Potential lender liability for contamination of foreclosed properties has been known for decades, and has been addressed by specific provisions in the federal Superfund law, among others.  Less well known, but potentially as significant, is the liability a lender can incur by foreclosing on property that is under development, under the federal Clean Water Act and its state counterparts (the CWA). The CWA requires most construction projects to be permitted under either an individual NPDES permit, or a general permit for construction activities, either of which legalizes the discharge of stormwater runoff from sites under construction, as long as the… Read more