South Dakota Codified Laws 34A-15-6.1. State brownfields revitalization and economic development program–Liability forcosts of a response action or remediation–Limitation
Notwithstanding the provisions of § 34A-15-6, a lender–owner is not liable for environmental, response, cleanup, or remediation costs at a brownfields site approved by the Department of Agriculture and Natural Resources for participation in the state brownfields revitalization and economic development program unless:
(1) The lender–owner, its employees, or agents directly cause an immediate release or directly exacerbate a release of the regulated substances on or from the property or directly violate any environmental statute or regulation; or
Terms Used In South Dakota Codified Laws 34A-15-6.1
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Property: includes property, real and personal. See South Dakota Codified Laws 2-14-2
- Statute: A law passed by a legislature.
(2) The lender–owner, its employees, or agents knowingly and willfully compelled the borrower to:
(a) Perform an action that caused an immediate release of regulated substances in excess of reportable quantities; or
(b) Violate any environmental statute or regulation.
Liability pursuant to this section is limited to the cost for a response action or remediation that is directly attributable to the lender–owner’s activities set forth in subdivisions (1) and (2) of this section. Liability arises only if the lender–owner’s actions were the proximate cause of the release or violation. Ownership or control of the property pursuant to a security interest during or after foreclosure does not by itself result in liability. No lender–owner is liable for any response action or remediation if the response action or remediation arises solely from a release of regulated substances in excess of reportable quantities that occurred before or commences before and continues after foreclosure. However, the lender–owner is responsible for the portion of the response action or remediation that is directly attributable to the lender–owner’s aggravation of a release. A release of regulated substances in excess of reportable quantities discovered in the course of conducting environmental due diligence is presumed to be a prior or continuing release on the property.
Source: SL 2004, ch 228, § 1; SL 2021, ch 1 (Ex. Ord. 21-3), § 53, eff. Apr. 19, 2021.