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(continued)
Pub. L. 100-242, title V, Sec. 544(a), Feb. 5, 1988, 101 Stat.
1940; Pub. L. 100-628, title X, Sec. 1086(a), Nov. 7, 1988, 102
Stat. 3278; Pub. L. 100-707, title I, Sec. 109(o), Nov. 23, 1988,
102 Stat. 4709; Pub. L. 101-137, Sec. 1(c), Nov. 3, 1989, 103 Stat.
824; Pub. L. 101-508, title II, Sec. 2302(d), Nov. 5, 1990, 104
Stat. 1388-23; Pub. L. 103-325, title V, Secs. 552(a), 573, 579(a),
Sept. 23, 1994, 108 Stat. 2269, 2278, 2284.)


-MISC1-
AMENDMENTS
1994 - Subsec. (b)(2). Pub. L. 103-325, Sec. 573(a)(1),
substituted "a total amount (including such limits specified in
paragraph (1)(A)(i)) of $250,000" for "an amount of $150,000 under
the provisions of this clause".
Subsec. (b)(3). Pub. L. 103-325, Sec. 573(a)(2), substituted "a
total amount (including such limits specified in paragraph
(1)(A)(ii)) of $100,000" for "an amount of $50,000 under the
provisions of this clause".
Subsec. (b)(4). Pub. L. 103-325, Sec. 573(a)(3), added par. (4)
and struck out former par. (4) which read as follows: "in the case
of business property owned, leased, or operated by small business
concerns 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
subparagraph (B) of paragraph (1) shall be made available to every
such owner, lessee, or operator in respect to any single structure,
including any contents thereof, related to premises of small
business occupants (as that term is defined by the Director), up to
an amount equal to (i) $250,000 plus (ii) $200,000 multiplied by
the number of such occupants which coverage shall be allocated
among such occupants (or among the occupant or occupants and the
owner) in accordance with the regulations prescribed by the
Director pursuant to such subparagraph (B), except that the
aggregate liability for the structure itself may in no case exceed
$250,000;".
Subsec. (b)(5). Pub. L. 103-325, Sec. 573(b)(1), substituted a
period for "; and" at end.
Subsec. (b)(6). Pub. L. 103-325, Sec. 573(b)(2), struck out par.
(6) which read as follows: "the flood insurance purchase
requirements of section 4012a of this title do not apply to the
additional flood insurance limits made available in excess of twice
the limits made available under paragraph (1)."
Subsec. (c). Pub. L. 103-325, Sec. 579(a), added subsec. (c).
Pub. L. 103-325, Sec. 552(a), struck out subsec. (c) which
related to schedule for payment of flood insurance for structures
on land subject to imminent collapse or subsidence.
1990 - Subsec. (c)(7). Pub. L. 101-508 substituted "September 30,
1995" for "September 30, 1991".
1989 - Subsec. (c)(7). Pub. L. 101-137 substituted "September 30,
1991" for "September 30, 1989".
1988 - Subsec. (c). Pub. L. 100-242 added subsec. (c).
Subsec. (c)(1)(A). Pub. L. 100-628 substituted "following" for
"Following" in cls. (i) and (ii).
Subsec. (c)(5). Pub. L. 100-707 substituted "Disaster Relief and
Emergency Assistance Act" for "Disaster Relief Act of 1974".
1983 - Subsecs. (a), (b)(1)(B), (4). Pub. L. 98-181 substituted
"Director" for "Secretary" wherever appearing.
1977 - Subsec. (b)(2). Pub. L. 95-128 added par. (2) and
redesignated former par. (2) as (5).
Subsec. (b)(3), (4). Pub. L. 95-128 added pars. (3) and (4).
Subsec. (b)(5). Pub. L. 95-128 redesignated former par. (2) as
(5), struck out "(or allocated to any person under subparagraph (B)
of such paragraph)" after "paragraph (1)", and inserted "under
paragraph (1)(C), (2), (3), or (4), as applicable" after "(or
allocated)".
Subsec. (b)(6). Pub. L. 95-128 added par. (6).
1973 - Subsec. (b)(1)(A). Pub. L. 93-234, Sec. 101(a), in
increasing limits of coverage, struck out following introductory
text "residential properties" the clause "which are designed for
the occupancy of from one to four families"; substituted provisions
in cl. (i) "$35,000 aggregate liability for any single-family
dwelling, and $100,000 for any residential structure containing
more than one dwelling unit" for "$17,500 aggregate liability for
any dwelling unit, and $30,000 for any single dwelling structure
containing more than one dwelling unit"; increased cl. (ii) limits
to $10,000 from $5,000 and added cl. (iii).
Subsec. (b)(1)(B). Pub. L. 93-234, Sec. 101(b), substituted
"$100,000" for "$30,000" in cl. (i), for "$5,000" in cl. (ii), and
for "$30,000" in exception provision.
Subsec. (b)(1)(C). Pub. L. 93-234, Sec. 101(c), increased cl. (i)
limits to $100,000 from $30,000 and substituted cl. (ii) "$100,000
aggregate liability per unit for any contents related to such unit"
for "$5,000 aggregate liability per dwelling unit for any contents
related to such unit in the case of residential properties, or per
occupant (as that term is defined by the Secretary) for any
contents related to the premises occupied in the case of any other
properties".
1971 - Subsec. (b)(1)(C). Pub. L. 92-213 inserted "church
properties, and" before "any other properties which may become".

