FLOOD DISASTER PROTECTION ACT OF 1973 Public Law 93–234, as amended 87 Stat. 975, as amended FLOOD DISASTER PROTECTION ACT OF 1973 234 113–89 Statute Compilation United States House of Representatives Office of the Legislative Counsel text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. GPO Statute Compilations USLM converter, version 20210527.1 2021-10-15 Flood Disaster Protection Act of 1973 1039 93 1973-12-31 FLOOD DISASTER PROTECTION ACT OF 1973 [Public Law 93–234; 87 Stat. 975; 42 U.S.C. 4002 et seq.] [As Amended Through P.L. 113–89, Enacted March 21, 2014] [Currency: This publication is a compilation of the text of Public Law 93–234. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/] [Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
That this Act may be cited as the “Flood Disaster Protection Act of 1973”. [42 U.S.C. 4001 note]
findings and declaration of purpose Sec. 2. [42 U.S.C. 4002] (a) The Congress finds that— (1) annual losses throughout the Nation from floods and mudslides are increasing at an alarming rate, largely as a result of the accelerating development of, and concentration of population in, areas of flood and mudslides hazards; (2) the availability of Federal loans, grants, guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location and construction of public and of private industrial, commercial, and residential facilities; (3) property acquired or constructed with grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance was extended; (4) Federal instrumentalities insure or otherwise provide financial protection to banking and credit institutions whose assets include a substantial number of mortgage loans and other indebtedness secured by property exposed to loss and damage from floods and mudslides; (5) the Nation cannot afford the tragic losses of life caused annually by flood occurrences, nor the increasing losses of property suffered by flood victims, most of whom are still inadequately compensated despite the provision of costly disaster relief benefits; and (6) it is in the public interest for persons already living in floodprone areas to have both an opportunity to purchase flood insurance and access to more adequate limits of coverage, so that they will be indemnified for their losses in the event of future flood disasters. (b) The purpose of this Act, therefore, is to— (1) substantially increase the limits of coverage authorized under the national flood insurance program; (2) provide for the expeditious identification of, and the dissemination of information concerning, flood-prone areas; (3) require States or local communities, as a condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plain ordinances with effective enforcement provisions consistent with Federal standards to reduce or avoid future flood losses; and (4) require the purchase of flood insurance by property owners who are being assisted by Federal programs or by federally supervised, regulated, or insured agencies or institutions in the acquisition or improvement of land or facilities located or to be located in identified areas having special flood hazards.
definitions Sec. 3. [42 U.S.C. 4003] (a) As used in this Act, unless the context otherwise requires, the term— (1) “community” means a State or a political subdivision thereof which has zoning and building code jurisdiction over a particular area having special flood hazards; (2) “Federal agency” means any department, agency, corporation, or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; (3) “financial assistance” means any form of loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance, other than general or special revenue sharing or formula grants made to States; (4) “financial assistance for acquisition or construction purposes” means any form of financial assistance which is intended in whole or in part for the acquisition, construction, reconstruction, repair, or improvement of any publicly or privately owned building or mobile home, and for any machinery, equipment fixtures, and furnishings contained or to be contained therein, and shall include the purchase or subsidization of mortgages or mortgage loans but shall exclude assistance pursuant to the Disaster Relief and Emergency Assistance Act1 (other than assistance under such Act in connection with a flood);1

Probably should refer instead to The Robert T. Stafford Disaster Relief and Emergency Assistance Act. See section 102(a) of the Disaster Relief and Emergency Assistance Amendments of 1988, Pub. L. 100–707.

 (5) “Federal entity for lending regulation” means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration, and with respect to a particular regulated lending institution means the entity primarily responsible for the supervision of the institution; (6) “Administrator” means the Administrator of the Federal Emergency Management Agency; (7) “Federal agency lender” means a Federal agency that makes direct loans secured by improved real estate or a mobile home, to the extent such agency acts in such capacity; (8) the term “improved real estate” means real estate upon which a building is located; (9) “lender” means a regulated lending institution or Federal agency lender; (10) “regulated lending institution” means any bank, savings and loan association, credit union, farm credit bank, Federal land bank association, production credit association, or similar institution subject to the supervision of a Federal entity for lending regulation; and (11) “servicer” means the person responsible for receiving any scheduled periodic payments from a borrower pursuant to the terms of a loan, including amounts for taxes, insurance premiums, and other charges with respect to the property securing the loan, and making the payments of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the loan. (b) The Administrator is authorized to define or redefine, by rules and regulations, any scientific or technical term used in this Act, insofar as such definition is not inconsistent with the purposes of this Act.
