Environmental Indemnity Agreement

Indemnitor (Borrower/Owner): [Name] · Indemnified Party (Lender): [Name] · Property: [Address] · Date: [Date]

1. Indemnification

Indemnitor agrees to indemnify, defend, and hold harmless Indemnified Party from any claims, losses, cleanup costs, fines, or liabilities arising from the presence, release, or disposal of hazardous substances on, under, or from the property, whether occurring before or during the loan term, [with exceptions in Section 3].

2. Representations

Indemnitor represents that, to the best of its knowledge, [after conducting a Phase I Environmental Site Assessment], the property is not subject to any known environmental contamination requiring remediation, except: [List, or "none known"].

3. Carve-Out for Lender's Own Actions

This indemnity does not cover contamination caused solely by Indemnified Party's own actions after taking possession of the property (e.g. following foreclosure), to the extent such contamination was not present or caused by Indemnitor before that point.

4. Survival

This indemnity survives repayment of the loan, release of the mortgage/deed of trust, and even foreclosure — it is a personal obligation of Indemnitor, separate from the loan itself and any non-recourse provisions in the loan documents.

5. Cooperation

Indemnitor will cooperate with any environmental investigation or remediation, providing access to the property and relevant records upon request.

6. No Cap on Liability

[State whether this indemnity is capped at a specific amount, or unlimited — environmental indemnities are often deliberately left uncapped given the potentially large size of cleanup liabilities.]

Indemnitor: ______________________ Date: ____________ Indemnified Party: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Environmental indemnities are specifically designed to survive even a "non-recourse" loan's general limitation on personal liability (Section 4) — lenders carve this out because environmental cleanup costs can be so severe that they insist on personal liability for this risk alone, even when the rest of the loan is non-recourse.*