502.03

Environmental Indemnity Agreement

Requirements

You must:

  • consider revisions to the Environmental Indemnity Agreement (Form 6085) to protect you and Fannie Mae from liability associated with any
    • REC/CREC (including the cost to investigate/remediate any such condition), and
    • violation of Environmental LawsEnvironmental LawsAll current federal, state, and local laws, ordinances, regulations, standards, rules, policies, and other governmental requirements, administrative rulings, court judgments, and decrees, and all amendments thereto, relating to pollution or protection of human health, wildlife, wetlands, natural… by the BorrowerBorrowerPerson who is the obligor per the Note. ; 
  • document your evaluation of potential revisions, including at a minimum, whether the following revisions are appropriate:
    • additional representation and warranty where the BorrowerBorrowerPerson who is the obligor per the Note. disclaims responsibility for any REC/CREC, if appropriate and accurate; and
    • additional covenant(s) requiring
      • implementation of the Remediation Plan,
      • compliance with any Environmental Activity and Use LimitationsEnvironmental Activity and Use LimitationsLegal or physical restrictions or limitations on the use of, or access to, all or any portion of a site, facility, groundwater, soils, or other media at, on, about or under a site or facility to reduce or eliminate potential exposure to Hazardous Materials or to prevent activities that could… and/or institutional or engineering controls, and
      • maintenance of BorrowerBorrowerPerson who is the obligor per the Note. eligibility for applicable liability protection status;
  • specifically identifying any liability associated with the REC/CREC in the indemnification provisions; and
  • other required terms and conditions based on Fannie Mae environmental counsel review.