EFFECTIVE DATE OF 1988 AMENDMENT
Section 544(b) of Pub. L. 100-242 provided that: "The amendment
made by this section [amending this section] shall become effective
on the date of the enactment of this Act [Feb. 5, 1988]."

SAVINGS PROVISION
Section 552(c) of Pub. L. 103-325 provided that: "Notwithstanding
subsection (a) [amending this section], the Director shall take any
action necessary to make payments under flood insurance contracts
pursuant to any commitments made before the expiration of the
period referred to in subsection (b) [set out below] pursuant to
the authority under section 1306(c) of the National Flood Insurance
Act of 1968 [subsec. (c) of this section] or subsection (b)."


-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-
TRANSITION PHASE
Section 552(b) of Pub. L. 103-325 provided that: "Notwithstanding
subsection (a) [amending this section], during the 1-year period
beginning on the date of enactment of this Act [Sept. 23, 1994],
the Director of the Federal Emergency Management Agency may pay
amounts under flood insurance contracts for demolition or
relocation of structures as provided in section 1306(c) of the
National Flood Insurance Act of 1968 [subsec. (c) of this section]
(as in effect immediately before the enactment of this Act)."

-End-



-CITE-
42 USC Sec. 4014 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. 4014. Estimates of premium rates

-STATUTE-
(a) Studies and investigations
The Director is authorized to undertake and carry out such
studies and investigations and receive or exchange such information
as may be necessary to estimate, and shall from time to time
estimate, on an area, subdivision, or other appropriate basis -
(1) the risk premium rates for flood insurance which -
(A) based on consideration of the risk involved and accepted
actuarial principles, and
(B) including -
(i) the applicable operating costs and allowances set forth
in the schedules prescribed under section 4018 of this title
and reflected in such rates,
(ii) any administrative expenses (or portion of such
expenses) of carrying out the flood insurance program which,
in his discretion, should properly be reflected in such
rates, and
(iii) any remaining administrative expenses incurred in
carrying out the flood insurance and floodplain management
programs (including the costs of mapping activities under
section 4101 of this title) not included under clause (ii),
which shall be recovered by a fee charged to policyholders
and such fee shall not be subject to any agents' commissions,
company expense allowances, or State or local premium taxes,

