Lenders' Liability for Environmental Damages in the Absence of Statutory Regulation -- Lessons from the Israeli Model: Part 2
5(6) Law and Financial Markets Review 458
9 Pages Posted: 23 Apr 2014
Date Written: November 2011
Most countries lack regulations directly addressing liability of lenders for environmental problems caused by their borrowers. Nonetheless, lenders may be held liable under various theories of banking, environmental, tort, and corporate law. This article examines the justifications for holding lenders liable and the limits of those justifications, analyzes the American model that explicitly regulates lenders' liability, and explores potential lender liability under various theories of Israeli law. The Israeli analysis illustrates theories that can be used in other countries to impose liability on lenders. The conclusion discusses the advantages and disadvantages of defining lender liability through the variety of legal theories discussed in the paper, as compared with defining such liability in a special regulatory scheme.
This is the second part of the article.
Keywords: lenders liability, environmental liability, Israeli law, loans, financial regulation, SERCLA
JEL Classification: K13, K23, K32, N20
Suggested Citation: Suggested Citation