Loading (50 kb)...'
(continued)
Emergency Assistance Act, which is classified principally to
chapter 68 (Sec. 5121 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set
out under section 5121 of this title and Tables.
-COD-
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of
1973, and not as part of National Flood Insurance Act of 1968 which
comprises this chapter.
-MISC1-
AMENDMENTS
1994 - Subsec. (a)(5). Pub. L. 103-325, Sec. 511(a)(1), added
par. (5) and struck out former par. (5) which read as follows: "
'Federal instrumentality responsible for the supervision, approval,
regulation, or insuring of banks, savings and loan associations, or
similar institutions' means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the
Comptroller of the Currency, the Federal Home Loan Bank Board, the
Federal Savings and Loan Insurance Corporation, and the National
Credit Union Administration; and".
Subsec. (a)(7) to (11). Pub. L. 103-325, Sec. 511(a)(2), (3),
added pars. (7) to (11).
1988 - Subsec. (a)(4). Pub. L. 100-707 substituted "Disaster
Relief and Emergency Assistance Act" for "Disaster Relief Act of
1974".
1983 - Subsec. (a)(6). Pub. L. 98-181, Sec. 451(e)(2),
substituted definition of "Director" meaning the Director of the
Federal Emergency Management Agency for definition of "Secretary"
meaning the Secretary of Housing and Urban Development.
Subsec. (b). Pub. L. 98-181, Sec. 451(e)(1), substituted
"Director" for "Secretary".
1977 - Subsec. (a)(4). Pub. L. 95-128 substituted "assistance
pursuant to the Disaster Relief Act of 1974 (other than assistance
under such Act in connection with a flood)" for "assistance for
emergency work essential for the protection and preservation of
life and property performed pursuant to the Disaster Relief Act of
1970 or any subsequent Act of Congress which supersedes or modifies
the Disaster Relief Act of 1970".
-TRANS-
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of
the Federal Emergency Management Agency, including the functions of
the Director of the Federal Emergency Management Agency relating
thereto, to the Secretary of Homeland Security, and for treatment
of related references, see sections 313(1), 551(d), 552(d), and 557
of Title 6, Domestic Security, and the Department of Homeland
Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
-End-
-CITE-
42 USC SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE
PROGRAM 01/19/04
-EXPCITE-
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 50 - NATIONAL FLOOD INSURANCE
SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM
-HEAD-
SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 4041, 4051, 4056, 4071
of this title.
-End-
-CITE-
42 USC Sec. 4011 01/19/04
-EXPCITE-
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 50 - NATIONAL FLOOD INSURANCE
SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM
-HEAD-
Sec. 4011. Authorization to establish and carry out program
-STATUTE-
(a) Authorization and establishment
To carry out the purposes of this chapter, the Director of the
Federal Emergency Management Agency is authorized to establish and
carry out a national flood insurance program which will enable
interested persons to purchase insurance against loss resulting
from physical damage to or loss of real property or personal
property related thereto arising from any flood occurring in the
United States.
(b) Additional coverage for compliance with land use and control
measures
The national flood insurance program established pursuant to
subsection (a) of this section shall enable the purchase of
insurance to cover the cost of compliance with land use and control
measures established under section 4102 of this title for -
(1) properties that are repetitive loss structures;
(2) properties that have flood damage in which the cost of
repairs equals or exceeds 50 percent of the value of the
structure at the time of the flood event; and
(3) properties that have sustained flood damage on multiple
occasions, if the Director determines that it is cost-effective
and in the best interests of the National Flood Insurance Fund to
require compliance with the land use and control measures.
The Director shall impose a surcharge on each insured of not more
than $75 per policy to provide cost of compliance coverage in
accordance with the provisions of this subsection.
(c) Participation and risk sharing by insurers
In carrying out the flood insurance program the Director shall,
to the maximum extent practicable, encourage and arrange for -
(1) appropriate financial participation and risk sharing in the
program by insurance companies and other insurers, and
(2) other appropriate participation, on other than a
risk-sharing basis, by insurance companies and other insurers,
insurance agents and brokers, and insurance adjustment
organizations,
in accordance with the provisions of subchapter II of this chapter.
