FLOOD08456

• County: Statewide
• Basin: Statewide
• Title: Federal Regulations and Instructions on Flood Insurance Compliance for Lenders and Servicers
• Date: 3/1/1991
• Prepared For: NFIP
• Prepared By: FEMA
• Floodplain - Doc Type: Historic FEMA Regulatory Floodplain Information

COMPTROLLER OF THE CURRENCY, TREASURY
12 CFR CH. 1 (1-1-90 EDITION) PAGES 318-319

PAlT 22-LOANS IN AREAS HAVING
SPECIAL FLOOD HAZARDS

Sec.
22.0 Scope.
22.1 Deflnltlona.
22.2 Requirement to purchase flood Insur-
ance In partlclpatlna communities.
22.3 Exemption.
22.. Notice of 8peclal flood hazards and of
avaUabWty of Federal dlaaater relief as.
8latance.
22.5 Recorda of compllance.
APPaDIX-8.uIPLZ NOTIca TO BOUOWD
AU'l'Roarrr. .2 u.s.e. .003. noe. .012a,
nou. n28.
Sooacs: .3 PH 7n8. Feb. 22. 1978. unless
otherwise noted.

. 22.0 Seope.

Th1a part applles to certain loans sew
cured by improved real eatate made by
b&nU In areu determined by the DI-
rector of the Federal Emerpncy Man-
&Cement Aaency to have specl&l flood
hazards.

[51 PH 18307. May 19. 1988]

. 22.1 Definitions.

(a) The term "bank" means a nation-
al banklna' &88OClatlon or a bank locat-
ed in the District of Columbia and
subJect to the supervision of the
Comptroller of the Currency.
(b) The term "loan" means any loan
secured by improved real estate or a
mobUe home located or to be located
In an area that has been Identified by
the Director of the Federal Emergen-
cy Manaaement Aaency as an area
having special flood hazards.
(c) The term "community" means a
state or a polltlcal subdlvislon thereof
which has buUdina code Jurisdiction
over a particular area having special
flood hazards.
(d) The phrase "partlclpatlnc com-
munity" means a community which
has been dealIn&ted as ell8lble for the
8&le of lnaUJ'&DCe' by the DIrectar of
the Federal Emergency ~
Aaency PUl'8U&llt to 44 CPR Part 14
and In which flood lnaurance II cur-
rently belnc sold.
(e) The phase "nonpartlclJJattDc
community" means a COIDIDUDlty
which has Jurisdlctlon over an ana
having specl&l flood huarda aDd
which II not partlclpatlnc In the Na-
tional Flood Insurance ProIram.

[.3 PR '1n8. Feb. 22. 19'18. as ameaded .,1
PR 18307. May 19. 1986]

.22,2 Requirement to pure.......... ..
.annce In putleipati... eo..........

No bank shall make. Incnue,
extend. or renew any loan as deftned
In I 22.1(b) 111 a partlclpatlnc oommu.
nlty where (lood lnaurance II available

under the National Flood Inaun.ace
Act of 1968. unless the buUcUq or
mobUe home and any perao~ proper.
ty securing such loan is covel'lol8 for
its entire term by flood lnsur&nce. The
amount of that lnaurance muat be at
least equal to the lesser of the out-
standing principal balance of the loan
or the maximum llm1t of coverap
avaUable for the particular type of
property under the Act.

. 22.J Exemption.

Notwlthatandina I 22.2. flood lnaur-
~ce shall not be required on &D1
~tate-owned property that II covered
Under an adequate pollcy of aelf-inlur-
-.nce satlafactory to the Director of
!the Federal Emerpncy Man&aement
Agency who ahall publlah and per1odi-
iC&lly revile the llat of states falllnl
'within the exemption provided by this
$ectlon.