<num style="-uslm-dtd:enum" value="I">TITLE I—</num><heading style="-uslm-dtd:header">EXPANSION OF NATIONAL FLOOD INSURANCE PROGRAM </heading> <elided style="-uslm-dtd:omitted-text">* * * * * * *</elided> <section style="-uslm-dtd:section" identifier="/us/sComp/93/234/tI/s102" styleType="traditional"> <heading style="-uslm-dtd:header">flood insurance purchase and compliance requirements and escrow accounts </heading> <num style="-uslm-dtd:enum" value="102">Sec. 102. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s4012a">42 U.S.C. 4012a</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><content style="-uslm-dtd:text">After the expiration of sixty days following the date of enactment of this Act,<ref style="-uslm-dtd:footnote-ref" idref="IDA4EC472C5C334948877D6E09B0E1EC4F" class="footnoteRef">2</ref> 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 Administrator 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, 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: <i style="-uslm-dtd:italic">Provided,</i> 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.</content><footnote id="IDA4EC472C5C334948877D6E09B0E1EC4F" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">2</sup><p style="-uslm-dtd:para; margin-left:1em">The date of enactment was December 31, 1973.</p></footnote></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Requirement for Mortgage Loans.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Regulated lending institutions.—</heading><chapeau style="-uslm-dtd:text">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) shall by regulation direct regulated lending institutions—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/1/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">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 Administrator 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 the maximum limit of coverage made available under the Act with respect to the particular type of property, whichever is less; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/1/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">to accept private flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such subparagraph.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Federal agency lenders.—</heading><content style="-uslm-dtd:text">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 Administrator 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)(A). Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such sentence. 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)(A).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Government-sponsored enterprises for housing.—</heading><chapeau style="-uslm-dtd:text">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—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/3/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">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 Administrator as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/3/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">purchased by such entity,</content> </subparagraph><continuation style="-uslm-dtd:continuation-text" role="paragraph">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)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation will accept private flood insurance.</continuation> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/4" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Applicability.—</heading> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/4/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">Existing coverage.—</heading><content style="-uslm-dtd:text">Except as provided in subparagraph (B), paragraph (1) shall apply on the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994.<ref style="-uslm-dtd:footnote-ref" idref="ID20A8BD1D6A20425A9080B0BDFBE7DA68" class="footnoteRef">3</ref></content><footnote id="ID20A8BD1D6A20425A9080B0BDFBE7DA68" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">3</sup><p style="-uslm-dtd:para; margin-left:1em">September 23, 1994.</p></footnote> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/4/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">New coverage.—</heading><content style="-uslm-dtd:text">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 the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994.<ref style="-uslm-dtd:footnote-ref" idref="IDEAA1D0A219054214BB48AA3E2F7B4038" class="footnoteRef">4</ref> 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.</content><footnote id="IDEAA1D0A219054214BB48AA3E2F7B4038" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">4</sup><p style="-uslm-dtd:para; margin-left:1em">The date of enactment was September 23, 1994.</p></footnote> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/4/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><heading style="-uslm-dtd:header">Continued effect of regulations.—</heading><content style="-uslm-dtd:text">Notwithstanding any other provision of this subsection, the regulations to carry out paragraph (1), as in effect immediately before the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994<ref style="-uslm-dtd:dangling-footnote-ref" class="footnoteRef">4</ref>, shall continue to apply until the regulations issued to carry out paragraph (1) as amended by section 522(a) of such Act take effect.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/5" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><content style="-uslm-dtd:text">Nothing in this subsection shall be construed to supersede or limit the authority of a Federal entity for lending regulation, the Federal Housing Finance Agency, a Federal agency lender, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation to establish requirements relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the entity or agency will accept private flood insurance.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/6" styleType="OLC"> <num style="-uslm-dtd:enum" value="6">(6) </num><heading style="-uslm-dtd:header">Notice.