Federal Deposit
Insurance Corporation

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 22

[Docket No. 99-19]
RIN 1557-AB74

FEDERAL RESERVE SYSTEM

12 CFR Part 208

[Regulation H; Docket No. 10-52]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 339

RIN 3064-AC24

FARM CREDIT ADMINISTRATION

12 CFR Part 614

RIN 3052-AB89

NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 760

Loans in Areas Having Special Flood Hazards

AGENCIES: Office of the Comptroller of the Currency, Treasury (OCC);
Board of Governors of the Federal Reserve System (Board); Federal
Deposit Insurance Corporation (FDIC); Farm Credit Administration (FCA);
and National Credit Union Administration (NCUA) (collectively, the
Agencies).

ACTION: Joint final rule.

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SUMMARY: The Agencies jointly are making technical amendments to their
regulations on loans in areas having special flood hazards. This action
removes an outdated cross-reference to Federal Emergency Management
Agency (FEMA) regulations that had contained the text of the Standard
Flood Hazard Determination Form (Form). This action is intended to
update and make accurate the Agencies' regulations regarding loans in
areas having special flood hazards.

EFFECTIVE DATE: December 21, 1999.

FOR FURTHER INFORMATION CONTACT:
OCC: Carol Workman, Compliance Specialist, Community and Consumer
Policy, (202) 874-4858; Margaret Hesse, Senior Attorney, Community and
Consumer Law Division, (202) 874-5750; or Jacqueline L. Lussier, Senior
Attorney, Legislative and Regulatory Activities Division, Office of
Chief Counsel, (202) 874-5090, Office of the Comptroller of the
Currency, 250 E Street, SW, Washington, DC 20219.
Board: Kathleen C. Ryan, Attorney, Division of Consumer & Community
Affairs (202) 452-3667; Michael O'Rourke, Counsel, Legal Division,
(202) 452-3288, Board of Governors of the Federal Reserve System, 20th
Street and Constitution Avenue, NW, Washington, DC 20551.
FDIC: Ken Baebel, Senior Review Examiner, Division of Compliance
and Consumer Affairs, (202) 942-3086; Mark Mellon, Counsel, Regulation
and Legislation Section, Legal Division, (202) 942-3090; or Nancy
Schucker Recchia, Counsel, Regulation and Legislation Section, Legal
Division, (202) 898-8885, Federal Deposit Insurance Corporation, 550
17th Street, NW, Washington, DC 20429.
FCA: Tong-Ching Chang, Policy Analyst, Office of Policy and
Analysis, (703) 883-4498; or Wendy R. Laguarda, Senior Counsel, Office
of General Counsel, (703) 883-4020, Farm Credit Administration, 1501
Farm Credit Drive, McLean, VA 22102-5090. TDD (703) 883-4444.
NCUA: Kimberly Iverson, Program Officer, (703) 518-6375; or
Chrisanthy J. Loizos, Staff Attorney, Division of Operations, Office of
General Counsel, (703) 518-6540, National Credit Union Administration,
1775 Duke Street, Alexandria, VA 22314-3428.

SUPPLEMENTARY INFORMATION:

I. Background and Discussion of Final Rule

As required by federal law, FEMA established the Form for
determining whether a building or mobile home offered as collateral
security for a loan is or will be located in a special flood hazard
area, whether flood insurance is required, and whether federal flood
insurance is available. 42 U.S.C. 4104b. On July 6, 1995, FEMA
published a final rule that included the text of the Form at 44 CFR
part 65 (Appendix A). 60 FR 35276. The Agencies published a joint final
rule on the same date requiring lending institutions supervised by the
Agencies (regulated lenders) to use the Form. 60 FR 35286. On August
29, 1996, the Agencies published a joint final rule that revised their
respective flood insurance regulations. 61 FR 45684. This joint final
rule also required regulated lenders to use the Form. The Agencies'
regulations cross-referenced 44 CFR part 65 (Appendix A).
On May 21, 1998, FEMA published a final rule that removed 44 CFR
part 65 (Appendix A). 63 FR 27856. FEMA removed Appendix A to enhance
its ability to incorporate changes to the Form outside of the
rulemaking process, while continuing to provide full notice of the
availability of the Form to the public and to affected parties. Id.
Because FEMA removed 44 CFR part 65 (Appendix A), it is necessary
for the Agencies to make conforming changes to their regulations.\1\
This joint final rule removes the cross-reference in the Agencies'
respective flood insurance regulations to 44 CFR part 65 (Appendix A)
and replaces it with a statement that the Form is available from FEMA.
The Agencies are making substantively similar technical clarifying
changes to their regulations.
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\1\ The Office of Thrift Supervision published this change
separately. See 64 FR 69183, 69185 (December 10, 1999).
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Regulated lenders still must use the Form for determining whether a
building or mobile home offered as collateral security for a loan is or
will be located in a special flood hazard area, whether flood insurance
is required, and whether federal flood insurance is available.
Regulated lenders may obtain the Form from FEMA through the mail by
writing to FEMA Distribution Facility, P.O. Box 2012, Jessup, MD 20794-
2012; by telephone at (800) 480-2520; or from FEMA's Internet website
at <http://www.fema.gov/library/sfldfrm.pdf>.