would be required in order to make such insurance available on an
actuarial basis for any types and classes of properties for which
insurance coverage is available under section 4012(a) of this
title (or is recommended to the Congress under section 4012(b) of
this title);
(2) the rates, if less than the rates estimated under paragraph
(1), which would be reasonable, would encourage prospective
insureds to purchase flood insurance, and would be consistent
with the purposes of this chapter, and which, together with a fee
charged to policyholders that shall not be not subject to any
agents' commission, company expenses allowances, or State or
local premium taxes, shall include any administrative expenses
incurred in carrying out the flood insurance and floodplain
management programs (including the costs of mapping activities
under section 4101 of this title); and
(3) the extent, if any, to which federally assisted or other
flood protection measures initiated after August 1, 1968, affect
such rates.
(b) Utilization of services of other Departments and agencies
In carrying out subsection (a) of this section, the Director
shall, to the maximum extent feasible and on a reimbursement basis,
utilize the services of the Department of the Army, the Department
of the Interior, the Department of Agriculture, the Department of
Commerce, and the Tennessee Valley Authority, and, as appropriate,
other Federal departments or agencies, and for such purposes may
enter into agreements or other appropriate arrangements with any
persons.
(c) Priority to studies and investigations in States or areas
evidencing positive interest in securing insurance under program
The Director shall give priority to conducting studies and
investigations and making estimates under this section in those
States or areas (or subdivisions thereof) which he has determined
have evidenced a positive interest in securing flood insurance
coverage under the flood insurance program.
(d) Parishes of Louisiana; premium rates
Notwithstanding any other provision of law, any structure
existing on December 31, 1973, and located within Avoyelles,
Evangeline, Rapides, or Saint Landry Parish in the State of
Louisiana, which the Secretary determines is subject to additional
flood hazards as a result of the construction or operation of the
Atchafalaya Basin Levee System, shall be eligible for flood
insurance under this chapter (if and to the extent it is eligible
for such insurance under the other provisions of this chapter) at
premium rates that shall not exceed those which would be applicable
if such additional hazards did not exist.
(e) Eligibility of community making adequate progress on
construction of flood protection system for rates not exceeding
those applicable to completed flood protection system;
determination of adequate progress
Notwithstanding any other provision of law, any community that
has made adequate progress, acceptable to the Director, on the
construction of a flood protection system which will afford flood
protection for the one-hundred year frequency flood as determined
by the Director, shall be eligible for flood insurance under this
chapter (if and to the extent it is eligible for such insurance
under the other provisions of this chapter) at premium rates not
exceeding those which would be applicable under this section if
such flood protection system had been completed. The Director shall
find that adequate progress on the construction of a flood
protection system as required herein has been only if (1) 100
percent of the project cost of the system has been authorized, (2)
at least 60 percent of the project cost of the system has been
appropriated, (3) at least 50 percent of the project cost of the
system has been expended, and (4) the system is at least 50 percent
completed.
(f) Availability of flood insurance in communities restoring
disaccredited flood protection systems; criteria; rates
Notwithstanding any other provision of law, this subsection shall
only apply in a community which has been determined by the Director
of the Federal Emergency Management Agency to be in the process of
restoring flood protection afforded by a flood protection system
that had been previously accredited on a Flood Insurance Rate Map
as providing 100-year frequency flood protection but no longer does
so. Except as provided in this subsection, in such a community,
flood insurance shall be made available to those properties
impacted by the disaccreditation of the flood protection system at
premium rates that do not exceed those which would be applicable to
any property located in an area of special flood hazard, the
construction of which was started prior to the effective date of
the initial Flood Insurance Rate Map published by the Director for
the community in which such property is located. A revised Flood
Insurance Rate Map shall be prepared for the community to delineate
as Zone AR the areas of special flood hazard that result from the
disaccreditation of the flood protection system. A community will
be considered to be in the process of restoration if -
(1) the flood protection system has been deemed restorable by a
Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is still provided to
the community by the disaccredited system; and
(3) restoration of the flood protection system is scheduled to
occur within a designated time period and in accordance with a
progress plan negotiated between the community and the Federal
Emergency Management Agency.

Communities that the Director of the Federal Emergency Management
Agency determines to meet the criteria set forth in paragraphs (1)
and (2) as of January 1, 1992, shall not be subject to revised
Flood Insurance Rate Maps that contravene the intent of this
subsection. Such communities shall remain eligible for C zone rates
for properties located in zone AR for any policy written prior to
promulgation of final regulations for this section. Floodplain
management criteria for such communities shall not require the
elevation of improvements to existing structures and shall not
exceed 3 feet above existing grade for new construction, provided
the base flood elevation based on the disaccredited flood control
system does not exceed five feet above existing grade, or the
remaining new construction in such communities is limited to infill
sites, rehabilitation of existing structures, or redevelopment of
previously developed areas.

The Director of the Federal Emergency Management Agency shall
develop and promulgate regulations to implement this subsection,
including minimum floodplain management criteria, within 24 months
after October 28, 1992.

-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1307, Aug. 1, 1968, 82 Stat. 576;
Pub. L. 93-234, title I, Sec. 109, Dec. 31, 1973, 87 Stat. 980;
Pub. L. 93-383, title VIII, Sec. 816(b), Aug. 22, 1974, 88 Stat.
739; Pub. L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97
Stat. 1229; Pub. L. 101-508, title II, Sec. 2302(e)(1), Nov. 5,
1990, 104 Stat. 1388-24; Pub. L. 102-550, title IX, Sec. 928, Oct.
28, 1992, 106 Stat. 3886.)


-MISC1-
AMENDMENTS
1992 - Subsec. (f). Pub. L. 102-550 added subsec. (f).
1990 - Subsec. (a)(1)(B)(iii). Pub. L. 101-508, Sec.
2302(e)(1)(A)-(C), added cl. (iii).
Subsec. (a)(2). Pub. L. 101-508, Sec. 2302(e)(1)(D), inserted
before semicolon ", and which, together with a fee charged to
policyholders that shall not be not subject to any agents'
commission, company expenses allowances, or State or local premium
taxes, shall include any administrative expenses incurred in
carrying out the flood insurance and floodplain management programs
(including the costs of mapping activities under section 4101 of
this title)".
1983 - Subsecs. (a) to (c), (e). Pub. L. 98-181 substituted
"Director" for "Secretary" wherever appearing.
1974 - Subsec. (e). Pub. L. 93-383 added subsec. (e).
1973 - Subsec. (d). Pub. L. 93-234 added subsec. (d).


