Colorado Code § 13-20-701

Legislative declaration. Federal and state environmental laws provide that
Open in Lexace · Ask the AI about this section
the owner of real property is liable for cleanup of property contamination and define who is the
owner of such property. If a borrower defaults on a loan, a lender must decide whether to
foreclose and potentially become the owner. For fear of becoming liable for conditions they did
not create, lenders are showing a reluctance to foreclose, thus leaving no one responsible for the
cleanup. So that lenders can predict with more certainty what their costs will be when they
foreclose, it is the intent of the general assembly to limit third-party liability for lenders who
comply with certain conditions to the cost of cleaning up contaminants or pollution pursuant to
federal, state, and local laws. In addition such limitations may also make lenders more willing to
lend to certain types of businesses.

‹ Prev All Colorado sections Next ›


Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.