—</heading> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/6/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">Each lender shall disclose to a borrower that is subject to this subsection that—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/6/A/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">flood insurance is available from private insurance companies that issue standard flood insurance policies on behalf of the national flood insurance program or directly from the national flood insurance program;</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/6/A/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">flood insurance that provides the same level of coverage as a standard flood insurance policy under the national flood insurance program may be available from a private insurance company that issues policies on behalf of the company; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/6/A/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">the borrower is encouraged to compare the flood insurance coverage, deductibles, exclusions, conditions and premiums associated with flood insurance policies issued on behalf of the national flood insurance program and policies issued on behalf of private insurance companies and to direct inquiries regarding the availability, cost, and comparisons of flood insurance coverage to an insurance agent.</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/6/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Rule of construction.—</heading><content style="-uslm-dtd:text">Nothing in this paragraph shall be construed as affecting or otherwise limiting the authority of a Federal entity for lending regulation to approve any disclosure made by a regulated lending institution for purposes of complying with subparagraph (A).</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/b/7" styleType="OLC"> <num style="-uslm-dtd:enum" value="7">(7) </num><heading style="-uslm-dtd:header">Private flood insurance defined.—</heading><chapeau style="-uslm-dtd:text">In this subsection, the term “<term style="-uslm-dtd:term">private flood insurance</term>” means an insurance policy that—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/7/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><chapeau style="-uslm-dtd:text">is issued by an insurance company that is—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/7/A/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">licensed, admitted, or otherwise approved to engage in the business of insurance in the State or jurisdiction in which the insured building is located, by the insurance regulator of that State or jurisdiction; or</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/7/A/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the State or jurisdiction where the property to be insured is located;</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/7/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">provides flood insurance coverage which is at least as broad as the coverage provided under a standard flood insurance policy under the national flood insurance program, including when considering deductibles, exclusions, and conditions offered by the insurer;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/7/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><chapeau style="-uslm-dtd:text">includes—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/7/C/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><chapeau style="-uslm-dtd:text">a requirement for the insurer to give 45 days' written notice of cancellation or non-renewal of flood insurance coverage to—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/b/7/C/i/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">the insured; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/b/7/C/i/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><content style="-uslm-dtd:text">the regulated lending institution or Federal agency lender;</content> </subclause> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/7/C/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">information about the availability of flood insurance coverage under the national flood insurance program;</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/7/C/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">a mortgage interest clause similar to the clause contained in a standard flood insurance policy under the national flood insurance program; and</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/b/7/C/iv" styleType="OLC"> <num style="-uslm-dtd:enum" value="iv">(iv) </num><content style="-uslm-dtd:text">a provision requiring an insured to file suit not later than 1 year after date of a written denial of all or part of a claim under the policy; and</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/b/7/D" styleType="OLC"> <num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">contains cancellation provisions that are as restrictive as the provisions contained in a standard flood insurance policy under the national flood insurance program.</content> </subparagraph> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/c" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Exceptions to Purchase Requirements.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/c/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">State-owned property.—</heading><content style="-uslm-dtd:text">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 Administrator. The Administrator shall publish and periodically revise the list of States to which this subsection applies.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/c/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Small loans.—</heading><chapeau style="-uslm-dtd:text">Notwithstanding any other provision of this section, subsections (a) and (b) shall not apply to any loan having—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/c/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">an original outstanding principal balance of $5,000 or less; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/c/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">a repayment term of 1 year or less.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/c/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Detached structures.