The ALDA Act, also known as the Asset Conservation, Lender Liability, and Deposit Insurance Protection Act of 1996, outlines specific regulations for asset conservation, lender liability, and deposit insurance protection to ensure financial stability and protect lender interests during property transactions.
The Asset Conservation, Lender Liability, and Deposit Insurance Protection Act of 1996 (ALDA) is a federal statute aimed at providing certain protections to lenders from liability for the environmental cleanup of properties serving as collateral, alongside mechanisms for asset conservation and deposit insurance in the banking sector.
The landmark 1990 court decision regarding a lender’s exposure to liability for environmental cleanup if the lender acquires the property by foreclosure.
A lender is a party that originates or holds loans. They can include entities such as commercial banks, thrifts, credit unions, mortgage bankers, and mortgage brokers.
