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<br />COMPTROLLER OF THE CURRENCY <br /> <br />Article <br /> <br />Independent Banker's Association of America <br /> <br />Flood Disaster Protection Act <br /> <br />BY <br /> <br />STEVEN D. LINDSEY <br /> <br />NATIONAL BANK EXAMINER <br /> <br />COMPLIANCE POLICY <br /> <br />OFFICE OF THE COMPTROLLER OF THE CURRENCY <br /> <br />The Flood Disaster Protection Act of 1973 (42 U.S.C. 4003) prohibits <br /> <br />a federally regulated financial institution from making, increasing, <br /> <br />I <br />l <br />I <br />[ <br /> <br />, <br /> <br />extending or renewing ANY loan (business as well as consumer loans) <br /> <br />secured by improved real property or a mobile home which is on a <br /> <br />permanent foundation if the following three conditions exist: <br /> <br />o the property securing the loan is or will be located in a <br /> <br />special flood hazard area (SFHA) as identified by the <br />Federal Emergency Management Agency (FEMA), <br /> <br />o the community is participating in the National Flood <br /> <br />Insurance Program (NFIP) under the Federal Insurance <br /> <br />Administration, and <br /> <br />o flood insurance is not purchased for the property securing <br /> <br />the loan. <br /> <br />The Flood Disaster Protection Act (FDPA) also prohibits the use of <br /> <br />federal financial assistance (FHA, VA, etc.) for the acquisition or <br /> <br />construction of a structure in a SFHA. <br /> <br />,14, <br />