ROSELAND, NJ—Most commercial real estate lenders requireindemnification for environmental liability. This requirement isgenerally reasonable in light of the fact that lenders should notincur liability arising from hazardous substances merely becausethey have security interests in contaminated properties. However, a careful analysis of requested environmental indemnitiesshould be performed to seek to significantly limit the liability ofindemnitors. Below are some paramount provisions that environmentalindemnitors should carefully consider as they maneuver through theenvironmental landscape and negotiate the scope and terms of theirindemnities:
Consider when indemnities should terminate—afterpayoff
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