—</heading><content style="-uslm-dtd:text">Notwithstanding any other provision of this section, flood insurance shall not be required, in the case of any residential property, for any structure that is a part of such property but is detached from the primary residential structure of such property and does not serve as a residence.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/d" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Escrow of Flood Insurance Payments.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/d/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Regulated lending institutions.—</heading> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/d/1/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">Federal entities responsible for lending regulations.—</heading><content style="-uslm-dtd:text">Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that all premiums and fees for flood insurance under the National Flood Insurance Act of 1968, for residential improved real estate or a mobile home, shall be paid to the regulated lending institution or servicer for any loan secured by the residential improved real estate or mobile home, with the same frequency as payments on the loan are made, for the duration of the loan. Except as provided in subparagraph (B), upon receipt of any premiums or fees, the regulated lending institution or servicer shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from the Administrator or the provider of the flood insurance that insurance premiums are due, the premiums deposited in the escrow account shall be paid to the provider of the flood insurance.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/d/1/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Limitation.—</heading><chapeau style="-uslm-dtd:text">Except as may be required under applicable State law, a Federal entity for lending regulation may not direct or require a regulated lending institution to deposit premiums or fees for flood insurance under the National Flood Insurance Act of 1968 in an escrow account on behalf of a borrower under subparagraph (A)—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/d/1/B/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><chapeau style="-uslm-dtd:text">if—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/i/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">the regulated lending institution has total assets of less than $1,000,000,000; and</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/i/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><chapeau style="-uslm-dtd:text">on or before the date of enactment of the Biggert-Waters Flood Insurance Reform Act of 2012, the regulated lending institution—</chapeau> <item style="-uslm-dtd:item" identifier="/us/sComp/93/234/tI/s102/d/1/B/i/II/aa" styleType="OLC"> <num style="-uslm-dtd:enum" value="aa">(aa) </num><content style="-uslm-dtd:text">in the case of a loan secured by residential improved real estate or a mobile home, was not required under Federal or State law to deposit taxes, insurance premiums, fees, or any other charges in an escrow account for the entire term of the loan; and</content> </item> <item style="-uslm-dtd:item" identifier="/us/sComp/93/234/tI/s102/d/1/B/i/II/bb" styleType="OLC"> <num style="-uslm-dtd:enum" value="bb">(bb) </num><content style="-uslm-dtd:text">did not have a policy of consistently and uniformly requiring the deposit of taxes, insurance premiums, fees, or any other charges in an escrow account for loans secured by residential improved real estate or a mobile home; or</content> </item> </subclause> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><chapeau style="-uslm-dtd:text">in the case of a loan that—</chapeau> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/I" styleType="OLC"> <num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">is in a junior or subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which flood insurance is being provided at the time of the origination of the loan;</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/II" styleType="OLC"> <num style="-uslm-dtd:enum" value="II">(II) </num><chapeau style="-uslm-dtd:text">is secured by residential improved real estate or a mobile home that is part of a condominium, cooperative, or other project development, if the residential improved real estate or mobile home is covered by a flood insurance policy that—</chapeau> <item style="-uslm-dtd:item" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/II/aa" styleType="OLC"> <num style="-uslm-dtd:enum" value="aa">(aa) </num><content style="-uslm-dtd:text">meets the requirements that the regulated lending institution is required to enforce under subsection (b)(1);</content> </item> <item style="-uslm-dtd:item" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/II/bb" styleType="OLC"> <num style="-uslm-dtd:enum" value="bb">(bb) </num><content style="-uslm-dtd:text">is provided by the condominium association, cooperative, homeowners association, or other applicable group; and</content> </item> <item style="-uslm-dtd:item" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/II/cc" styleType="OLC"> <num style="-uslm-dtd:enum" value="cc">(cc) </num><content style="-uslm-dtd:text">the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense;</content> </item> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/III" styleType="OLC"> <num style="-uslm-dtd:enum" value="III">(III) </num><content style="-uslm-dtd:text">is secured by residential improved real estate or a mobile home that is used as collateral for a business purpose;</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/IV" styleType="OLC"> <num style="-uslm-dtd:enum" value="IV">(IV) </num><content style="-uslm-dtd:text">is a home equity line of credit;</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/V" styleType="OLC"> <num style="-uslm-dtd:enum" value="V">(V) </num><content style="-uslm-dtd:text">is a nonperforming loan; or</content> </subclause> <subclause style="-uslm-dtd:subclause" identifier="/us/sComp/93/234/tI/s102/d/1/B/ii/VI" styleType="OLC"> <num style="-uslm-dtd:enum" value="VI">(VI) </num><content style="-uslm-dtd:text">has a term of not longer than 12 months.</content> </subclause> </clause> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/d/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Federal agency lenders.