Lender Liability Under CERCLA: Uncertain Times for Lenders
On February 4, 1994, the U.S. Court of Appeals for the D.C. Circuit vacated the U.S. Environmental Protection Agency's (EPA's) April 1992 lender liability rule, which delineated the scope of the Comprehensive Environmental Response, Compensation, and Liability Act's (CERCLA's) secured creditor exemption. The court held in Kelley v. U.S. Environmental Protection Agency that the regulation could not stand as a substantive or legislative rule because Congress, through CERCLA, gave courts and not EPA the authority to interpret questions of liability.