-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1304, Aug. 1, 1968, 82 Stat. 574;
Pub. L. 98-181, title IV, Sec. 451(d)(1), (2), Nov. 30, 1983, 97
Stat. 1229; Pub. L. 103-325, title V, Sec. 555(a), Sept. 23, 1994,
108 Stat. 2274.)
-REFTEXT-
REFERENCES IN TEXT
This chapter, referred to in subsec. (a), is title XIII of Pub.
L. 90-448, Aug. 1, 1968, 82 Stat. 572, as amended, known as the
National Flood Insurance Act of 1968, which enacted this chapter,
amended section 2414 of this title, repealed sections 2401 to 2413
and 2415 to 2421 of this title, and enacted provisions set out as a
note under section 4001 of this title. For complete classification
of this Act to the Code, see Short Title note set out under section
4001 of this title and Tables.
-MISC1-
AMENDMENTS
1994 - Subsecs. (b), (c). Pub. L. 103-325 added subsec. (b) and
redesignated former subsec. (b) as (c).
1983 - Subsec. (a). Pub. L. 98-181, Sec. 451(d)(2), substituted
"Director of the Federal Emergency Management Agency" for
"Secretary of Housing and Urban Development".
Subsec. (b). Pub. L. 98-181, Sec. 451(d)(1), substituted
"Director" for "Secretary".
EFFECTIVE DATE OF 1994 AMENDMENT
Section 555(b) of Pub. L. 103-325 provided that: "The provisions
of subsection (a) [amending this section] shall apply only to
properties that sustain flood-related damage after the date of
enactment of this Act [Sept. 23, 1994]."
-TRANS-
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of
the Federal Emergency Management Agency, including the functions of
the Director of the Federal Emergency Management Agency relating
thereto, to the Secretary of Homeland Security, and for treatment
of related references, see sections 313(1), 551(d), 552(d), and 557
of Title 6, Domestic Security, and the Department of Homeland
Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
-MISC2-
FLOOD INSURANCE INTERAGENCY TASK FORCE
Section 561 of Pub. L. 103-325 provided that:
"(a) Establishment. - There is hereby established an interagency
task force to be known as the Flood Insurance Task Force (in this
section referred to as the 'Task Force').
"(b) Membership. -
"(1) In general. - The Task Force shall be composed of 10
members, who shall be the designees of -
"(A) the Federal Insurance Administrator;
"(B) the Federal Housing Commissioner;
"(C) the Secretary of Veterans Affairs;
"(D) the Administrator of the Farmers Home Administration;
"(E) the Administrator of the Small Business Administration;
"(F) the Chairman of the Board of Directors of the Farm
Credit Administration;
"(G) a designee of the Financial Institutions Examination
Council;
"(H) the Director of the Office of Federal Housing Enterprise
Oversight;
"(I) the chairman of the Board of Directors of the Federal
Home Loan Mortgage Corporation; and
"(J) the chairman of the Board of Directors of the Federal
National Mortgage Association.
"(2) Qualifications. - Members of the Task Force shall be
designated for membership on the Task Force by reason of
demonstrated knowledge and competence regarding the national
flood insurance program.
"(c) Duties. - The Task Force shall carry out the following
duties:
"(1) Recommendations of standardized enforcement procedures. -
Make recommendations to the head of each Federal agency and
enterprise referred to under subsection (b)(1) regarding
establishment or adoption of standardized enforcement procedures
among such agencies and corporations responsible for enforcing
compliance with the requirements under the national flood
insurance program to ensure fullest possible compliance with such
requirements.
"(2) Study of compliance assistance. - Conduct a study of the
extent to which Federal agencies and the secondary mortgage
market can provide assistance in ensuring compliance with the
requirements under the national flood insurance program and
submit to the Congress a report describing the study and any
conclusions.
"(3) Study of compliance model. - Conduct a study of the extent
to which existing programs of Federal agencies and corporations
for compliance with the requirements under the national flood
insurance program can serve as a model for other Federal agencies
responsible for enforcing compliance, and submit to the Congress
a report describing the study and any conclusions.
"(4) Recommendations for enforcement and compliance procedures.
- Develop recommendations regarding enforcement and compliance
procedures, based on the studies and findings of the Task Force,
and publish such recommendations.