II. Notice and Comment

This joint final rule makes only technical amendments removing an
outdated cross-reference to another agency's regulations and, in some
instances, adding information on the Form's availability. It makes no
substantive changes to the Agencies' regulations. The Agencies
therefore for good cause find that notice and public comment are
unnecessary under section 553(b)(B) of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)(B)).

III. Effective Date

Subject to certain exceptions, 12 U.S.C. 4802(b)(1) provides that
new regulations and amendments to regulations prescribed by a federal
banking agency that impose additional reporting, disclosures, or other
new requirements on an insured depository institution must take effect
on the first day of a calendar quarter that begins on or after the date
on which the regulations are published in final form. This joint final
rule is not subject to this delayed effective date requirement because
it imposes no new requirements. It simply makes technical amendments.
The Form is available from FEMA and regulated lenders will not need any
additional time to adjust

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their policies or practices in order to comply with this joint final
rule.
The Agencies also find good cause to dispense with the 30-day
delayed effective date requirement under section 553(d) of the APA (5
U.S.C. 553(d)). Section 553(d) of the APA provides, subject to certain
exceptions, that publication of a final rule must be made not less than
30 days before its effective date (5 U.S.C. 553(d)). A rulemaking is
excepted from this requirement where an agency finds good cause for an
earlier effective date and publishes such finding with rule (5 U.S.C.
553(d)(3)). As noted previously this joint final rule makes only
technical amendments to remove an outdated cross-reference to another
agency's regulations and, in some instances, adds information on the
Form's availability. It makes no substantive changes to the Agencies'
regulations. Accordingly, the Agencies find good cause to dispense with
the delayed effective date requirements and to make this joint final
rule effective upon publication in the Federal Register.

IV. Paperwork Reduction Act

The Agencies have determined that this joint final rulemaking does
not contain or modify a collection of information pursuant to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

V. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612) does not
apply to a rulemaking where a general notice of proposed rulemaking is
not required. 5 U.S.C. 603 and 604. As noted previously, the Agencies
have determined that it is not necessary to publish a notice of
proposed rulemaking for this joint final rule. Accordingly, the RFA's
requirements relating to an initial and final regulatory flexibility
analysis are not applicable. Moreover, since this joint final rule
imposes no new requirements and makes only technical amendments, this
joint final rule will not have a significant economic impact on a
substantial number of small entities.

VI. Small Business Regulatory Enforcement Fairness Act

The Congressional review provisions of the Small Business
Regulatory Enforcement Fairness Act of 1996 (SBREFA) (5 U.S.C. 801-808)
provide generally for agencies to report final rules to Congress and
the General Accounting Office (GAO) for review before the rules may
take effect. The reporting requirement is triggered when a federal
agency issues a final rule. The Agencies will submit the appropriate
reports to Congress and the GAO as required by SBREFA.
The Office of Management and Budget has found that this joint final
rule does not constitute a ``major rule'' as defined by SBREFA.

VII. Executive Order 12866

OCC: The OCC has determined that its portion of this joint final
rule is not a significant regulatory action as defined in Executive
Order 12866.

VIII. Unfunded Mandates Act of 1995

OCC: The Unfunded Mandates Reform Act of 1995, Pub. L. 104-4, 109
Stat. 48 (UMA), applies only when an agency is required to issue a
general notice of proposed rulemaking or a final rule for which the
agency published a general notice of proposed rulemaking (2 U.S.C.
1532). As noted previously, the Agencies have determined, for good
cause, that notice and comment is unnecessary. Accordingly, the UMA
does not require a budgetary impact analysis.
Nevertheless, the OCC has determined that its portion of this joint
final rule will not result in expenditures by state, local, and tribal
governments, or by the private sector, of $100 million or more in any
one year. Accordingly the OCC has not prepared a budgetary impact
statement or specifically addressed the regulatory alternatives
considered.

