According to a recent survey by the Federal Reserve, the strengthening economy has increased business and consumer loan demand and led to improvements in many real estate markets. As a result, some banks have eased the terms and standards for all types of commercial real estate loans where markets are coming back.

While this is good news for business, a recent court decision illustrates the need for banks to exercise caution when granting new loans on property that is or has the potential to become contaminated.

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