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t x <br /> 1 45000, 45005, and 45011. By its issuance of Notice and Order No. 00-01, SJPHS-EHD <br /> 2 contends to the contrary in some or all respects. <br /> 3 SECOND CAUSE OF ACTION <br /> (For Declaratory Relief-The Lender Liability Rule Applies to <br /> 4 the Alleged Disposal of Hazardous Wastes at the Lynch Property) <br /> 5 22. The allegations of paragraphs 1 through 21, inclusive, are hereby <br /> 6 incorporated as though fully set forth herein. <br /> 7 <br /> 23. DELTA FUNDING requests a judicial determination that it is not liable <br /> 8 under any state or local statute, regulation or ordinance to the extent that the statute, <br /> 9 regulation, or ordinance requires it to take removal or remedial action, pay a penalty, fine, <br /> 10 imposition or assessment with respect to the release or threatened release of hazardous <br /> 11 materials, at, from, or in connection with the Lynch Property, as provided by in Health and <br /> 12 Safety Code §§25548, et seq. A declaration of rights and duties of the parties pursuant to <br /> 13 California Code of Civil Procedure §1060, binding in any subsequent action or actions, is <br /> 14 appropriate and in the interest of justice in that an early determination of this controversy will <br /> 15 avoid multiplicity of litigation. <br /> 16 24. In Notice & Order 00-01, SJPHS-EHD alleged that hazardous waste <br /> 17 disposed of at the Lynch Property is a threat to human health and safety and the environment <br /> 18 and ordered DELTA FUNDING to remove such hazardous waste from the Lynch Property <br /> 19 and transport it to a permitted disposal or recycling facility. <br /> 20 25. Under the California "lender liability rule," a lender who forecloses on <br /> 21 property is exempt from liability under a state or local statute to the extent that the statute <br /> 22 requires the lender to take a removal or remedial action or pay a penalty or fine and the <br /> 23 liability arises from a release or threatened release of hazardous materials at, from or in <br /> 24 connection with the property. At all times relevant hereto, DELTA FUNDING has complied <br /> 25 with the requirements of the lender liability rule. DELTA FUNDING is therefore exempt <br /> 26 from liability under any law for the removal or remedial action or damages, penalties, fines, <br /> 27 impositions, or assessments relating to the release or threatened release of hazardous <br /> substances. <br /> 28 <br /> 6 <br /> COMPLAINT FOR DECLARATORY RELIEF AND DAMAGES <br />