IX. Executive Order 13132 Statement

OCC: The OCC has determined that its portion of this joint final
rule does not constitute a policy that has federalism implications for
purposes of Executive Order 13132.
NCUA: Executive Order 13132 encourages independent regulatory
agencies to consider the impact of their regulatory actions on state
and local interests. In adherence to fundamental federalism principles,
NCUA, an independent regulatory agency as defined in 44 U.S.C. 3502(5),
voluntarily complies with the executive order. NCUA's portion of this
joint final rule will apply to all federally insured credit unions, but
it will not have substantial direct effects on the states, on the
relationship between the national government and the states, or on the
distribution of power and responsibilities among the various levels of
government. NCUA has determined that its portion of this joint final
rule does not constitute a policy that has federalism implications for
purposes of the executive order.

X. Assessment of Impact of Federal Regulation on Families

The Agencies have determined that this joint final rule will not
affect family well-being within the meaning of section 654 of the
Treasury Department Appropriations Act, 1999, enacted as part of the
Omnibus Consolidated and Emergency Supplemental Appropriations Act,
1999, Pub. L. 105-277, 112 Stat. 2681.

List of Subjects

12 CFR Part 22

Flood insurance, Mortgages, National banks, Reporting and
recordkeeping requirements.

12 CFR Part 208

Accounting, Agriculture, Banks, banking, Confidential business
information, Crime, Currency, Federal Reserve System, Flood insurance,
Mortgages, Reporting and recordkeeping requirements.

12 CFR Part 339

Flood insurance, Reporting and recordkeeping requirements.

12 CFR Part 614

Agriculture, Banks, banking, Flood insurance, Foreign trade,
Reporting and recordkeeping requirements, Rural areas.

12 CFR Part 760

Credit unions, Mortgages, Flood insurance, Reporting and
recordkeeping requirements.

Office of the Comptroller of the Currency

12 CFR CHAPTER I

Authority and Issuance

For the reasons set forth in the joint preamble, the OCC amends
part 22 of chapter I of title 12 of the Code of Federal Regulations as
set forth below:

PART 22--LOANS IN AREAS HAVING SPECIAL FLOOD HAZARDS

1. The authority citation for part 22 continues to read as follows:

Authority: 12 U.S.C. 93a; 42 U.S.C. 4012a, 4104a, 4104b, 4106,
and 4128.

2. In Sec. 22.6, paragraph (a) is revised to read as follows:

Sec. 22.6 Required use of standard flood hazard determination form.

(a) Use of form. A bank shall use the standard flood hazard
determination form developed by the Director of FEMA when determining
whether the building or mobile home offered as collateral security for
a loan is or will

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be located in a special flood hazard area in which flood insurance is
available under the Act. The standard flood hazard determination form
may be used in a printed, computerized, or electronic manner. A bank
may obtain the standard flood hazard determination form from FEMA, P.O.
Box 2012, Jessup, MD 20794-2012.
* * * * *
Dated: December 9, 1999.
John D. Hawke, Jr.,
Comptroller of the Currency.

Federal Reserve System

12 CFR CHAPTER II

Authority and Issuance

For the reasons set forth in the joint preamble, the Board amends
part 208 of chapter II of title 12 of the Code of Federal Regulations
as set forth below:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL
RESERVE SYSTEM (REGULATION H)

1. The authority citation for part 208 continues to read as
follows:

Authority: (12 U.S.C. 24, 36, 92(a), 93(a), 248(a), 248(c) 321-
338a,371d, 461, 481-486, 601, 611, 1814, 1816, 1818, 1820(d)(9),
1823(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1835a, 1882, 2901-
2907, 3105, 3310, 3331-3351, and 3906-3909, 15 U.S.C. 78b, 781(b),
781(g), 781(i), 78o-4(c)(5), 78q, 78q-1, and 78w; 31 U.S.C. 5318; 42
U.S.C. 4012a, 4104a, 4104b, 4106, and 4128.

2. In Sec. 208.25, paragraph (f)(1) is revised to read as follows:

Sec. 208.25 Loans in areas having special flood hazards.

* * * * *
(f) Required use of standard flood hazard determination form. (1)
use of form. A member bank shall use the standard flood hazard
determination form developed by the Director of FEMA when determining
whether the building or mobile home offered as collateral security for
a loan is or will be located in a special flood hazard area in which
flood insurance is available under the Act. The standard flood hazard
determination form may be used in a printed, computerized, or
electronic manner. A member bank may obtain the standard flood hazard
determination form by written request to FEMA, P.O. Box 2012, Jessup,
MD 20794-2012.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, December 10, 1999.
Jennifer J. Johnson,
Secretary of the Board.