-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-
FEES
Pub. L. 108-7, div. K, title III, Feb. 20, 2003, 117 Stat. 517,
provided in part: "That beginning in fiscal year 2003 and
thereafter, fees authorized in 42 U.S.C. 4014(a)(1)(B)(iii) shall
be collected only if provided in advance in appropriations acts."

STUDY OF ECONOMIC EFFECTS OF CHARGING ACTUARIALLY BASED PREMIUM
RATES FOR PRE-FIRM STRUCTURES
Pub. L. 103-325, title V, Sec. 578, Sept. 23, 1994, 108 Stat.
2284, provided that:
"(a) Study. - The Director of the Federal Emergency Management
Agency (in this section referred to as the 'Director') shall
conduct a study of the economic effects that would result from
increasing premium rates for flood insurance coverage made
available under the national flood insurance program for pre-FIRM
structures to the full actuarial risk based premium rate determined
under section 1307(a)(1) of the National Flood Insurance Act of
1968 [42 U.S.C. 4014(a)(1)] for the area in which the property is
located. In conducting the study, the Director shall -
"(1) determine each area that would be subject to such
increased premium rates; and
"(2) for each such area, determine -
"(A) the amount by which premium rates would be increased;
"(B) the number and types of properties affected and the
number and types of properties covered by flood insurance under
this title [probably means title XIII of Pub. L. 90-448 which
enacted this chapter see Short Title note set out under section
4001 of this title and Tables] likely to cancel such insurance
if the rate increases were made;
"(C) the effects that the increased premium rates would have
on land values and property taxes; and
"(D) any other effects that the increased premium rates would
have on the economy and homeowners.
"(b) Definition of Pre-FIRM Structure. - For purposes of
subsection (a), the term 'pre-FIRM structure' means a structure
that was not constructed or substantially improved after the later
of -
"(1) December 31, 1974; or
"(2) the effective date of the initial rate map published by
the Director under section 1360(a)(2) of the National Flood
Insurance Act of 1968 [42 U.S.C. 4101(a)(2)] for the area in
which such structure is located.
"(c) Report. - The Director shall submit a report to the Congress
describing and explaining the findings of the study conducted under
this section. The report shall be submitted not later than 12
months after the date of enactment of this Act [Sept. 23, 1994]."

SEA LEVEL RISE STUDY
Pub. L. 101-137, Sec. 5, Nov. 3, 1989, 103 Stat. 825, directed
Director of Federal Emergency Management Agency to conduct a study
to determine the impact of relative sea level rise on the flood
insurance rate maps, such study also to project the economic losses
associated with estimated sea level rise and aggregate such data
for the United States as a whole and by region, with Director to
report results of study to Congress not later than one year after
Nov. 3, 1989.

-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4012, 4013, 4015, 4022,
4054, 4056 of this title.

-End-



-CITE-
42 USC Sec. 4015 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. 4015. Chargeable premium rates

-STATUTE-
(a) Establishment; terms and conditions
On the basis of estimates made under section 4014 of this title,
and such other information as may be necessary, 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, prescribe by
regulation -
(1) chargeable premium rates for any types and classes of
properties for which insurance coverage shall be available under
section 4012 of this title (at less than the estimated risk
premium rates under section 4014(a)(1) of this title, where
necessary), and
(2) the terms and conditions under which, and the areas
(including subdivisions thereof) within which, such rates shall
apply.
(b) Considerations for rates
Such rates shall, insofar as practicable, be -
(1) based on a consideration of the respective risks involved,
including differences in risks due to land use measures,
flood-proofing, flood forecasting, and similar measures.
(2) adequate, on the basis of accepted actuarial principles, to
provide reserves for anticipated losses, or, if less than such
amount, consistent with the objective of making flood insurance
available where necessary at reasonable rates so as to encourage
prospective insureds to purchase such insurance and with the
purposes of this chapter,
(3) adequate, together with the fee under paragraph (1)(B)(iii)
or (2) of section 4014(a) of this title, to provide for any
administrative expenses of the flood insurance and floodplain
management programs (including the costs of mapping activities
under section 4101 of this title), and
(4) stated so as to reflect the basis for such rates, including
the differences (if any) between the estimated risk premium rates
under section 4014(a)(1) of this title and the estimated rates
under section 4014(a)(2) of this title.
(c) Rate with respect to property the construction or substantial
improvement of which has been started after December 31, 1974, or
effective date of initial rate map published for area in which
property is located, whichever is later
Subject only to the limitation under subsection (e) of this
section, the chargeable rate with respect to any property, the
construction or substantial improvements of which the Director
determines has been started after December 31, 1974, or the
effective date of the initial rate map published by the Director
under paragraph (2) of section 4101 of this title for the area in
which such property is located, whichever is later, shall not be
less than the applicable estimated risk premium rate for such area
(or subdivision thereof) under section 4014(a)(1) of this title.
(d) Payment of certain sums to Director; deposits in Fund
With respect to any chargeable premium rate prescribed under this
section, a sum equal to the portion of the rate that covers any
administrative expenses of carrying out the flood insurance and
floodplain management programs which have been estimated under
paragraphs (1)(B)(ii) and (1)(B)(iii) of section 4014(a) of this
title or paragraph (2) of such section (including the fees under
such paragraphs), shall be paid to the Director. The Director shall
deposit the sum in the National Flood Insurance Fund established
under section 4017 of this title.
(e) Annual limitation on premium increases
Notwithstanding any other provision of this chapter, the
chargeable risk premium rates for flood insurance under this
chapter for any properties within any single risk classification
may not be increased by an amount that would result in the average
of such rate increases for properties within the risk
classification during any 12-month period exceeding 10 percent of
the average of the risk premium rates for properties within the
risk classification upon the commencement of such 12-month period.