—</heading><content style="-uslm-dtd:text">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).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/d/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Applicability of respa.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/d/4" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Definition.—</heading><content style="-uslm-dtd:text">For purposes of this subsection, the term “<term style="-uslm-dtd:term">residential improved real estate</term>” means improved real estate for which the improvement is a residential building.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/d/5" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Applicability.—</heading><content style="-uslm-dtd:text">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 the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994.<ref style="-uslm-dtd:footnote-ref" idref="ID30F3581206F447F2B03EB4645D15D6A8" class="footnoteRef">5</ref></content><footnote id="ID30F3581206F447F2B03EB4645D15D6A8" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">5</sup><p style="-uslm-dtd:para; margin-left:1em">The date of enactment was September 23, 1994.</p></footnote> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/e" styleType="OLC"> <num style="-uslm-dtd:enum" value="e">(e) </num><heading style="-uslm-dtd:header">Placement of Flood Insurance by Lender.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/e/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Notification to borrower of lack of coverage.—</heading><content style="-uslm-dtd:text">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 Administrator (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, 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), 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), for the term of the loan.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/e/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Purchase of coverage on behalf of borrower.—</heading><content style="-uslm-dtd:text">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, including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide a sufficient coverage amount.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/e/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Termination of force-placed insurance.—</heading><chapeau style="-uslm-dtd:text">Within 30 days of receipt by the lender or servicer of a confirmation of a borrower's existing flood insurance coverage, the lender or servicer shall—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/e/3/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">terminate any insurance purchased by the lender or servicer under paragraph (2); and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/e/3/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">refund to the borrower all premiums paid by the borrower for any insurance purchased by the lender or servicer under paragraph (2) during any period during which the borrower's flood insurance coverage and the insurance coverage purchased by the lender or servicer were each in effect, and any related fees charged to the borrower with respect to the insurance purchased by the lender or servicer during such period.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/e/4" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Sufficiency of demonstration.—</heading><content style="-uslm-dtd:text">For purposes of confirming a borrower's existing flood insurance coverage, a lender or servicer for a loan shall accept from the borrower an insurance policy declarations page that includes the existing flood insurance policy number and the identity of, and contact information for, the insurance company or agent.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/e/5" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Review of determination regarding required purchase.—</heading> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/e/5/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The borrower and lender for a loan secured by improved real estate or a mobile home may jointly request the Administrator 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 Administrator receives the request, the Administrator 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 Administrator shall be final.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/e/5/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Effect of determination.—</heading><content style="-uslm-dtd:text">Any person to whom a borrower provides a letter issued by the Administrator 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 to require the purchase of flood insurance for such building or mobile home during the period determined by the Administratorwhich shall be specified in the letter and shall begin on the date on which such letter is provided.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/e/5/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><heading style="-uslm-dtd:header">Effect of failure to respond.—</heading><chapeau style="-uslm-dtd:text">If a request under subparagraph (A) is made in connection with the origination of a loan and the Administrator fails to provide a letter under subparagraph (A) before the later of </chapeau><clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/e/5/C/i" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">the expiration of the 45-day period under such subparagraph, or</content></clause><clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/e/5/C/ii" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="ii"> (ii) </num><content style="-uslm-dtd:text">the closing of the loan, no person shall have an obligation under this title to require the purchase of flood insurance for the building or mobile home securing the loan until such letter is provided.</content></clause> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/e/6" styleType="OLC"> <num style="-uslm-dtd:enum" value="6">(6) </num><heading style="-uslm-dtd:header">Applicability.—</heading><content style="-uslm-dtd:text">This subsection shall apply to all loans outstanding on or after the date of enactment of the Riegle Community Development and Regulatory Improvement Act of 1994.