EPA offers relief for UST lenders.

EPA offers relief for UST lenders Comments were due Aug. 12 on the Environmental Protection Agency's proposed regulations regarding underground storage tanks (USTs).

The regulations would clarify the rules applying to lenders who foreclose on properties containing leaking tanks. EPA

The regulation will affect anyone who holds a security interest in a tank from the time that the person extends the credit up through and including foreclosure and resale.

According to the rule, lenders will be seen as "operators" of underground storage tanks upon foreclosure. But they will meet their regulatory obligations by undertaking "minimally burdensome" actions--such as emptying an underground tank within 15 days after foreclosure and temporarily or permanently closing the tank.

Additionally, according to the EPA's proposal, a lender will not lose protection from liability for requiring a borrower to clean up a release from the tank which may have occurred prior to or during the life of the loan or security interest.

A lender can periodically monitor or inspect the UST or the borrower's business or financial condition in order to police the loan as long as the activities are not considered evidence of management participation as defined by the EPA.

The EPA expects the proposed rule both to result m greater capital availability for UST owners and operators, and to exempt lenders from UST corrective-action regulatory compliance.