Federal Deposit Insurance Corporation

12 CFR CHAPTER III

Authority and Issuance

For the reasons set forth in the joint preamble, the Board of
Directors of the FDIC amends part 339 of chapter III of title 12 of the
Code of Federal Regulations as set forth below:

PART 339--LOANS IN AREAS HAVING SPECIAL FLOOD HAZARDS

1. The authority citation for part 339 continues to read as
follows:

Authority: 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128.

2. In Sec. 339.6, paragraph (a) is revised to read as follows:

Sec. 339.6 Required use of standard flood hazard determination form.

(a) Use of form. A bank shall use the standard flood hazard
determination form developed by the Director of FEMA when determining
whether the building or mobile home offered as collateral security for
a loan is or will be located in a special flood hazard area in which
flood insurance is available under the Act. The standard flood hazard
determination form may be used in a printed, computerized, or
electronic manner. A non-member bank may obtain the standard flood
hazard determination form by written request to FEMA, P.O. Box 2012,
Jessup, MD 20794-2012.
* * * * *
By order of the Board of Directors.

Dated at Washington, DC, this 6th day of December 1999.

Federal Deposit Insurance Corporation
Robert E. Feldman,
Executive Secretary.

Farm Credit Administration

12 CFR Chapter VI

Authority and Issuance

For the reasons stated in the joint preamble, the Board amends part
614 of chapter VI of title 12 of the Code of Federal Regulations as set
forth below.

PART 614--LOAN POLICIES AND OPERATIONS

1. The authority citation for part 614 continues to read as
follows:

Authority: 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128; secs.
1.3, 1.5, 1.6, 1.7, 1.9, 1.10, 1.11, 2.0, 2.2, 2.3, 2.4, 2.10, 2.12,
2.13, 2.15, 3.0, 3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.3A, 4.12,
4.12A, 4.13, 413B, 4.14, 4.14A, 4.14C, 4.14D, 4.14E, 4.18, 4.18A,
4.19, 4.36, 4.37, 5.9, 5.10, 5.17, 7.0, 7.2, 7.6, 7.7, 7.8, 7.12,
7.13, 8.0, 8.5, 8.9 of the Farm Credit Act (12 U.S.C. 2011, 2013,
2014, 2015, 2017, 2018, 2019, 2071, 2073, 2074, 2075, 2091, 2093,
2094, 2096, 2121, 2122, 2124, 2128, 2129, 2131, 2141, 2149, 2154a,
2183, 2184, 2199, 2201, 2202, 2202a, 2202c, 2202d, 2202e, 2206,
2206a, 2207, 2219a, 2219b, 2243, 2244, 2252, 2279a, 2279a-2, 2279b,
2279b-1, 2279b-2, 2279f, 2279f-1, 2279aa, 2279aa-5, 2279aa-9); sec.
413 of Pub. L. 100-233, 101 Stat. 1568, 1639.

2. In Sec. 614.4940, paragraph (a) is revised to read as follows:

Sec. 614.4940 Required use of standard flood hazard determination
form.

(a) Use of form. System institutions must use the standard flood
hazard determination form developed by the Director of FEMA when
determining whether the building or mobile home offered as collateral
security for a loan is or will be located in a special flood hazard
area in which flood insurance is available under the 1968 Act. The
standard flood hazard determination form may be used in a printed,
computerized, or electronic manner. A System institution may obtain the
standard flood hazard determination form by written request to FEMA,
P.O. Box 2012, Jessup, MD 20794-2012.
* * * * *
Dated: December 8, 1999.
Vivian L. Portis,
Secretary, Farm Credit Administration Board.

National Credit Union Administration

12 CFR CHAPTER VII

Authority and Issuance

For the reasons set forth in the joint preamble, the NCUA amends
part 760 of chapter VII of title 12 of the Code of Federal Regulations
as set forth below.

PART 760--LOANS IN AREAS HAVING SPECIAL FLOOD HAZARDS

1. The authority citation for part 760 continues to read as
follows:

Authority: 12 U.S.C. 1757, 1789; 42 U.S.C. 4012a, 4104a, 4104b,
4106, and 4128.

2. In Sec. 760.6, paragraph (a) is revised to read as follows:

Sec. 760.6 Required use of standard flood hazard determination form.

(a) Use of form. A credit union shall use the standard flood hazard
determination form developed by the Director when determining whether
the building or mobile home offered as collateral security for a loan
is or will be located in a special flood hazard area in which flood
insurance is available under the Act. The standard flood hazard
determination form may be used

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