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-3- . "modified in many states by statutes requlrlng that subdividers in- vestigate and divulge information concerning soil or flood hazards. In addition, courts have modified common law rules in some jurisdic- tions to hold sellers liable for flood damages, particularly when sellers represented land or its buildings as suitable for particular uses (e.g., residential). (See Chapter 4.) 4. Q. Are banks liable to mortgagees for failing to disclose flood hazards? A. In certain circumstances banks may be liable to mortgagees of properties for failing to disclose flood hazards as required by federal banking regulations. Several federal courts have held that mortgagees have a private cause of action against banks under such regulations. Several other courts have held that no cause of action lies. (See Chapter 4.) . 5. Q. Are governmental bodies liable when their actions which (a) cause or (b) fail to restrain flooding on someone's land? A. In general, government bodies are not responsible for failing to prevent flood damages but they may be liable for causing flooding. This depends in part on the level of government. The federal government is generally immune from liability for flood losses which are caused by federal flood control projects. 33 U.S.C. Section 702c declares: "No liability of any kind shall attach to or rest upon the United States for any damage from or by floods or flood waters at any place. . . ." States, special districts, and local governments may be held liable under certain circumstances. Where a public entity under- takes to control flooding and does so improperly or inadequately, liability may result. For example, a flood control district may be held liable for the negligence in constructing a levee which causes overflow of lands. A municipality may also be liable for . . I ______