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<br />SECTION 206.1 OF THE COMPTROLLER'S HANDBOOK FOR CONSUMER EXAMINATIONS, <br />COMPTROLLER OF THE CURRENCY <br /> <br />Flood Disaster Protection Act <br />Introduction <br /> <br />Section 206.1 <br /> <br />areas as a condition for making flood insurance <br />available in those areas. <br /> <br />. Directing financial r.gulatory 42 USC <br />ag.nci.s to .nsure that their in- 40121(b) <br />stitutions 'do not make loans s.- <br />cured by real .stat. or mobile homes located, or to <br />be locat.d, in a flood-prone "I, if that ... is <br />participating in the national flood insurlnc. pr0- <br />gram Ind such property is not covered by federal <br />flood inauranc.. <br /> <br />. Directing financial r.gulltory 42 use <br />ag.nci.s to require th.ir institu- 41041 <br />tions, IS a condition to mlking <br />f100d-rellt.d lOins. to notify the purchaser or I.s... <br />of the lVIillbility of fed.rll disaster ..Ii.f IIsis- <br />tanc. Ind of the possibility of flood hazlrds. <br /> <br />. Directing f.d.rlllg.nci.s, such 42 use <br />IS FHA and VA, not to subsidiz.. 40121(1) <br />insure, guarant... or IpplOYl Iny <br />flood-rellt.d loan, if the property in connection with <br />the loan is in I flood hazlrd arel of a nonplrticipat- <br />ing community. <br /> <br />Property Eligible for Flood Insurance <br /> <br />The national flood insuranc. progrlm covers implOYld <br />18a'estat. or mobil. hom.s loclt.d. or to be loclt.d. in <br />an a18a that h.s been id.ntifi.d by the FEMAII having <br />special flood hazards, including: <br /> <br />. Construction loans for buildings under construction <br />that Ire wall.d .nd roof.d. <br /> <br />. Mobil. homes. on or .ft.r October 1.1882. thlt 118 <br />Iffix.d to. permanent sit. (Incho18d) to 18Sist flota- <br />tion, coll.ps.. or Ilt.r.1 movem.nt by providing <br />OIIer-the-top .nd frame ties to ground Inchors, un- <br />I.ss it is . mobil. home on . 1ound.tion continu- <br />ously insu18d at the sam. sit. by the Nltional Flood <br />Insur.nc. Program at I.ast sinc. Sept.mber 30. <br />1982. <br /> <br />. Deal.rs' inventori.s pf mobile homes on tounda- <br />tions. . <br /> <br />. Condominiums or townhouses that 118 contiguous <br />to the ground, cap.bl. of separlte ownership .nd <br />having I.gal d.scriptiOns. <br /> <br />. High-rise condominiums with common ownership. <br /> <br />. Other types of 18sidentjal. industrial. commerci.1 <br />and agricultural buildings with .ny.walled and roof. <br />ed structu18 that is principally above ground .nd <br />affixed to a permanent site. <br /> <br />Each building is insured separately, .s is each mobile <br /> <br />2 <br /> <br />home, including those in deal.r inventories that .re <br />.ligible 10r coverage. Policies for high-rise condomini. <br />ums are issued to the condominium owners' ISsoci.tion <br />Ind policies on individual units Ire issu.d to unit <br />owners. Each unit also is .ligibl. 10r contents coverage <br />on personal property cont.ined within I fully enclosed <br />building . <br /> <br />Fersonll property inaurlnce cover. 42 CFR Part 61 <br />1ge is IVlillble for machin.ry. AppendixA1 <br />equipment, fildu18S, .nd furnishings n A2 <br />contained in 1881 property or I mobil. hom.. <br /> <br />Exemptions <br /> <br />Types of projects 10r whiCh flood insur.nce policies .re <br />not lVIillbl. include: <br /> <br />. Unimproved lind, bridges, dams .nd roads. <br /> <br />. Mobil. homes on or ....r October 1, 1982. not af. <br />fix.d to . permanent sit. (Inchored) to ..sist flota- <br />tion, COlllPse, or Ilt.r.' movement by providing <br />OII'Ir-the-top Ind fr.me ties to ground .nchor. <br /> <br />. Trlvel trlilers Ind clmpers. <br /> <br />. Convert.d buses or vans. <br /> <br />. Buildings .nti18ly in, on, or Oller water into which <br />boats Ire floated, <br /> <br />. Buildings newly constNct.d or substanti.lly im. <br />pIOV8d on or"'er October 1, 1983, in.n 118. desig. <br />nated II In undeveloped coast.1 blrrier within the <br />Coutal Barrier Resource System est.blished by <br />the Co.Stll B.rri.r Resources Act (Public L.w <br />97-348.) . <br /> <br />Flood insuranc. is not l8qui18d on Iny 22.3 <br />st.te-owned property th.t is covered <br />under .n Idequate policy of ..If.insurlnc. satisfactory <br />to FEMA. FEMA publishes Ind periOdic.lly revises the <br />list of states filling within this exemption. <br /> <br />Flood Insurance Determination <br /> <br />Under the FOPA, financill institutiOns must determine <br />whither property connected with I loan Ipplicltion is <br />located in I speci., flood tlazlrd ..... "so. the fin.nci., <br />institution must .Iso decide whether the property is <br />Iocat.d in I community that participates in the n.tion.1 <br />flood insurlnc. program. A finlncill institution may not <br />mak., inc"IM, ext.nd or...,. Iny di18ct conventional <br />loan secu18d by implOYld 1811 estate or . mobile home <br />located in I flood haz.rd .re. if III of the following <br />conditions .xist: <br /> <br />. A flood haz.rd boundary map or . flood insurance <br /> <br />~"Hafttt_""COft_E=,::,=: <br /> <br />-4- <br />