The term 'Fleet Factors' refers to a landmark 1990 court decision in the United States regarding a lender's potential exposure to liability for environmental cleanup if the lender acquires the property by foreclosure.
Lender liability refers to the legal responsibility of a financial institution, such as a bank, savings and loan association (S&L), or credit union, to a potential borrower when a loan commitment is made. If the lender fails to provide the loan as promised, it may be responsible for the damages suffered by the potential borrower.