-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1308, Aug. 1, 1968, 82 Stat. 576;
Pub. L. 93-234, title I, Sec. 103, Dec. 31, 1973, 87 Stat. 978;
Pub. L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat.
1229; Pub. L. 101-508, title II, Sec. 2302(e)(2), Nov. 5, 1990, 104
Stat. 1388-24; Pub. L. 103-325, title V, Sec. 572(a), Sept. 23,
1994, 108 Stat. 2277.)


-MISC1-
AMENDMENTS
1994 - Subsec. (c). Pub. L. 103-325, Sec. 572(a)(1), substituted
"Subject only to the limitation under subsection (e) of this
section" for "Notwithstanding any other provision of this chapter".
Subsec. (e). Pub. L. 103-325, Sec. 572(a)(2), added subsec. (e).
1990 - Subsec. (b)(3), (4). Pub. L. 101-508, Sec. 2302(e)(2)(A),
added par. (3) and redesignated former par. (3) as (4).
Subsec. (d). Pub. L. 101-508, Sec. 2302(e)(2)(B), added subsec.
(d) and struck out former subsec. (d) which read as follows: "In
the event any chargeable premium rate prescribed under this section
-
"(1) is a rate which is not less than the applicable estimated
risk premium rate under section 4014(a)(1) of this title, and
"(2) includes any amount for administrative expenses of
carrying out the flood insurance program which have been
estimated under clause (ii) of section 4014(a)(1)(B) of this
title,
a sum equal to such amount shall be paid to the Director, and he
shall deposit such sum in the National Flood Insurance Fund
established under section 4017 of this title."
1983 - Subsecs. (a), (c), (d). Pub. L. 98-181 substituted
"Director" for "Secretary" wherever appearing.
1973 - Subsec. (c). Pub. L. 93-234 substituted "started after
December 31, 1974, or the effective date of the initial rate map
published by the Secretary under paragraph (2) of section 4101 of
this title for the area in which such property is located,
whichever is later" for "started after the identification of the
area in which such property is located has been published under
paragraph (1) of section 4101 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.


-MISC2-
LIMITATION ON PREMIUMS
Section 2302(e)(5) of Pub. L. 101-508 provided that,
notwithstanding section 541(d) of Pub. L. 100-242, formerly set out
below, premium rates charged for flood insurance under any program
established pursuant to this chapter could be increased by more
than 10 percent during fiscal year 1991, with certain exceptions.
Pub. L. 100-242, title V, Sec. 541(d), Feb. 5, 1988, 101 Stat.
1939, as amended by Pub. L. 101-137, Sec. 1(d), Nov. 3, 1989, 103
Stat. 824; Pub. L. 101-508, title II, Sec. 2302(c), Nov. 5, 1990,
104 Stat. 1388-23, limited increases in premium rates charged for
flood insurance under programs established pursuant to this chapter
during period beginning Feb. 5, 1988, and ending Sept. 30, 1995, to
prorated annual rate of 10 percent, prior to repeal by Pub. L.
103-325, title V, Sec. 572(b), Sept. 23, 1994, 108 Stat. 2278.
Section 451(g)(1) of Pub. L. 98-181 provided that premium rates
charged for flood insurance under any program established pursuant
to this chapter could not be increased during the period beginning
Nov. 30, 1983, and ending Sept. 30, 1984.