<ref style="-uslm-dtd:footnote-ref" idref="ID139180D3EAAD4BA7B30BBECE6301A45C" class="footnoteRef">6</ref></content><footnote id="ID139180D3EAAD4BA7B30BBECE6301A45C" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">6</sup><p style="-uslm-dtd:para; margin-left:1em">September 23, 1994.</p></footnote> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/f" styleType="OLC"> <num style="-uslm-dtd:enum" value="f">(f) </num><heading style="-uslm-dtd:header">Civil Monetary Penalties for Failure To Require Flood Insurance or Notify.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Civil monetary penalties against regulated lenders.—</heading><content style="-uslm-dtd:text">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).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Lender violations.—</heading><chapeau style="-uslm-dtd:text">The violations referred to in paragraph (1) shall include—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/f/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><chapeau style="-uslm-dtd:text">making, increasing, extending, or renewing loans in violation of—</chapeau> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/f/2/A/i" styleType="OLC"> <num style="-uslm-dtd:enum" value="i">(i) </num><content style="-uslm-dtd:text">the regulations issued pursuant to subsection (b) of this section;</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/f/2/A/ii" styleType="OLC"> <num style="-uslm-dtd:enum" value="ii">(ii) </num><content style="-uslm-dtd:text">the escrow requirements under subsection (d) of this section; or</content> </clause> <clause style="-uslm-dtd:clause" identifier="/us/sComp/93/234/tI/s102/f/2/A/iii" styleType="OLC"> <num style="-uslm-dtd:enum" value="iii">(iii) </num><content style="-uslm-dtd:text">the notice requirements under section 1364 of the National Flood Insurance Act of 1968; or</content> </clause> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/f/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">failure to provide notice or purchase flood insurance coverage in violation of subsection (e) of this section.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/3" styleType="OLC"> <num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Civil monetary penalties against gse's.—</heading> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/f/3/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">If the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation is found by the Director of the Federal Housing Finance Agency to have a pattern or practice of purchasing loans in violation of the procedures established pursuant to subsection (b)(3), the Director of such Office shall assess a civil penalty against such enterprise in the amount provided under paragraph (5) of this subsection.</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/f/3/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Definition.—</heading><content style="-uslm-dtd:text">For purposes of this subsection, the term “<term style="-uslm-dtd:term">enterprise</term>” means the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/4" styleType="OLC"> <num style="-uslm-dtd:enum" value="4">(4) </num><heading style="-uslm-dtd:header">Notice and hearing.—</heading><content style="-uslm-dtd:text">A penalty under this subsection may be issued only after notice and an opportunity for a hearing on the record.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/5" styleType="OLC"> <num style="-uslm-dtd:enum" value="5">(5) </num><heading style="-uslm-dtd:header">Amount.—</heading><content style="-uslm-dtd:text">A civil monetary penalty under this subsection may not exceed $2,000 for each violation under paragraph (2) or paragraph (3).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/6" styleType="OLC"> <num style="-uslm-dtd:enum" value="6">(6) </num><heading style="-uslm-dtd:header">Lender compliance.—</heading><content style="-uslm-dtd:text">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).</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/7" styleType="OLC"> <num style="-uslm-dtd:enum" value="7">(7) </num><heading style="-uslm-dtd:header">Effect of transfer on liability.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/8" styleType="OLC"> <num style="-uslm-dtd:enum" value="8">(8) </num><heading style="-uslm-dtd:header">Deposit of penalties.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/9" styleType="OLC"> <num style="-uslm-dtd:enum" value="9">(9) </num><heading style="-uslm-dtd:header">Additional penalties.—</heading><content style="-uslm-dtd:text">Any penalty under this subsection shall be in addition to any civil remedy or criminal penalty otherwise available.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/f/10" styleType="OLC"> <num style="-uslm-dtd:enum" value="10">(10) </num><heading style="-uslm-dtd:header">Statute of limitations.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/g" styleType="OLC"> <num style="-uslm-dtd:enum" value="g">(g) </num><heading style="-uslm-dtd:header">Other Actions To Remedy Pattern of Noncompliance.—</heading> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/g/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Authority of federal entities for lending regulation.—</heading><content style="-uslm-dtd:text">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.</content> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/g/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Determination of violations.—</heading><chapeau style="-uslm-dtd:text">A determination under this paragraph shall be a finding that—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/g/2/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">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) or the notice requirements under section 1364 of the National Flood Insurance Act of 1968; and</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/g/2/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">the regulated lending institution has not demonstrated measurable improvement in compliance despite the assessment of civil monetary penalties under subsection (f).