There is a brief section in the loan policy that reads as follows:

The Americans with Disabilities Act (ADA) imposes certain requirements on buildings that are places of “public accommodations” or commercial facilities as of January 26, 1992. The Bank intends to comply with the requirements of ADA in managing its OREO properties.

Before the Bank consummates a foreclosure or deed-in-lieu transaction, an ADA survey is required. If the survey identifies possible ADA-required improvements, a cost estimate is to be obtained.

I'm not very familiar with these requirements and am assuming this is regarding commercial properties. Is the ADA survey something the customer would complete for the bank? Would appreciate any guidance. Thank you.

ADA Title III -- Public Accommodations

Title III covers businesses and nonprofit service providers that are public accommodations, privately operated entities offering certain types of courses and examinations, privately operated transportation, and commercial facilities. Public accommodations are private entities who own, lease, lease to, or operate facilities such as restaurants, retail stores, hotels, movie theaters, private schools, convention centers, doctors' offices, homeless shelters, transportation depots, zoos, funeral homes, day care centers, and recreation facilities including sports stadiums and fitness clubs. Transportation services provided by private entities are also covered by Title III.

The U.S. Department of Justice provides free ADA materials. Printed materials may be ordered by calling the ADA Information Line (1-800-514-0301 (Voice) or 1-800-514-0383 (TDD)). Automated service is available 24-hours a day for recorded information and to order publications.

Thanks Skyline. I found a link to Title III but not finding anything that discusses an "ADA survey". I've never seen this in a loan policy and I've been asked if it's actually required to be stated in the loan policy and who is responsible for the survey. If this is a bank OREO property, would the bank be required to complete such a survey?

When your customer acquired the commercial facility they would have also had access to an ADA survey. As long as there have not been any renovations to the building that would no longer comply with the Act, this survey would still be valid.

This verbiage was added to many loan policies once the Act became final, but it has become so standard now...I would just request the most recent copy of the survey.