"(5) Study of determination fees. - Conduct a study of -
"(A) the reasonableness of fees charged pursuant to 102(h) of
the Flood Disaster Protection Act of 1973 [42 U.S.C. 4012a(h)]
for costs of determining whether the property securing a loan
is located in an area having special flood hazards; and
"(B) whether the fees charged pursuant to such section by
lenders and servicers are greater than the amounts paid by such
lenders and servicers to persons actually conducting such
determinations and the extent to which the fees exceed such
amounts.
"(d) Noncompensation. - Members of the Task Force shall receive
no additional pay by reason of their service on the Task Force.
"(e) Chairperson. - The members of the Task Force shall elect one
member as chairperson of the Task Force.
"(f) Meetings and Action. - The Task Force shall meet at the call
of the chairman or a majority of the members of the Task Force and
may take action by a vote of the majority of the members. The
Federal Insurance Administrator shall coordinate and call the
initial meeting of the Task Force.
"(g) Officers. - The chairperson of the Task Force may appoint
any officers to carry out the duties of the Task Force under
subsection (c).
"(h) Staff of Federal Agencies. - Upon request of the chairperson
of the Task Force, the head of any of the Federal agencies and
entities referred to under subsection (b)(1) may detail, on a
nonreimbursable basis, any of the personnel of such agency to the
Task Force to assist the Task Force in carrying out its duties
under this section.
"(i) Powers. - In carrying out this section, the Task Force may
hold hearings, sit and act at times and places, take testimony,
receive evidence and assistance, provide information, and conduct
research as the Task Force considers appropriate.
"(j) Termination. - The Task Force shall terminate upon the
expiration of the 24-month period beginning upon the designation of
the last member to be designated under subsection (b)(1)."
-End-
-CITE-
42 USC Sec. 4012 01/19/04
-EXPCITE-
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 50 - NATIONAL FLOOD INSURANCE
SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM
-HEAD-
Sec. 4012. Scope of program and priorities
-STATUTE-
(a) Priority for insurance for certain residential and church
properties and business concerns
In carrying out the flood insurance program the Director shall
afford a priority to making flood insurance available to cover
residential properties which are designed for the occupancy of from
one to four families, church properties, and business properties
which are owned or leased and operated by small business concerns.
(b) Availability of insurance for other properties
If on the basis of -
(1) studies and investigations undertaken and carried out and
information received or exchanged under section 4014 of this
title, and
(2) such other information as may be necessary,
the Director determines that it would be feasible to extend the
flood insurance program to cover other properties, he may take such
action under this chapter as from time to time may be necessary in
order to make flood insurance available to cover, on such basis as
may be feasible, any types and classes of -
(A) other residential properties,
(B) other business properties,
(C) agricultural properties,
(D) properties occupied by private nonprofit organizations, and
(E) properties owned by State and local governments and
agencies thereof,
and any such extensions of the program to any types and classes of
these properties shall from time to time be prescribed in
regulations.
(c) Availability of insurance in States or areas evidencing
positive interest in securing insurance and assuring adoption of
adequate land use and control measures
The Director shall make flood insurance available in only those
States or areas (or subdivisions thereof) which he has determined
have -
(1) evidenced a positive interest in securing flood insurance
coverage under the flood insurance program, and
(2) given satisfactory assurance that by December 31, 1971,
adequate land use and control measures will have been adopted for
the State or area (or subdivision) which are consistent with the
comprehensive criteria for land management and use developed
under section 4102 of this title, and that the application and
enforcement of such measures will commence as soon as technical
information on floodways and on controlling flood elevations is
available.
-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1305, Aug. 1, 1968, 82 Stat. 574;
Pub. L. 91-152, title IV, Sec. 410(a), Dec. 24, 1969, 83 Stat. 397;
Pub. L. 92-213, Sec. 2(c)(1), Dec. 22, 1971, 85 Stat. 775; Pub. L.
98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)
-MISC1-
AMENDMENTS
1983 - Pub. L. 98-181 substituted "Director" for "Secretary"
wherever appearing.
1971 - Subsec. (a). Pub. L. 92-213 inserted reference to church
properties.
1969 - Subsec. (c)(2). Pub. L. 91-152 substituted "December 31,
1971, adequate" for "June 30, 1970, permanent".
