CBN Lender Survey Results & Discussion Sponsored by: 1 CBN - - PowerPoint PPT Presentation

CBN Lender Survey Results & Discussion

Sponsored by:

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CBN Lender Survey Results & Discussion 2016 CBN Annual Conference

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CBN Lender Survey Overview

• Purpose of the survey was to get an updated perspective on

lender’s attitudes towards brownfields

• Survey developed with input from members of CBN’s Finance and

Insurance Committee and other CBN Board Members

• Survey Sent via “Survey Monkey” to 8 Canadian lenders
• 6 completed survey (one lender said they did not lend against

brownfields)

• Challenge in finding the right person to ask…..

Survey Questions

• Lending operations Canada-wide?
• Environmental Policy related to credit/financing operations?
• Require Environmental Site Assessments (ESAs) for sites taken as

security?

• Willing to lend against sites with contamination above generic

standards?

• Willing to lend against sites with contamination above generic

standards where a site specific risk assessment (or similar), including regulatory review/approval, has been completed?

• Do you have a preferred list of environmental consultants?
• Do you have minimum requirements for Professional and/or

Contractors Pollution Liability insurance for these consultants?

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Survey Questions (cont.)

• Do you require a reliance letter from consultants?
• Do you have any “age” restrictions on ESAs?
• Do you use holdbacks to ensure the remediation of a contaminated

site is completed?

• Will you accept a “Screening Level Risk Assessment” (SLRA) in lieu
• f actual remediation?
• Do you finance properties where the contamination from the subject

property had migrated offsite?

• Do you finance properties with liens or potential/ongoing legal

action?

• Have you, or would you, use environmental insurance as a backstop

to, or in lieu of, an indemnity for a loan against a site or group of sites?

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Most significant findings/results

• Most responding lenders will lend against sites contaminated above

generic standards

• None of the responding lenders said they would consider sites with

liens or potential/ongoing legal action

• Most of the responding lenders said they would not finance

properties where contamination had migrated from the subject property

• Some responding lenders will accept an SLRA or equivalent
• All responding lenders use holdbacks to ensure remediation of a

contaminated site is completed

• Most responding lenders have and/or would use environmental

insurance

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Panel Questions and Discussion

• What is most important issue for you when considering

lending against a brownfield site?

• How important is regulatory certainty/liability relief to you

when considering lending against a brownfield site?

• Is there a type(s) of former land use(s) on a brownfield

site where you would not consider lending?

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Thank you for attending! Contact info@canadianbrownfieldsnetwork.ca