Question

First National has just foreclosed on the mortgage of one of its debtors, Rayon Chemical. It will be six months before Rayon can sell the property. What can First National do with the property without risking CERCLA liability? a. Inspect the property. b. It is too late; foreclosure results in CERCLA liability. c. Operate the plant. d. none of the above

Answer 1

Answer:A. INSPECT THE PROPERTY.

Explanation: FORECLOSURE is a legal process through which a lender can use to recover the debt owed by a debtor who has since stopped making payments or servicing the loan.

In the case of First national and Rayon chemicals, First National is the lender and Rayon is the debtor for First National to avoid any Liabilities is to INSPECT THE PROPERTY to ensure the property is as agreed or stated.