wastes or substances and obvious<br>contamination or pollution; andc.The lender-owner found by the enforcing agency to be in noncompliance with<br>federal or state laws takes steps to assure compliance with applicable laws.32-40.1-03.Extent of application.This chapter applies to a lender-owner orrepresentative as long as the lender-owner or representative makes reasonable efforts to resell<br>the property and does not affect any liability expressly created under federal or state health orPage No. 1environmental statutes, rules, permits, or orders. This chapter does not apply to a lender-owner<br>who transports or disposes of waste for profit.32-40.1-04. Applicability to civil actions. This chapter applies to civil actions filed onor after August 1, 1993.Page No. 2Document Outlinechapter 32-40.1 lender liability for environmental damage]]>