-TRANS-
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of
the Federal Emergency Management Agency, including the functions of
the Director of the Federal Emergency Management Agency relating
thereto, to the Secretary of Homeland Security, and for treatment
of related references, see sections 313(1), 551(d), 552(d), and 557
of Title 6, Domestic Security, and the Department of Homeland
Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4013 to 4015 of this
title.
-End-
-CITE-
42 USC Sec. 4012a 01/19/04
-EXPCITE-
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 50 - NATIONAL FLOOD INSURANCE
SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM
-HEAD-
Sec. 4012a. Flood insurance purchase and compliance requirements
and escrow accounts
-STATUTE-
(a) Amount and term of coverage
After the expiration of sixty days following December 31, 1973,
no Federal officer or agency shall approve any financial assistance
for acquisition or construction purposes for use in any area that
has been identified by the Director as an area having special flood
hazards and in which the sale of flood insurance has been made
available under the National Flood Insurance Act of 1968 [42 U.S.C.
4001 et seq.], unless the building or mobile home and any personal
property to which such financial assistance relates is covered by
flood insurance in an amount at least equal to its development or
project cost (less estimated land cost) or to the maximum limit of
coverage made available with respect to the particular type of
property under the National Flood Insurance Act of 1968, whichever
is less: Provided, That if the financial assistance provided is in
the form of a loan or an insurance or guaranty of a loan, the
amount of flood insurance required need not exceed the outstanding
principal balance of the loan and need not be required beyond the
term of the loan. The requirement of maintaining flood insurance
shall apply during the life of the property, regardless of transfer
of ownership of such property.
(b) Requirement for mortgage loans
(1) Regulated lending institutions
Each Federal entity for lending regulation (after consultation
and coordination with the Financial Institutions Examination
Council established under the Federal Financial Institutions
Examination Council Act of 1974 [12 U.S.C. 3301 et seq.]) shall
by regulation direct regulated lending institutions not to make,
increase, extend, or renew any loan secured by improved real
estate or a mobile home located or to be located in an area that
has been identified by the Director as an area having special
flood hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968 [42
U.S.C. 4001 et seq.], unless the building or mobile home and any
personal property securing such loan is covered for the term of
the loan by flood insurance in an amount at least equal to the
outstanding principal balance of the loan or the maximum limit of
coverage made available under the Act with respect to the
particular type of property, whichever is less.
(2) Federal agency lenders
A Federal agency lender may not make, increase, extend, or
renew any loan secured by improved real estate or a mobile home
located or to be located in an area that has been identified by
the Director as an area having special flood hazards and in which
flood insurance has been made available under the National Flood
Insurance Act of 1968, unless the building or mobile home and any
personal property securing such loan is covered for the term of
the loan by flood insurance in the amount provided in paragraph
(1). Each Federal agency lender shall issue any regulations
necessary to carry out this paragraph. Such regulations shall be
consistent with and substantially identical to the regulations
issued under paragraph (1).
(3) Government-sponsored enterprises for housing
The Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation shall implement procedures reasonably
designed to ensure that, for any loan that is -
(A) secured by improved real estate or a mobile home located
in an area that has been identified, at the time of the
origination of the loan or at any time during the term of the
loan, by the Director as an area having special flood hazards
and in which flood insurance is available under the National
Flood Insurance Act of 1968, and
(B) purchased by such entity,
the building or mobile home and any personal property securing
the loan is covered for the term of the loan by flood insurance
in the amount provided in paragraph (1).
(4) Applicability
(A) Existing coverage
Except as provided in subparagraph (B), paragraph (1) shall
apply on September 23, 1994.
(B) New coverage
Paragraphs (2) and (3) shall apply only with respect to any
loan made, increased, extended, or renewed after the expiration
of the 1-year period beginning on September 23, 1994. Paragraph
(1) shall apply with respect to any loan made, increased,
extended, or renewed by any lender supervised by the Farm
Credit Administration only after the expiration of the period
under this subparagraph.
(C) Continued effect of regulations
Notwithstanding any other provision of this subsection, the
regulations to carry out paragraph (1), as in effect
immediately before September 23, 1994, shall continue to apply
until the regulations issued to carry out paragraph (1) as
amended by section 522(a) of Public Law 103-325 take effect.