(51 PR 18307. II&)' 19. 1988]

. 21.4 Notice of 8pecial ftOCNl ...... ....
ola...u.wutr 01 Peden! diauW nUeI
._1'-."',

(a) In malrt"lr. Increaalnc. extencUq,
or renewtnc any loan as deflnecl In
I 22.1(b). each bank ahall mall or deUv-
er a written notice to the borrower
stating (1) that the property aecurlDC
the loan is In a flood hazard area (or
In lleu of thla notification, a bank m.&f
obtain satlafactory written UIUnDC8
trom a seller or lelllllOr that such I8Uer
of lessor has notified the borrower.
prior to the execution of any agree-
ment for sale or lease. that the proper-
~y aecurlntr the loan is In such an area)
and (2) whether Federal disaster rellef
aaa1atance may be avallable In the
event of damage to the property
cauaed by flooding In a federally de-
clared disaster. Each bank shall re-
quire the borrower. prior to closing. to
acknowledge In writing that the bor-
rower reallzes that the property secur.
ing the loan is In a flood hazard area
and that the borrower has received
the notice reprdlng Federal disaster
rellef uslltance.
(b) A bank which provides written
notice contalnlng the language pre-
sented in the Appendix to this regula-
tion within the time llm1ts prescribed
"bove will comply with the notice re-
qutrementa of paracraph (a) of this
section.

. 22.5 Recorda of eompliance.

For all loans secured by improved
real estate or a mobile home, each
bank ahall maintain sufficient records
to Incllcate the method uaed In deter-
rnfIlMe-1Ilhetllla. sueh;IOllUl.fd.1Rthln
the provisions ot'thts relUlatlon.

Al'Pl:NDIX-BAMPLJ: NOTICJ:8 TO
BORROWJ:R

(1) NOTICII: TO BoUOWD 01' SnclAL FLooD
HAzA1uI ADA

Notice la hereby liven to that
the Improved real estate or mobile home de-
scribed In the attached Instnunent la or win
be located In an area deal8nated by the DI.
rector of the Federal Emel'8ency Manaae-
ment Alrency as a special flood hazard area.
Thla area Is delineated on 's
Flood Insurance Rate Map (FIRM) or. If
the FIRM Is unavailable. on the Flood
Hazard Boundar)' Map (FHBM). Thla area
has a 1 percent chance of belna flooded
within any liven year. The rlaIt of exc:eed1nc
the 1 percent chance Increaaea with time pe-
riods longer than one year. For example.
dUl'ins the life of a 30 year mort....e. a
structure located In a special flood hazard
area baa a 26 percent chance of belna flood.
ed.
(2) NOTICII: TO BoUOWD ABOUT FDDAL Du-
AIDa Ra.mr AaauTAJfCII:

(a) Nott.ce in Participating Communitiu.
The Improved real estate or mobile home se.
cUl'ins your loan la or will be located In a
community that la now partlclpatlng In the
National Flood Insurance Prouam. In the
event such property Is damapd by floodlna
In a federally declared dlaaater. Federal dIIJ.
aster reUef aaalatance may be available.
However, 8uch 888latance will be unavailable
If the community has been Identified for at
least one year as a flood hazard area and la
not participating In the National Flood In.
surance Promm at the time the aaalatanoe
would be approved. Thla aaslatance, uauaur
In the form of a loan with a favorable inter-
est rate. may be avallable for damapa in-
curred In excess of your flood Insurance.
(b) Notice in Nonparticipating Communi-
tiu. The Improved real estate or mobUe
home aecUl'ins your loan la or will be located
In a community that la not partlclpatlna In
the National Flood Inaurance Procram.
Thla means that such property la not eup.
ble for Federal flood Insurance. In the event
the property la damaared by floodlng In a
federally declared dlaaater. federal cUaaater
frellef aaalatance will be unavallable If the
communlty baa been Identified for at least
one year as a flood hazard area. Such aaalat-
&nee ID&J' be available only If. at the time
the aaa.Iatance would be approved, the com-
munity Is partlclpatlna In the National
Flood ID8urance Procram or has been Iden-
tified as a flood hazard area for less than
one year.

H3 FR 7U8. Feb. 22. 1978. as amended at 51
PH 18308, May 19. 1988J

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