New Jersey's small banks will be less reluctant to make industrial real estate loans now that Gov. James J. Florio has signed an environmental shield law.
The law permits banks to foreclose on properties without facing responsibility for a cleanup. Banks were potentially responsible under the state's Spill Compensation and Control Act.
State Banking Commissioner Geoffrey M. Connor says banks already are starting to respond to the shield with loans.
Sees Big Role
Small banks are particularly fearful of environmental cleanups because their costs can far exceed the value of a tainted site. Mr. Connor agrees that many were afraid that such costs …