TERMINATION OF ADVISORY COMMITTEES
Advisory committees in existence on Jan. 5, 1973, to terminate
not later than the expiration of the 2-year period following Jan.
5, 1973, unless, in the case of a committee established by the
President or an officer of the Federal Government, such committee
is renewed by appropriate action prior to the expiration of such
2-year period, or in the case of a committee established by the
Congress, its duration is otherwise provided by law. Advisory
committees established after Jan. 5, 1973, to terminate not later
than the expiration of the 2-year period beginning on the date of
their establishment, unless, in the case of a committee established
by the President or an officer of the Federal Government, such
committee is renewed by appropriate action prior to the expiration
of such 2-year period, or in the case of a committee established by
the Congress, its duration is otherwise provided by law. See
section 14 of Pub. L. 92-463, Oct. 6, 1972, 86 Stat. 776, set out
in the Appendix to Title 5, Government Organization and Employees.

-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 4013, 4017, 4020, 4022,
4054 of this title.

-End-



-CITE-
42 USC Sec. 4016 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. 4016. Financing provisions; issuance of notes or other
obligations; limitation; report to Congressional committees;
deposits in Fund

-STATUTE-
(a) All authority which was vested in the Director by virtue of
section 2414(e) of this title (pertaining to the issue of notes or
other obligations to the Secretary of the Treasury), as amended by
subsections (a) and (b) of section 1303 of this Act, shall be
available to the Director for the purpose of carrying out the flood
insurance program under this chapter; except that the total amount
of notes and obligations which may be issued by the Director
pursuant to such authority (1) without the approval of the
President, may not exceed $500,000,000, and (2) with the approval
of the President, may not exceed $1,500,000,000 through the date
specified in section 4026 of this title, and $1,000,000,000
thereafter. The Director shall report to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate at
any time when he requests the approval of the President in
accordance with the preceding sentence.
(b) Any funds borrowed by the Director under this authority
shall, from time to time, be deposited in the National Flood
Insurance Fund established under section 4017 of this title.

-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1309, Aug. 1, 1968, 82 Stat. 577;
Pub. L. 89-174, Sec. 5(a), Sept. 9, 1965, 79 Stat. 669; Pub. L.
93-234, title I, Sec. 104, Dec. 31, 1973, 87 Stat. 979; Pub. L.
98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229;
Pub. L. 98-479, title II, Sec. 204(g), Oct. 17, 1984, 98 Stat.
2233; Pub. L. 104-208, div. A, title V, Sept. 30, 1996, 110 Stat.
3009-521; Pub. L. 105-65, title III, Oct. 27, 1997, 111 Stat. 1377;
Pub. L. 105-276, title III, Oct. 21, 1998, 112 Stat. 2502; Pub. L.
106-74, title III, Oct. 20, 1999, 113 Stat. 1088; Pub. L. 106-377,
Sec. 1(a)(1) [title III], Oct. 27, 2000, 114 Stat. 1441, 1441A-47;
Pub. L. 107-73, title III, Nov. 26, 2001, 115 Stat. 689; Pub. L.
108-3, Sec. 2(a)(1), Jan. 13, 2003, 117 Stat. 7; Pub. L. 108-171,
Sec. 2(a)(2), Dec. 6, 2003, 117 Stat. 2064.)

-REFTEXT-
REFERENCES IN TEXT
Section 1303 of this Act, referred to in subsec. (a), means
section 1303 of Pub. L. 90-448, which amended section 2414(e) of
this title.


-MISC1-
AMENDMENTS
2003 - Subsec. (a)(2). Pub. L. 108-171 substituted "the date
specified in section 4026 of this title" for "December 31, 2003".
Pub. L. 108-3 substituted "December 31, 2003" for "December 31,
2002".
2001 - Subsec. (a)(2). Pub. L. 107-73 substituted "2002" for
"2001".
2000 - Subsec. (a)(2). Pub. L. 106-377 substituted "December 31,
2001" for "September 30, 2000".
1999 - Subsec. (a)(2). Pub. L. 106-74, which directed
substitution of "2000" for "1999" in section "1309(a)(2) of the
National Flood Insurance Act", was executed to subsec. (a)(2) of
this section, which is section 1309 of the National Flood Insurance
Act of 1968, to reflect the probable intent of Congress.
1998 - Subsec. (a)(2). Pub. L. 105-276, which directed
substitution of "1999" for "1998" in section "1309(a)(2) of the
National Flood Insurance Act", was executed by making the
substitution in subsec. (a)(2) of this section, which is section
1309 of the National Flood Insurance Act of 1968, to reflect the
probable intent of Congress.
1997 - Subsec. (a)(2). Pub. L. 105-65, which directed
substitution of "1998" for "1997" in section "1309(a)(2) of the
National Flood Insurance Act", was executed by making the
substitution in subsec. (a)(2) of this section, which is section
1309 of the National Flood Insurance Act of 1968, to reflect the
probable intent of Congress.
1996 - Subsec. (a)(2). Pub. L. 104-208 substituted
"$1,500,000,000 through September 30, 1997, and $1,000,000,000
thereafter" for "$1,000,000,000".
1984 - Subsec. (a). Pub. L. 98-479 substituted ", Finance and
Urban Affairs" for "and Currency" and inserted a comma after
"Housing" in last sentence.
1983 - Pub. L. 98-181 substituted "Director" for "Secretary"
wherever appearing.
1973 - Subsec. (a). Pub. L. 93-234 substituted provisions
respecting issuance of notes and obligation for $500,000,000
without approval of President and for $1,000,000,000 with approval
of President, for former provision prescribing a $250,000,000
limitation, struck out provision rescinding authority of Secretary
to issue notes and obligations under section 2414(e) of this title,
and provided for report to Congressional Committees when the
approval of the President is requested.

