Lenders' liability for environmental damages in the absence of statutory regulation - lessons from the Israeli model
Lenders' liability for environmental damages in the absence of statutory regulation - lessons from the Israeli mode
Most countries lack regulations that directly address the 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, analyses the US 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.
Part 1. Law and Financial Markets Review, Vol. 5, No. 5, Oct 2011: 367-379.
Part 2. Law and Financial Markets Review, Vol. 5, No. 6, Dec 2011: 458-466.
Part 1 http://dx.doi.org/10.5235/175214411797474213