
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC4082]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
   SUBCHAPTER II--ORGANIZATION AND ADMINISTRATION OF FLOOD INSURANCE 
                                 PROGRAM
 
                       Part C--General Provisions
 
Sec. 4082. Use of insurance pool, companies, or other private 
        organizations for certain payments
        

(a) Authorization to enter into contracts for certain responsibilities

    In order to provide for maximum efficiency in the administration of 
the flood insurance program and in order to facilitate the expeditious 
payment of any Federal funds under such program, the Director may enter 
into contracts with pool formed or otherwise created under section 4051 
of this title, or any insurance company or other private organizations, 
for the purpose of securing performance by such pool, company, or 
organization of any or all of the following responsibilities:
        (1) estimating and later determining any amounts of payments to 
    be made;
        (2) receiving from the Director, disbursing, and accounting for 
    funds in making such payments;
        (3) making such audits of the records of any insurance company 
    or other insurer, insurance agent or broker, or insurance adjustment 
    organization as may be necessary to assure that proper payments are 
    made; and
        (4) otherwise assisting in such manner as the contract may 
    provide to further the purposes of this chapter.

(b) Terms and conditions of contract

    Any contract with the pool or an insurance company or other private 
organization under this section may contain such terms and conditions as 
the Director finds necessary or appropriate for carrying out 
responsibilities under subsection (a) of this section, and may provide 
for payment of any costs which the Director determines are incidental to 
carrying out such responsibilities which are covered by the contract.

(c) Competitive bidding

    Any contract entered into under subsection (a) of this section may 
be entered into without regard to section 5 of title 41 or any other 
provision of law requiring competitive bidding.

(d) Findings of Director

    No contract may be entered into under this section unless the 
Director finds that the pool, company, or organization will perform its 
obligations under the contract efficiently and effectively, and will 
meet such requirements as to financial responsibility, legal authority, 
and other matters as he finds pertinent.

(e) Bond; liability of certifying officers and disbursing officers

    (1) Any such contract may require the pool, company, or organization 
or any of its officers or employees certifying payments or disbursing 
funds pursuant to the contract, or otherwise participating in carrying 
out the contract, to give surety bond to the United States in such 
amount as the Director may deem appropriate.
    (2) No individual designated pursuant to a contract under this 
section to certify payments shall, in the absence of gross negligence or 
intent to defraud the United States, be liable with respect to any 
payment certified by him under this section.
    (3) No officer disbursing funds shall in the absence of gross 
negligence or intent to defraud the United States, be liable with 
respect to any payment by him under this section if it was based upon a 
voucher signed by an individual designated to certify payments as 
provided in paragraph (2) of this subsection.

(f) Term of contract; renewals; termination

    Any contract entered into under this section shall be for a term of 
one year, and may be made automatically renewable from term to term in 
the absence of notice by either party of an intention to terminate at 
the end of the current term; except that the Director may terminate any 
such contract at any time (after reasonable notice to the pool, company, 
or organization involved) if he finds that the pool, company, or 
organization has failed substantially to carry out the contract, or is 
carrying out the contract in a manner inconsistent with the efficient 
and effective administration of the flood insurance program authorized 
under this chapter.

(Pub. L. 90-448, title XIII, Sec. 1346, Aug. 1, 1968, 82 Stat. 585; Pub. 
L. 98-181, title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229.)


                               Amendments

    1983--Subsecs. (a), (b), (d), (e)(1), (f). Pub. L. 98-181 
substituted ``Director'' for ``Secretary'' wherever appearing.

                  Section Referred to in Other Sections

    This section is referred to in section 4056 of this title.