-CHANGE-
CHANGE OF NAME
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of
Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
The Congress. Committee on Banking and Financial Services of House
of Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally
transferred from Committee on Energy and Commerce of House of
Representatives by House Resolution No. 5, One Hundred Seventh
Congress, Jan. 3, 2001.


-MISC2-
EFFECTIVE DATE OF 2003 AMENDMENTS
Pub. L. 108-171, Sec. 2(b), Dec. 6, 2003, 117 Stat. 2064,
provided that: "The amendments made by this section [amending this
section and sections 4026, 4056, and 4127 of this title] shall be
considered to have taken effect on December 31, 2003."
Pub. L. 108-3, Sec. 2(b), Jan. 13, 2003, 117 Stat. 7, provided
that: "The amendments made by this section [amending this section
and sections 4026, 4056, and 4127 of this title] shall be
considered to have taken effect on December 31, 2002."


-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.
Functions of Housing and Home Finance Agency and head thereof
transferred to Secretary of Housing and Urban Development by Pub.
L. 89-174, Sec. 5(a), Sept. 9, 1965, 79 Stat. 669, which is
classified to section 3534(a) of this title. Section 9(c) of such
act, set out as a note under section 3531 of this title, provides
that references to Housing and Home Finance Agency or to any agency
or officer therein are to be deemed to mean Secretary of Housing
and Urban Development and that Housing and Home Finance Agency has
lapsed.

-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 4017 of this title.

-End-



-CITE-
42 USC Sec. 4017 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. 4017. National Flood Insurance Fund

-STATUTE-
(a) Establishment; availability
To carry out the flood insurance program authorized by this
chapter, the Director shall establish in the Treasury of the United
States a National Flood Insurance Fund (hereinafter referred to as
the "fund") which shall be an account separate from any other
accounts or funds available to the Director and shall be available
as described in subsection (f) of this section, without fiscal year
limitation (except as otherwise provided in this section) -
(1) for making such payments as may, from time to time, be
required under section 4054 of this title;
(2) to pay reinsurance claims under the excess loss reinsurance
coverage provided under section 4055 of this title;
(3) to repay to the Secretary of the Treasury such sums as may
be borrowed from him (together with interest) in accordance with
the authority provided in section 4016 of this title; and
(4) to the extent approved in appropriations Acts, to pay any
administrative expenses of the flood insurance and floodplain
management programs (including the costs of mapping activities
under section 4101 of this title);
(5) for the purposes specified in subsection (d) of this
section under the conditions provided therein;
(6) for carrying out the program under section 4022(b) of this
title;
(7) for transfers to the National Flood Mitigation Fund, but
only to the extent provided in section 4104d(b)(1) of this title;
and
(8) for costs of preparing the report under section 577 of the
Riegle Community Development and Regulatory Improvement Act of
1994, except that the fund shall be available for the purpose
under this paragraph in an amount not to exceed an aggregate of
$5,000,000 over the 2-year period beginning on September 23,
1994.
(b) Credits to Fund
The fund shall be credited with -
(1) such funds borrowed in accordance with the authority
provided in section 4016 of this title as may from time to time
be deposited in the fund;
(2) premiums, fees, or other charges which may be paid or
collected in connection with the excess loss reinsurance coverage
provided under section 4055 of this title;
(3) such amounts as may be advanced to the fund from
appropriations in order to maintain the fund in an operative
condition adequate to meet its liabilities;
(4) interest which may be earned on investments of the fund
pursuant to subsection (c) of this section;
(5) such sums as are required to be paid to the Director under
section 4015(d) of this title; and
(6) receipts from any other operations under this chapter
(including premiums under the conditions specified in subsection
(d) of this section, and salvage proceeds, if any, resulting from
reinsurance coverage).
(c) Investment of moneys in obligations issued or guaranteed by
United States
If, after -
(1) all outstanding obligations of the fund have been
liquidated, and
(2) any outstanding amounts which may have been advanced to the
fund from appropriations authorized under section 4127(a)(2)(B)
of this title have been credited to the appropriation from which
advanced, with interest accrued at the rate prescribed under
section 2414(e) of this title, as in effect immediately prior to
August 1, 1968,

