
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC4017]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
           SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
 
Sec. 4017. National Flood Insurance Fund


(a) Establishment; availability

    To carry out the flood insurance program authorized by this chapter, 
the Director shall establish in the Treasury of the United States a 
National Flood Insurance Fund (hereinafter referred to as the ``fund'') 
which shall be an account separate from any other accounts or funds 
available to the Director and shall be available as described in 
subsection (f) of this section, without fiscal year limitation (except 
as otherwise provided in this section)--
        (1) for making such payments as may, from time to time, be 
    required under section 4054 of this title;
        (2) to pay reinsurance claims under the excess loss reinsurance 
    coverage provided under section 4055 of this title;
        (3) to repay to the Secretary of the Treasury such sums as may 
    be borrowed from him (together with interest) in accordance with the 
    authority provided in section 4016 of this title; and
        (4) to the extent approved in appropriations Acts, to pay any 
    administrative expenses of the flood insurance and floodplain 
    management programs (including the costs of mapping activities under 
    section 4101 of this title);
        (5) for the purposes specified in subsection (d) of this section 
    under the conditions provided therein;
        (6) for carrying out the program under section 4022(b) of this 
    title;
        (7) for transfers to the National Flood Mitigation Fund, but 
    only to the extent provided in section 4104d(b)(1) of this title; 
    and
        (8) for costs of preparing the report under section 577 of the 
    Riegle Community Development and Regulatory Improvement Act of 1994, 
    except that the fund shall be available for the purpose under this 
    paragraph in an amount not to exceed an aggregate of $5,000,000 over 
    the 2-year period beginning on September 23, 1994.

(b) Credits to Fund

    The fund shall be credited with--
        (1) such funds borrowed in accordance with the authority 
    provided in section 4016 of this title as may from time to time be 
    deposited in the fund;
        (2) premiums, fees, or other charges which may be paid or 
    collected in connection with the excess loss reinsurance coverage 
    provided under section 4055 of this title;
        (3) such amounts as may be advanced to the fund from 
    appropriations in order to maintain the fund in an operative 
    condition adequate to meet its liabilities;
        (4) interest which may be earned on investments of the fund 
    pursuant to subsection (c) of this section;
        (5) such sums as are required to be paid to the Director under 
    section 4015(d) of this title; and
        (6) receipts from any other operations under this chapter 
    (including premiums under the conditions specified in subsection (d) 
    of this section, and salvage proceeds, if any, resulting from 
    reinsurance coverage).

(c) Investment of moneys in obligations issued or guaranteed by United 
        States

    If, after--
        (1) all outstanding obligations of the fund have been 
    liquidated, and
        (2) any outstanding amounts which may have been advanced to the 
    fund from appropriations authorized under section 4127(a)(2)(B) of 
    this title have been credited to the appropriation from which 
    advanced, with interest accrued at the rate prescribed under section 
    2414(e) of this title, as in effect immediately prior to August 1, 
    1968,

the Director determines that the moneys of the fund are in excess of 
current needs, he may request the investment of such amounts as he deems 
advisable by the Secretary of the Treasury in obligations issued or 
guaranteed by the United States.

(d) Availability of Fund if operation of program is carried out through 
        facilities of Federal Government

    In the event the Director makes a determination in accordance with 
the provisions of section 4071 of this title that operation of the flood 
insurance program, in whole or in part, should be carried out through 
the facilities of the Federal Government, the fund shall be available 
for all purposes incident thereto, including--
        (1) cost incurred in the adjustment and payment of any claims 
    for losses, and
        (2) payment of applicable operating costs set forth in the 
    schedules prescribed under section 4018 of this title,

for so long as the program is so carried out, and in such event any 
premiums paid shall be deposited by the Director to the credit of the 
fund.

(e) Annual budget

    An annual business-type budget for the fund shall be prepared, 
transmitted to the Congress, considered, and enacted in the manner 
prescribed by sections 9103 and 9104 of title 31 for wholly-owned 
Government corporations.

(f) Availability of funds dependent on future appropriations acts

    The fund shall be available, with respect to any fiscal year 
beginning on or after October 1, 1981, only to the extent approved in 
appropriation Acts; except that the fund shall be available for the 
purpose described in subsection (d)(1) of this section without such 
approval.

(Pub. L. 90-448, title XIII, Sec. 1310, Aug. 1, 1968, 82 Stat. 577; Pub. 
L. 97-35, title III, Sec. 341(c), Aug. 13, 1981, 95 Stat. 419; Pub. L. 
98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 
98-479, title II, Sec. 203(j)(1), Oct. 17, 1984, 98 Stat. 2231; Pub. L. 
100-242, title V, Sec. 545(d), Feb. 5, 1988, 101 Stat. 1942; Pub. L. 
101-508, title II, Sec. 2302(e)(3), Nov. 5, 1990, 104 Stat. 1388-24; 
Pub. L. 103-325, title V, Secs. 542, 554(b), 577(h), Sept. 23, 1994, 108 
Stat. 2269, 2274, 2283.)

                       References in Text

    For provisions relating to the report under section 577 of the 
Riegle Community Development and Regulatory Improvement Act of 1994, 
referred to in subsec. (a)(8), see section 577(a)-(g) of Pub. L. 103-
325, set out as an Evaluation of Erosion Hazards note under section 4001 
of this title.


                               Amendments

    1994--Subsec. (a). Pub. L. 103-325, Secs. 554(b)(1), 577(h)(1), in 
introductory provisions, substituted ``shall'' for ``is authorized to'' 
after ``Director'', inserted ``an account separate from any other 
accounts or funds available to the Director and shall be'' after ``which 
shall be'', and inserted ``(except as otherwise provided in this 
section)'' after ``without fiscal year limitation''.
    Subsec. (a)(6) to (8). Pub. L. 103-325, Secs. 542, 554(b)(2), 
577(h)(2), added pars. (6) to (8), respectively.
    1990--Subsec. (a)(4). Pub. L. 101-508 amended par. (4) generally. 
Prior to amendment, par. (4) read as follows: ``to pay such 
administrative expenses (or portion of such expenses) of carrying out 
the flood insurance program as he may deem necessary; and''.
    1988--Subsec. (e). Pub. L. 100-242 substituted ``title 31, United 
States Code,'' for ``title 31, United States Code'', which for purposes 
of codification was translated as ``title 31'', requiring no change in 
text.
    1984--Subsec. (e). Pub. L. 98-479 substituted ``sections 9103 and 
9104 of title 31'' for ``law (sections 102, 103, and 104 of the 
Government Corporations Control Act (31 U.S.C. 847-849))''.
    1983--Subsecs. (a), (b)(5), (c), (d). Pub. L. 98-181 substituted 
``Director'' for ``Secretary'' wherever appearing.
    1981--Subsec. (a). Pub. L. 97-35, Sec. 341(c)(1), inserted reference 
to subsec. (f) of this section.
    Subsec. (f). Pub. L. 97-35, Sec. 341(c)(2), added subsec. (f).


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of Title 12, Banks and Banking.

                  Section Referred to in Other Sections

    This section is referred to in sections 4015, 4016, 4071, 4101, 
4126, 4127 of this title.
