Current as of: 2010 (a) The Legislature hereby finds and declares all of the
following:
(1) There is uncertainty in the law of this state with regard to
the liability of lenders for hazardous material contamination
involving property that is owned or used by borrowers, whether or not
the property is collateral for the loan or obligation.
(2) There is also uncertainty in the law of this state with regard
to the liability of trustees, executors, and other fiduciaries for
hazardous material contamination involving property that is part of
the fiduciary estate. Fiduciaries understand that the fiduciary
estate may have that liability, but are concerned that a fiduciary
may have independent personal liability, despite the absence of
personal culpability for the contamination.
(3) The uncertainty as to liability or potential liability is
attributable to the failure of existing law, except for the security
interest exemption incorporated by reference in Section 25323.5, to
recognize that usually the credit or fiduciary relationship is not
sufficiently related to the hazardous material contamination to
warrant, as a policy matter, the imposition of liability on lenders
and fiduciaries.
(b) It is the intent of the Legislature, in enacting this chapter,
to specify the type of lender and fiduciary conduct that will not
incur liability for hazardous material contamination. However, the
liability exemption has appropriate boundaries. For example, the
exemption will not protect lenders or fiduciaries in transactions
that are structured for the purpose of evading liability for
hazardous material contamination if the lender or fiduciary is not
acting within its respective capacity, or if the contamination is
caused by the lender or fiduciary.
(c) This chapter does not apply to judicial actions filed, or
administrative orders issued, before January l, 1997, or to
proceedings to enforce judicial or administrative orders issued
before January 1, 1997.
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