(c) Exceptions to purchase requirements
(1) State-owned property
Notwithstanding the other provisions of this section, flood
insurance shall not be required on any State-owned property that
is covered under an adequate State policy of self-insurance
satisfactory to the Director. The Director shall publish and
periodically revise the list of States to which this subsection
applies.
(2) Small loans
Notwithstanding any other provision of this section,
subsections (a) and (b) of this section shall not apply to any
loan having -
(A) an original outstanding principal balance of $5,000 or
less; and
(B) a repayment term of 1 year or less.
(d) Escrow of flood insurance payments
(1) Regulated lending institutions
Each Federal entity for lending regulation (after consultation
and coordination with the Financial Institutions Examination
Council) shall by regulation require that, if a regulated lending
institution requires the escrowing of taxes, insurance premiums,
fees, or any other charges for a loan secured by residential
improved real estate or a mobile home, then all premiums and fees
for flood insurance under the National Flood Insurance Act of
1968 [42 U.S.C. 4001 et seq.] for the real estate or mobile home
shall be paid to the regulated lending institution or other
servicer for the loan in a manner sufficient to make payments as
due for the duration of the loan. Upon receipt of the premiums,
the regulated lending institution or servicer of the loan shall
deposit the premiums in an escrow account on behalf of the
borrower. Upon receipt of a notice from the Director or the
provider of the insurance that insurance premiums are due, the
regulated lending institution or servicer shall pay from the
escrow account to the provider of the insurance the amount of
insurance premiums owed.
(2) Federal agency lenders
Each Federal agency lender shall by regulation require and
provide for escrow and payment of any flood insurance premiums
and fees relating to residential improved real estate and mobile
homes securing loans made by the Federal agency lender under the
circumstances and in the manner provided under paragraph (1). Any
regulations issued under this paragraph shall be consistent with
and substantially identical to the regulations issued under
paragraph (1).
(3) Applicability of RESPA
Escrow accounts established pursuant to this subsection shall
be subject to the provisions of section 10 of the Real Estate
Settlement Procedures Act of 1974 [12 U.S.C. 2609].
(4) "Residential improved real estate" defined
For purposes of this subsection, the term "residential improved
real estate" means improved real estate for which the improvement
is a residential building.
(5) Applicability
This subsection shall apply only with respect to any loan made,
increased, extended, or renewed after the expiration of the
1-year period beginning on September 23, 1994.
(e) Placement of flood insurance by lender
(1) Notification to borrower of lack of coverage
If, at the time of origination or at any time during the term
of a loan secured by improved real estate or by a mobile home
located in an area that has been identified by the Director (at
the time of the origination of the loan or at any time during the
term of the loan) as an area having special flood hazards and in
which flood insurance is available under the National Flood
Insurance Act of 1968 [42 U.S.C. 4001 et seq.], the lender or
servicer for the loan determines that the building or mobile home
and any personal property securing the loan is not covered by
flood insurance or is covered by such insurance in an amount less
than the amount required for the property pursuant to paragraph
(1), (2), or (3) of subsection (b) of this section, the lender or
servicer shall notify the borrower under the loan that the
borrower should obtain, at the borrower's expense, an amount of
flood insurance for the building or mobile home and such personal
property that is not less than the amount under subsection (b)(1)
of this section, for the term of the loan.
(2) Purchase of coverage on behalf of borrower
If the borrower fails to purchase such flood insurance within
45 days after notification under paragraph (1), the lender or
servicer for the loan shall purchase the insurance on behalf of
the borrower and may charge the borrower for the cost of premiums
and fees incurred by the lender or servicer for the loan in
purchasing the insurance.
(3) Review of determination regarding required purchase
(A) In general
The borrower and lender for a loan secured by improved real
estate or a mobile home may jointly request the Director to
review a determination of whether the building or mobile home
is located in an area having special flood hazards. Such
request shall be supported by technical information relating to
the improved real estate or mobile home. Not later than 45 days
after the Director receives the request, the Director shall
review the determination and provide to the borrower and the
lender with a letter stating whether or not the building or
mobile home is in an area having special flood hazards. The
determination of the Director shall be final.
