ALI-ABA Course of Study Commercial Real Estate Defaults ...

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4.4.1 Review Closing Appraisal and Compare with Current or Recent
Appraisal - Consider basis of the variance, if any Are there any
erroneous assumptions in the closing appraisal
4.4.2 Review Original Market Analysis
4.5 Construction Loan Evaluation - Determine state of completion. Have
construction documents been assigned to lender What is the status of debtor's
accounts with contractors and material supply people Do they have right to file
lien claims Confirm status of permits, approvals, variances, land use
proceedings.
4.6 Reciprocal Easement Agreements - Review REAs if they are of value or a
detriment to the mortgaged property. Consider the possibility of a rejection of any
REAs in a bankruptcy code proceeding. See discussion at item 8.5 below.
4.7 Environmental Concerns
4.7.0 Possibly Relevant Federal Statutes include the following:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
The Clean Water Act, 33 U.S.C. §1251 et seq.;
The Clean Air Act, 42 U.S.C. §7401 et seq.;
The Resource Conservation and Recovery Act, as amended by the
Hazardous and Solid Waste Amendments of 1984, 42 U.S.C.
§6901 et seq.;
The Safe Drinking Water Act, 42 U.S.C. §300f et seq.;
The Toxic Substances Control Act, 15 U.S.C. §2601 et seq.;
The Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C.
§136-136y;
The Emergency Planning and Right-To-Know Act, 42 U.S.C.
§11001 et seq.;
The Environmental Quality Improvement Act, 42 U.S.C. §4371 et
seq.;
The National Flood Insurance Act, 42 U.S.C. §4001 et seq.;
The Fish and Wildlife Coordination Act, 16 U.S.C. §1451; and
The Wild and Scenic Rivers Act, 16 U.S.C. §1271 et seq.
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DSC:767996.2
4/4/2006 3:55 PM Copyright 1996 - 2002 Marvin Garfinkel
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