Seán Sherlock (Cork East, Labour)
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Question 143: To ask the Minister for Finance his views on the fact that some development sites could potentially have a negative value derived from the need to fence, clean, insure and make safe these sites; his further views on whether this could potentially have a negative impact on the public purse in certain instances when such properties are transferred to National Asset Management Agency; and if he will make a statement on the matter. [37689/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The NAMA Bill sets out a detailed framework for the valuation of loan assets and the security underlying each loan asset. NAMA will conduct due diligence on each loan and examine in detail all documentation relating to the underlying security and the loan contract itself. As a consequence the circumstances to which the Deputy refers to will be factored into the valuation of a loan.

The legislation also allows NAMA to refuse to acquire a loan where for example the security is not adequate or has not been perfected.