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An indemnification clause is a legally binding agreement between two parties specifying that one party (the indemnifying party) will compensate the other party (the indemnified party) for any losses or damages that may arise from a particular event or circumstance.
Environmental indemnification is a contractual agreement where one party agrees to compensate another for any losses or damages arising from environmental issues related to a property or operation.
An indemnification clause is an agreement where one party, the indemnifier, agrees to cover the losses or damages of the other party, the indemnitee, under specific circumstances defined in the contract. It is also known as the indemnity clause or the hold harmless provision.
Indemnity Agreement: Although similar to a hold harmless agreement, an indemnity agreement is an arrangement whereby one party agrees to pay the other party for any damages regardless of who is at fault.
With respect to the conditions the indemnitor must satisfy in order to receive the sunset, the most important condition is that the borrower must deliver a clean environmental report, in form and substance reasonably acceptable to the lender, at the time the loan is repaid in full (or closer to the date of the sunset)
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Environmental liabilities affect businesses from a broad spectrum of industries. These claims come in all sizes, ranging from massive oil spills to small-scale hazardous waste left at a construction site.

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