</content> </subparagraph> </paragraph> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tI/s102/h" styleType="OLC"> <num style="-uslm-dtd:enum" value="h">(h) </num><heading style="-uslm-dtd:header">Fee for Determining Location.—</heading><chapeau style="-uslm-dtd:text">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:</chapeau> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/h/1" styleType="OLC"> <num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Borrower fee.—</heading><chapeau style="-uslm-dtd:text">The borrower under such a loan may be charged the fee, but only if the determination—</chapeau> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/h/1/A" styleType="OLC"> <num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">is made pursuant to the making, increasing, extending, or renewing of the loan that is initiated by the borrower;</content> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/h/1/B" styleType="OLC"> <num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">is made pursuant to a revision or updating under section 1360(f)<ref style="-uslm-dtd:footnote-ref" idref="IDE1E7232885F64CD39377BE2159DA04EB" class="footnoteRef">7</ref> of the floodplain areas and flood-risk zones or publication of a notice or compendia under subsection (h) or (i) of section 1360<ref style="-uslm-dtd:dangling-footnote-ref" class="footnoteRef">7</ref> 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 Administrator, may reasonably be considered to require a determination under this subsection; or</content><footnote id="IDE1E7232885F64CD39377BE2159DA04EB" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">7</sup><p style="-uslm-dtd:para; margin-left:1em">Probably intended to refer to section 1360 of the National Flood Insurance Act of 1968, which is set forth, post, in this compilation.</p></footnote> </subparagraph> <subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/93/234/tI/s102/h/1/C" styleType="OLC"> <num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">results in the purchase of flood insurance coverage pursuant to the requirement under subsection (e)(2).</content> </subparagraph> </paragraph> <paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/93/234/tI/s102/h/2" styleType="OLC"> <num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Purchaser or transferee fee.—</heading><content style="-uslm-dtd:text">The purchaser or transferee of such a loan may be charged the fee in the case of sale or transfer of the loan.</content> <elided style="-uslm-dtd:omitted-text">* * * * * * *</elided> </paragraph> </subsection> </section> <num style="-uslm-dtd:enum" value="II">TITLE II—</num><heading style="-uslm-dtd:header">DISASTER MITIGATION REQUIREMENTS </heading> <section style="-uslm-dtd:section" identifier="/us/sComp/93/234/tII/s201" styleType="traditional"> <heading style="-uslm-dtd:header">notification to flood-prone areas </heading> <num style="-uslm-dtd:enum" value="201">Sec. 201. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s4105">42 U.S.C. 4105</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s201/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><content style="-uslm-dtd:text">Not later than six months following the enactment of this title, the Administrator shall publish information in accordance with subsection 1360(1) of the National Flood Insurance Act of 1968, and shall notify the chief executive officer of each known flood-prone community not already participating in the national flood insurance program of its tentative identification as a community containing one or more areas having special flood hazards.</content></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s201/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><content style="-uslm-dtd:text">After such notification, each tentatively identified community shall either (1) promptly make proper application to participate in the national flood insurance program or (2) within six months submit technical data sufficient to establish to the satisfaction of the Administrator that the community either is not seriously flood prone or that such flood hazards as may have existed have been corrected by floodworks or other flood control methods. The Administrator may, in his discretion, grant a public hearing to any community with respect to which conflicting data exist as to the nature and extent of a flood hazard. If the Administrator decides not to hold a hearing, the community shall be given an opportunity to submit written and documentary evidence. Whether or not such hearing is granted, the Administrator's final determination as to the existence or extent of a flood hazard area in a particular community shall be deemed conclusive for the purposes of this Act if supported by substantial evidence in the record considered as a whole.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s201/c" styleType="OLC"> <num style="-uslm-dtd:enum" value="c">(c) </num><content style="-uslm-dtd:text">As information becomes available to the Administrator, concerning the existence of flood hazards in communities not known to be flood prone at the time of the initial notification provided for by subsection (a) of this section he shall provide similar notifications to the chief executive officers of such additional communities, which shall then be subject to the requirements of subsection (b) of this section.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s201/d" styleType="OLC"> <num style="-uslm-dtd:enum" value="d">(d) </num><content style="-uslm-dtd:text">Formally identified flood-prone communities that do not qualify for the national flood insurance program within one year after such notification or by the date specified in section 202, whichever is later, shall thereafter be subject to the provisions of that section relating to flood-prone communities which are not participating in the program.