(B) Effect of determination
Any person to whom a borrower provides a letter issued by the
Director pursuant to subparagraph (A), stating that the
building or mobile home securing the loan of the borrower is
not in an area having special flood hazards, shall have no
obligation under this title )1(! to require the purchase of
flood insurance for such building or mobile home during the
period determined by the Director, which shall be specified in
the letter and shall begin on the date on which such letter is
provided.
(C) Effect of failure to respond
If a request under subparagraph (A) is made in connection
with the origination of a loan and the Director fails to
provide a letter under subparagraph (A) before the later of (i)
the expiration of the 45-day period under such subparagraph, or
(ii) the closing of the loan, no person shall have an
obligation under this title )1(! to require the purchase of
flood insurance for the building or mobile home securing the
loan until such letter is provided.
(4) Applicability
This subsection shall apply to all loans outstanding on or
after September 23, 1994.
(f) Civil monetary penalties for failure to require flood insurance
or notify
(1) Civil monetary penalties against regulated lenders
Any regulated lending institution that is found to have a
pattern or practice of committing violations under paragraph (2)
shall be assessed a civil penalty by the appropriate Federal
entity for lending regulation in the amount provided under
paragraph (5).
(2) Lender violations
The violations referred to in paragraph (1) shall include -
(A) making, increasing, extending, or renewing loans in
violation of -
(i) the regulations issued pursuant to subsection (b) of
this section;
(ii) the escrow requirements under subsection (d) of this
section; or
(iii) the notice requirements under section 1364 of the
National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; or
(B) failure to provide notice or purchase flood insurance
coverage in violation of subsection (e) of this section.
(3) Civil monetary penalties against GSE's
(A) In general
If the Federal National Mortgage Association or the Federal
Home Loan Mortgage Corporation is found by the Director of the
Office of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development to have a pattern
or practice of purchasing loans in violation of the procedures
established pursuant to subsection (b)(3) of this section, the
Director of such Office shall assess a civil penalty against
such enterprise in the amount provided under paragraph (5) of
this subsection.
(B) "Enterprise" defined
For purposes of this subsection, the term "enterprise" means
the Federal National Mortgage Association or the Federal Home
Loan Mortgage Corporation.
(4) Notice and hearing
A penalty under this subsection may be issued only after notice
and an opportunity for a hearing on the record.
(5) Amount
A civil monetary penalty under this subsection may not exceed
$350 for each violation under paragraph (2) or paragraph (3). The
total amount of penalties assessed under this subsection against
any single regulated lending institution or enterprise during any
calendar year may not exceed $100,000.
(6) Lender compliance
Notwithstanding any State or local law, for purposes of this
subsection, any regulated lending institution that purchases
flood insurance or renews a contract for flood insurance on
behalf of or as an agent of a borrower of a loan for which flood
insurance is required shall be considered to have complied with
the regulations issued under subsection (b) of this section.
(7) Effect of transfer on liability
Any sale or other transfer of a loan by a regulated lending
institution that has committed a violation under paragraph (1),
that occurs subsequent to the violation, shall not affect the
liability of the transferring lender with respect to any penalty
under this subsection. A lender shall not be liable for any
violations relating to a loan committed by another regulated
lending institution that previously held the loan.
(8) Deposit of penalties
Any penalties collected under this subsection shall be paid
into the National Flood Mitigation Fund under section 1367 of the
National Flood Insurance Act of 1968 [42 U.S.C. 4104d].
(9) Additional penalties
Any penalty under this subsection shall be in addition to any
civil remedy or criminal penalty otherwise available.
(10) Statute of limitations
No penalty may be imposed under this subsection after the
expiration of the 4-year period beginning on the date of the
occurrence of the violation for which the penalty is authorized
under this subsection.
(g) Other actions to remedy pattern of noncompliance
(1) Authority of Federal entities for lending regulation
A Federal entity for lending regulation may require a regulated
lending institution to take such remedial actions as are
necessary to ensure that the regulated lending institution
complies with the requirements of the national flood insurance
program if the Federal agency for lending regulation makes a
determination under paragraph (2) regarding the regulated lending
institution.
