Each depositor insured to at least $250,000 per insured bank

Home > Regulation & Examinations > Laws & Regulations > FDIC Law, Regulations, Related Acts



[Table of Contents] [Previous Page] [Next Page] [Search]

8000 - Miscellaneous Statutes and Regulations


TITLE XIII—NATIONAL FLOOD INSURANCE

SHORT TITLE

Sec. 1301.  This title may be cited as the "National Flood Insurance Act of 1968".

[Codified to 42 U.S.C. 4001]

[Source:  Section 1301 of title XIII of the Act of August 1, 1968 (Pub. L. No. 90--448; 82 Stat. 570), effective August 1, 1968]

NATURE AND LIMITATION OF INSURANCE COVERAGE

SEC. 1306

(b)  REGULATIONS RESPECTING AMOUNT OF COVERAGE.--In addition to any other terms and conditions under subsection (a) of this section, such regulations shall provide that--

(1)  any flood insurance coverage based on chargeable premium rates under section 4015 of this title which are less than the estimated premium rates under section 4014(a)(1) of this title shall not exceed--

(A)  in the case of residential properties--

(i)  $35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit,

(ii)  $10,000 aggregate liability per dwelling unit for any contents related to such unit, and

(iii)  in the States of Alaska and Hawaii, and in the Virgin Islands and Guam, the limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability for any single-family dwelling, and $150,000 for any residential structure containing more than one dwelling unit;

(B)  in the case of business properties which are owned or leased and operated by small business concerns, an aggregate liability with respect to any single structure, including any contents thereof related to premises of small business occupants (as that term is defined by the Director), which shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and shall be allocated among such occupants (or among the occupant or occupants and the owner) under regulations prescribed by the Director; except that the aggregate liability for the structure itself may in no case exceed $100,000; and

(C)  in the case of church properties and any other properties which may become eligible for flood insurance under section 1305--

(i)  $100,000 aggregate liability for any single structure, and

(ii)  $100,000 aggregate liability per unit for any contents related to such unit; and

(2)  in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (i) of subparagraph (A) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance so as to enable such insured or applicant to receive coverage up to a total amount (including such limits specified in paragraph (1)(A)(i)) of $250,000;

(3)  in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of section 4014(a)(1) of this title, additional flood insurance in excess of the limits specified in clause (ii) of subparagraph (A) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance so as to enable any such insured or applicant to receive coverage up to a total amount (including such limits specified in paragraph (1)(A)(ii)) of $100,000;

(4)  in the case of any nonresidential property, including churches, for which the risk premium rate is determined in accordance with the provisions of section 1307(a)(1), additional flood insurance in excess of the limits specified in subparagraphs (B) and (C) of paragraph (1) shall be made available to every insured upon renewal and every applicant for insurance, in respect to any single structure, up to a total amount (including such limit specified in subparagraph (B) or (C) of paragraph (1), as applicable) of $500,000 for each structure and $500,000 for any contents related to each structure; and

(5)  any flood insurance coverage which may be made available in excess of the limits specified in subparagraph (A), (B), or (C) of paragraph (1), shall be based only on chargeable premium rates under section 4015 of this title which are not less than the estimated premium rates under section 4014(a)(1) of this title, and the amount of such excess coverage shall not in any case exceed an amount equal to the applicable limit so specified (or allocated) under paragraph (1)(C), (2), (3), or (4), as applicable;

[Codified to 42 U.S.C. 4013b]

Source:  Section 1306(b) of title XIII of the Act of August 1, 1968 (Pub. L. No. 90--448; 82 Stat. 575), effective August 1, 1968; amended by section 2(c)(2) of the Act of December 22, 1971 (Pub. L. No. 92--213; 85 Stat. 775), effective December 22, 1971; section 101 of Title I of the Act of December 31, 1973 (Pub. L. No. 93--234; 87 Stat. 977), effective December 31, 1973; section 704(a) of title VII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1145), effective October 12, 1977; section 451(d)(1) of title IV of the Act of November 30, 1983 (Pub. L. No. 98--181; 97 Stat. 1229), effective November 30, 1983; section 527 of title V of the Act of September 23, 1994 (Pub. L. No. 103-325; 108 Stat. 2263), effective September 23, 1994]

NOTICE REQUIREMENTS

SEC. 1364. (a) NOTIFICATION OF SPECIAL FLOOD HAZARDS.--

(1)  REGULATED LENDING INSTITUTIONS.--Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, as a condition of making, increasing, extending, or renewing any loan secured by improved real estate or a mobile home that the regulated lending institution determines is located or is to be located in an area that has been identified by the Director under this title or the Flood Disaster Protection Act of 1973 as an area having special flood hazards, to notify the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) and the servicer of the loan of such special flood hazards, in writing, a reasonable period in advance of the signing of the purchase agreement, lease, or other documents involved in the transaction. The regulations shall also require that the regulated lending institution retain a record of the receipt of the notices by the purchaser or lessee and the servicer.

(2)  FEDERAL AGENCY LENDERS.--Each Federal agency lender shall by regulation require notification in the manner provided under paragraph (1) with respect to any loan that is made by the Federal agency lender and secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director under this title or the Flood Disaster Protection Act of 1973 as an area having special flood hazards. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1).

(3)  CONTENTS OF NOTICE.--Written notification required under this subsection shall include--

(A)  a warning, in a form to be established by the Director, stating that the building on the improved real estate securing the loan is located, or the mobile home securing the loan is or is to be located, in an area having special flood hazards;

(B)  a description of the flood insurance purchase requirements under section 102(b) of the Flood Disaster Protection Act of 1973;

(C)  a statement that flood insurance coverage may be purchased under the national flood insurance program and is also available from private insurers; and

(D)  any other information that the Director considers necessary to carry out the purposes of the national flood insurance program.

(b)  NOTIFICATION OF CHANGE OF SERVICER.--

(1)  LENDING INSTITUTIONS.--Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, in connection with the making, increasing, extending, renewing, selling, or transferring any loan described in subsection (a)(1), to notify the Director (or the designee of the Director) in writing during the term of the loan of the servicer of the loan. Such institutions shall also notify the Director (or such designee) of any change in the servicer of the loan, not later than 60 days after the effective date of such change. The regulations under this subsection shall provide that upon any change in the servicing of a loan, the duty to provide notification under this subsection shall transfer to the transferee servicer of the loan.

(2)  FEDERAL AGENCY LENDERS.--Each Federal agency lender shall by regulation provide for notification in the manner provided under paragraph (1) with respect to any loan described in subsection (a)(1) that is made by the Federal agency lender. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1) of this subsection.

(c)  NOTIFICATION OF EXPIRATION OF INSURANCE.--The Director (or the designee of the Director) shall, not less than 45 days before the expiration of any contract for flood insurance under this title, issue notice of such expiration by first class mail to the owner of the property covered by the contract, the servicer of any loan secured by the property covered by the contract, and (if known to the Director) the owner of the loan.

[Codified to 42 U.S.C. 4014a]

Source:  Section 1364 of title XIII of the Act of August 1, 1968 (Pub. L. No. 90--448), effective August 1, 1968; as added by section 816(a) of title VIII of the Act of August 22, 1974 (Pub. L. No. 93-383; 88 Stat. 739), effective August 22, 1974; amended by section 451(d)(1) of the Act of November 30, 1983 (Pub. L. No. 98--181; 97 Stat. 1229), effective November 30, 1983; section 527 of title V of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2263), effective September 23, 1994]


[Table of Contents] [Previous Page] [Next Page] [Search]

Last updated September 16, 2013 regs@fdic.gov