Heating Oil Underground Storage Tanks (USTs) in the Basement of a Multi-Family Residential Tower
Source: SiriusPoint Environmental
A lending institution wanted to offer a loan to refinance a 45-story multi-family residential tower in New York. The boilers in the basement had historically been fueled by heating oil that was stored on-site in several large USTs buried beneath the basement floor. The USTs were no longer in use and had been abandoned in place decades ago, but there had been no investigation or sampling of the USTs. Concerned about a potential release of petroleum hydrocarbons from the USTs, the lender was hesitant to extend financing on the property. Based upon the profitability of the collateral and the financial strength of the borrower and guarantor, SiriusPoint offered unrestricted site coverage for the lender. In the event the borrower was to default on the loan, the lender would have environmental insurance coverage for cleanup costs or mortgage protection, as well as coverage for third party
bodily injury or property damage claims.
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