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Commercial Real Estate Demands an Environmental Risk Policy

Published in Credit Union Journal

As more credit unions venture into the commercial real estate market, having an environmental risk management policy becomes increasingly important for many reasons, including: 

  • Ensuring the CU is not exposed to environmental liabilities, such as being responsible for the cleanup on a foreclosed contaminated property.  
  • Avoiding potential losses from not being able to foreclose on a property because it is contaminated.  
  • Evaluating whether environmental concerns will reduce the value of the property or affect the borrower’s ability to repay the loan.  
  •  Avoiding negative PR involved with a contaminated site. 
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