the Director determines that the moneys of the fund are in excess
of current needs, he may request the investment of such amounts as
he deems advisable by the Secretary of the Treasury in obligations
issued or guaranteed by the United States.
(d) Availability of Fund if operation of program is carried out
through facilities of Federal Government
In the event the Director makes a determination in accordance
with the provisions of section 4071 of this title that operation of
the flood insurance program, in whole or in part, should be carried
out through the facilities of the Federal Government, the fund
shall be available for all purposes incident thereto, including -
(1) cost incurred in the adjustment and payment of any claims
for losses, and
(2) payment of applicable operating costs set forth in the
schedules prescribed under section 4018 of this title,

for so long as the program is so carried out, and in such event any
premiums paid shall be deposited by the Director to the credit of
the fund.
(e) Annual budget
An annual business-type budget for the fund shall be prepared,
transmitted to the Congress, considered, and enacted in the manner
prescribed by sections 9103 and 9104 of title 31 for wholly-owned
Government corporations.
(f) Availability of funds dependent on future appropriations acts
The fund shall be available, with respect to any fiscal year
beginning on or after October 1, 1981, only to the extent approved
in appropriation Acts; except that the fund shall be available for
the purpose described in subsection (d)(1) of this section without
such approval.

-SOURCE-
(Pub. L. 90-448, title XIII, Sec. 1310, Aug. 1, 1968, 82 Stat. 577;
Pub. L. 97-35, title III, Sec. 341(c), Aug. 13, 1981, 95 Stat. 419;
Pub. L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat.
1229; Pub. L. 98-479, title II, Sec. 203(j)(1), Oct. 17, 1984, 98
Stat. 2231; Pub. L. 100-242, title V, Sec. 545(d), Feb. 5, 1988,
101 Stat. 1942; Pub. L. 101-508, title II, Sec. 2302(e)(3), Nov. 5,
1990, 104 Stat. 1388-24; Pub. L. 103-325, title V, Secs. 542,
554(b), 577(h), Sept. 23, 1994, 108 Stat. 2269, 2274, 2283.)

-REFTEXT-
REFERENCES IN TEXT
For provisions relating to the report under section 577 of the
Riegle Community Development and Regulatory Improvement Act of
1994, referred to in subsec. (a)(8), see section 577(a)-(g) of Pub.
L. 103-325, set out as an Evaluation of Erosion Hazards note under
section 4001 of this title.


-MISC1-
AMENDMENTS
1994 - Subsec. (a). Pub. L. 103-325, Secs. 554(b)(1), 577(h)(1),
in introductory provisions, substituted "shall" for "is authorized
to" after "Director", inserted "an account separate from any other
accounts or funds available to the Director and shall be" after
"which shall be", and inserted "(except as otherwise provided in
this section)" after "without fiscal year limitation".
Subsec. (a)(6) to (8). Pub. L. 103-325, Secs. 542, 554(b)(2),
577(h)(2), added pars. (6) to (8), respectively.
1990 - Subsec. (a)(4). Pub. L. 101-508 amended par. (4)
generally. Prior to amendment, par. (4) read as follows: "to pay
such administrative expenses (or portion of such expenses) of
carrying out the flood insurance program as he may deem necessary;
and".
1988 - Subsec. (e). Pub. L. 100-242 substituted "title 31, United
States Code," for "title 31, United States Code", which for
purposes of codification was translated as "title 31", requiring no
change in text.
1984 - Subsec. (e). Pub. L. 98-479 substituted "sections 9103 and
9104 of title 31" for "law (sections 102, 103, and 104 of the
Government Corporations Control Act (31 U.S.C. 847-849))".
1983 - Subsecs. (a), (b)(5), (c), (d). Pub. L. 98-181 substituted
"Director" for "Secretary" wherever appearing.
1981 - Subsec. (a). Pub. L. 97-35, Sec. 341(c)(1), inserted
reference to subsec. (f) of this section.
Subsec. (f). Pub. L. 97-35, Sec. 341(c)(2), added subsec. (f).

EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section
371 of Pub. L. 97-35, set out as an Effective Date note under
section 3701 of Title 12, Banks and Banking.


-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 4015, 4016, 4071, 4101,
4126, 4127 of this title.

-End-



-CITE-
42 USC Sec. 4018 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. 4018. Operating costs and allowances; definitions

-STATUTE-
(a) The Director shall from time to time negotiate with
appropriate representatives of the insurance industry for the
purpose of establishing -
(1) a current schedule of operating costs applicable both to
risk-sharing insurance companies and other insurers and to (continued)