Environmental liability is a topic banks are beginning to think about very seriously when they consider what will be adequate security for a loan. In their 2005 article, Lee & Egede conclude that: [P]rospects of liability falling on the bank, while not impossible, are remote, assuming that the bank acts responsibly. On the other hand, indirect impacts of liability rules-such as the impact of laws on a client’s ability to repay a loan-are increasingly pervasive. This is true to the point that prudent lending policy must take account of environmental considerations. -R. Lee & T. Egede Bank Lending and Environmental Liability (2005) The Centre for Business Relationships, Accountability, Sustainability and Society Working Paper Series No. 30, at 2. Available from: https://www.brass.cf.ac.uk/uploads/wpbanklendingRLTE1105.pdf
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