(2) Determination of violations
A determination under this paragraph shall be a finding that -
(A) the regulated lending institution has engaged in a
pattern and practice of noncompliance in violation of the
regulations issued pursuant to subsection (b), (d), or (e) of
this section or the notice requirements under section 1364 of
the National Flood Insurance Act of 1968 [42 U.S.C. 4104a]; and
(B) the regulated lending institution has not demonstrated
measurable improvement in compliance despite the assessment of
civil monetary penalties under subsection (f) of this section.
(h) Fee for determining location
Notwithstanding any other Federal or State law, any person who
makes a loan secured by improved real estate or a mobile home or
any servicer for such a loan may charge a reasonable fee for the
costs of determining whether the building or mobile home securing
the loan is located in an area having special flood hazards, but
only in accordance with the following requirements:
(1) Borrower fee
The borrower under such a loan may be charged the fee, but only
if the determination -
(A) is made pursuant to the making, increasing, extending, or
renewing of the loan that is initiated by the borrower;
(B) is made pursuant to a revision or updating under section
1360(f) )2(! [42 U.S.C. 4101(f)] of the floodplain areas and
flood-risk zones or publication of a notice or compendia under
subsection (h) or (i) of section 1360 )2(! [42 U.S.C. 4101(h),
(i)] that affects the area in which the improved real estate or
mobile home securing the loan is located or that, in the
determination of the Director, may reasonably be considered to
require a determination under this subsection; or
(C) results in the purchase of flood insurance coverage
pursuant to the requirement under subsection (e)(2) of this
section.
(2) Purchaser or transferee fee
The purchaser or transferee of such a loan may be charged the
fee in the case of sale or transfer of the loan.
-SOURCE-
(Pub. L. 93-234, title I, Sec. 102, Dec. 31, 1973, 87 Stat. 978;
Pub. L. 98-181, title IV, Sec. 451(e)(1), Nov. 30, 1983, 97 Stat.
1229; Pub. L. 103-325, title V, Secs. 522-526, 531, 582(c), Sept.
23, 1994, 108 Stat. 2257-2262, 2267, 2287.)
-REFTEXT-
REFERENCES IN TEXT
The National Flood Insurance Act of 1968, referred to in subsecs.
(a), (b), (d)(1), and (e)(1), and the Act, referred to in subsec.
(b), is title XIII of Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 572,
as amended, which is classified principally to this chapter (Sec.
4001 et seq.). For complete classification of this Act to the Code,
see Short Title note set out under section 4001 of this title and
Tables.
The Federal Financial Institutions Examination Council Act of
1974, referred to in subsec. (b)(1), probably means the Federal
Financial Institutions Examination Council Act of 1978, Pub. L.
95-630, title X, Nov. 10, 1978, 92 Stat. 3694, as amended, which is
classified principally to chapter 34 (Sec. 3301 et seq.) of Title
12, Banks and Banking. For complete classification of this Act to
the Code, see Short Title note set out under section 3301 of Title
12 and Tables.
Section 522(a) of Public Law 103-325, referred to in subsec.
(b)(4)(C), was in original "section 522(a) of such Act", which
generally amended subsec. (b) of this section.
This title, referred to in subsec. (e)(3)(B), (C), means title I
of Pub. L. 93-234, Dec. 31, 1973, 87 Stat. 977, which enacted this
section and section 4104 of this title and amended sections 4001,
4013 to 4016, 4026, 4054, 4056, and 4121 of this title.
-COD-
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of
1973, and not as part of National Flood Insurance Act of 1968 which
comprises this chapter.
-MISC1-
AMENDMENTS
1994 - Pub. L. 103-325, Sec. 531, substituted section catchline
for former section catchline.
Subsec. (a). Pub. L. 103-325, Sec. 582(c), struck out ", during
the anticipated economic or useful life of the project," before
"covered by flood insurance" and inserted at end "The requirement
of maintaining flood insurance shall apply during the life of the
property, regardless of transfer of ownership of such property."
Subsec. (b). Pub. L. 103-325, Sec. 522(a), amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: "Each
Federal instrumentality responsible for the supervision, approval,
regulation, or insuring of banks, savings and loan associations, or
similar institutions shall by regulation direct such institutions
not to make, increase, extend, or renew after the expiration of
sixty days following December 31, 1973, any loan secured by
improved real estate or a mobile home located or to be located in
an area that has been identified by the Director as an area having
special flood hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968, unless
the building or mobile home and any personal property securing such
loan is covered for the term of the loan by flood insurance in an
amount at least equal to the outstanding principal balance of the
loan or to the maximum limit of coverage made available with
respect to the particular type of property under the Act, whichever
is less."