</content> </subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s201/e" styleType="OLC"> <num style="-uslm-dtd:enum" value="e">(e) </num><content style="-uslm-dtd:text">The Administrator is authorized to establish administrative procedures whereby the identification under this section of one or more areas in the community as having special flood hazards may be appealed to the Administrator by the community or any owner or lessee of real property within the community who believes his property has been inadvertently included in a special flood hazard area by the identification. When, incident to any appeal under this subsection, the owner or lessee of real property or the community, as the case may be, incurs expense in connection with the services of surveyors, engineers, or similar services, but not including legal services, in the effecting of an appeal which is successful in whole or part, the Administrator shall reimburse such individual or community to an extent measured by the ratio of the successful portion of the appeal as compared to the entire appeal and applying such ratio to the reasonable value of all such services, but no reimbursement shall be made by the Administrator in respect to any fee or expense payment, the payment of which was agreed to be contingent upon the result of the appeal. There is authorized to be appropriated for purposes of implementing this subsection not to exceed $250,000.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/93/234/tII/s202" styleType="traditional"> <heading style="-uslm-dtd:header">effect of nonparticipation in flood insurance program </heading> <num style="-uslm-dtd:enum" value="202">Sec. 202. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s4106">42 U.S.C. 4106</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s202/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><content style="-uslm-dtd:text">No Federal officer or agency shall approve any financial assistance for acquisition or construction purposes on and after July 1, 1975, for use in any area that has been identified by the Administrator as an area having special flood hazards unless the community in which such area is situated is then participating in the national flood insurance program.</content></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s202/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><content style="-uslm-dtd:text">In addition to the requirements of section 1364 of the National Flood Insurance Act of 1968, each Federal entity for lending regulation shall by regulation require the regulated lending institutions described in such section, and each Federal agency lender shall issue regulations requiring the Federal agency lender,<ref style="-uslm-dtd:footnote-ref" idref="ID3A83D982360144B0814C1FF09AA6FC97" class="footnoteRef">8</ref> described in such section to notify (as a condition of making, increasing, extending, or renewing any loan secured by property described in such section) the purchaser or lessee of such property of whether, in the event of a disaster caused by flood to such property, Federal disaster relief assistance will be available to such property.</content><footnote id="ID3A83D982360144B0814C1FF09AA6FC97" style="-uslm-dtd:footnote"><sup style="-uslm-dtd:superscript">8</sup><p style="-uslm-dtd:para; margin-left:1em">So in law.</p></footnote> <elided style="-uslm-dtd:omitted-text">* * * * * * *</elided> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/93/234/tII/s205" styleType="traditional"> <heading style="-uslm-dtd:header">authority to issue regulations </heading> <num style="-uslm-dtd:enum" value="205">Sec. 205. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s4128">42 U.S.C. 4128</ref><b>]</b> </editorialNote><subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s205/a" styleType="OLC" class="inline"><num style="-uslm-dtd:enum" value="a">(a) </num><content style="-uslm-dtd:text">The Administrator is authorized to issue such regulations as may be necessary to carry out the purpose of this Act.</content></subsection> <subsection style="-uslm-dtd:subsection" identifier="/us/sComp/93/234/tII/s205/b" styleType="OLC"> <num style="-uslm-dtd:enum" value="b">(b) </num><content style="-uslm-dtd:text">The head of each Federal agency that administers a program of financial assistance relating to the acquisition, construction, reconstruction, repair, or improvement of publicly or privately owned land or facilities, and each Federal instrumentality responsible for the supervision, approval, regulation, or insuring of banks, savings and loan associations, or similar institutions, shall, in cooperation with the Administrator, issue appropriate rules and regulations to govern the carrying out of the agency's responsibilities under this Act.</content> </subsection> </section> <section style="-uslm-dtd:section" identifier="/us/sComp/93/234/tII/s206" styleType="traditional"> <heading style="-uslm-dtd:header">consultation with local officials </heading> <num style="-uslm-dtd:enum" value="206">Sec. 206. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s4107">42 U.S.C. 4107</ref><b>]</b> </editorialNote><content style="-uslm-dtd:text">In carrying out his responsibilities under the provisions of this title and the National Flood Insurance Act of 1968 which relate to notification to and identification of flood-prone areas and the application of criteria for land management and use, including criteria derived from data reflecting new developments that may indicate the desirability of modifying elevations based on previous flood studies, the Administrator shall establish procedures assuring adequate consultation with the appropriate elected officials of general purpose local governments, including but not limited to those local governments whose prior eligibility under the program has been suspended. Such consultations shall include, but not be limited to, fully informing local officials at the commencement of any flood elevation study or investigation undertaken by any agency on behalf of the Administrator concerning the nature and purpose of the study, the areas involved, the manner in which the study is to be undertaken, the general principles to be applied, and the use to be made of the data obtained. The Administrator shall encourage local officials to disseminate information concerning such study widely within the community, so that interested persons will have an opportunity to bring all relevant facts and technical data concerning the local flood hazard to the attention of the agency during the course of the study.</content> <elided style="-uslm-dtd:omitted-text">* * * * * * *</elided> </section>