Question

If a bank assumes ownership of a piece of contaminated land

a. The previous owner will be solely responsible for the cleanup
b. The bank can re-sell the property without any liability for cleanup
c. The bank becomes a responsible party
d. The bank is withheld from selling the land due to its contaminated status
e. The future owner will be solely responsible for the cleanup upon its sale to the future owner

Answer 1

If a bank assumes ownership of a piece of contaminated land, the bank becomes a responsible party .

Option c

Explanation:

According to the banking norms for getting loan a property has to be attached as a collateral security and agreement of repaying entered between the bank and loanee.

In case of defaulting of loan it is the prerogative of the bank to sell or withheld the property.

So, to recover the loan, bank has the right to sell the attached property which is attached as collateral security even if it is contaminated land. The sole aim of the bank is to recover the loan in case of repayment in which loanee is referred as defaulter.