Subsec. (c). Pub. L. 103-325, Sec. 522(b), inserted heading,
designated existing provisions as par. (1), inserted par. (1)
heading, and added par. (2).
Subsecs. (d) to (h). Pub. L. 103-325, Secs. 523-526, added
subsecs. (d) to (h).
1983 - Pub. L. 98-181 substituted "Director" for "Secretary"
wherever appearing.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by section 582(c) of Pub. L. 103-325 applicable to
disasters declared after Sept. 23, 1994, see section 5154a(e) of
this title.
-TRANS-
TRANSFER OF FUNCTIONS
For transfer of functions, personnel, assets, and liabilities of
the Federal Emergency Management Agency, including the functions of
the Director of the Federal Emergency Management Agency relating
thereto, to the Secretary of Homeland Security, and for treatment
of related references, see sections 313(1), 551(d), 552(d), and 557
of Title 6, Domestic Security, and the Department of Homeland
Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4104a, 4104d of this
title; title 12 section 4521.
-FOOTNOTE-
)1(! See References in Text note below.
)2(! So in original. Probably should be followed by "of the
National Flood Insurance Act of 1968".
-End-
-CITE-
42 USC Sec. 4013 01/19/04
-EXPCITE-
TITLE 42 - THE PUBLIC HEALTH AND WELFARE
CHAPTER 50 - NATIONAL FLOOD INSURANCE
SUBCHAPTER I - THE NATIONAL FLOOD INSURANCE PROGRAM
-HEAD-
Sec. 4013. Nature and limitation of insurance coverage
-STATUTE-
(a) Regulations respecting general terms and conditions of
insurability
The Director shall from time to time, after consultation with the
advisory committee authorized under section 4025 of this title,
appropriate representatives of the pool formed or otherwise created
under section 4051 of this title, and appropriate representatives
of the insurance authorities of the respective States, provide by
regulation for general terms and conditions of insurability which
shall be applicable to properties eligible for flood insurance
coverage under section 4012 of this title, including -
(1) the types, classes, and locations of any such properties
which shall be eligible for flood insurance;
(2) the nature and limits of loss or damage in any areas (or
subdivisions thereof) which may be covered by such insurance;
(3) the classification, limitation, and rejection of any risks
which may be advisable;
(4) appropriate minimum premiums;
(5) appropriate loss-deductibles; and
(6) any other terms and conditions relating to insurance
coverage or exclusion which may be necessary to carry out the
purposes of this chapter.
(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
4012 of this title -
(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 4014(a)(1) of this
title, 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.
(c) Effective date of policies
(1) Waiting period
Except as provided in paragraph (2), coverage under a new
contract for flood insurance coverage under this chapter entered
into after September 23, 1994, and any modification to coverage
under an existing flood insurance contract made after September
23, 1994, shall become effective upon the expiration of the
30-day period beginning on the date that all obligations for such
coverage (including completion of the application and payment of
any initial premiums owed) are satisfactorily completed.
(2) Exception
The provisions of paragraph (1) shall not apply to -
(A) the initial purchase of flood insurance coverage under
this chapter when the purchase of insurance is in connection
with the making, increasing, extension, or renewal of a loan;
or
(B) the initial purchase of flood insurance coverage pursuant
to a revision or updating of floodplain areas or flood-risk
zones under section 4101(f) of this title, if such purchase
occurs during the 1-year period beginning upon publication of
notice of the revision or updating under section 4101(h) of
this title.
-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1306, Aug. 1, 1968, 82 Stat. 575;
Pub. L. 92-213, Sec. 2(c)(2), Dec. 22, 1971, 85 Stat. 775; Pub. L.
93-234, title I, Sec. 101, Dec. 31, 1973, 87 Stat. 977; Pub. L.
95-128, title VII, Sec. 704(a), Oct. 12, 1977, 91 Stat. 1145; Pub.L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; (continued)