# 30


III-1.2000

                                               September 1, 1992

DJ 202-PL-242





Bernard B. Nebenzahl, Esq.
Nebenzahl & Kohn
Suite 800 Glendale Federal Building
9454 Wilshire Boulevard
Beverly Hills, California  90212-2988

Dear Mr. Nebenzahl:

     This letter is in response to your request for guidance
regarding the obligations under the Americans with Disabilities
Act of 1990 ("ADA") of financial institutions that foreclose on
public accommodations.

     The ADA authorizes this Department to provide technical
assistance to entities that are subject to Title III.  This
letter provides informal guidance to assist you in understanding
the ADA and the Department's regulation.  However, this technical
assistance does not constitute a determination by the Department
of Justice of rights or responsibilities under the ADA and does
not constitute a binding determination by the Department of
Justice.  

     Section 302(a) of the ADA prohibits discrimination on the
basis of disability by "any person who owns, leases (or leases
to), or operates a place of public accommodation."  See also
28 C.F.R. {36.104.  Accordingly, Title III applies to a financial
institution that acquires ownership of a place of public
accommodation through foreclosure.  Neither the statute nor the
Department's regulation has an exemption for a private entity
that owns a place of public accommodation because the ownership
is temporary or because the private entity, e.g., financial
institution, intends to liquidate its interest in the place of
public accommodation.

     Because a financial institution that owns a place of public
accommodation is covered by the ADA, it is responsible for  
removing existing barriers that are "readily achievable" as
defined by Section 301(9) of the ADA and Section 36.304 of the
Department's regulation.  For further discussion of the concept 
of barrier removal please see pages 35,553-54 of the enclosed
regulation and pages 28-39 of the enclosed Technical Assistance 
Manual.  The extent of its obligation to remove existing barriers
will depend on a variety of factors, including the nature of the
legal relationships between the financial institution and the
place of public accommodation and the likely term of ownership. 
Of course, the exact obligation of any particular financial
institution will have to be determined on a case-by-case basis.

     I hope this information has been helpful to you.

                                   Sincerely,



                         
                                   John L. Wodatch
                                      Director
                    Office on the Americans with Disabilities Act
                    
Enclosures (2)
     Title III regulation
     Title III Technical Assistance Manual