
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: 42USC4104a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
  SUBCHAPTER III--COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT 
                      PROGRAMS IN FLOOD-PRONE AREAS
 
Sec. 4104a. Notice requirements


(a) Notification of special flood hazards

                 (1) Regulated lending institutions

        Each Federal entity for lending regulation (after consultation 
    and coordination with the Financial Institutions Examination 
    Council) shall by regulation require regulated lending institutions, 
    as a condition of making, increasing, extending, or renewing any 
    loan secured by improved real estate or a mobile home that the 
    regulated lending institution determines is located or is to be 
    located in an area that has been identified by the Director under 
    this chapter or the Flood Disaster Protection Act of 1973 as an area 
    having special flood hazards, to notify the purchaser or lessee (or 
    obtain satisfactory assurances that the seller or lessor has 
    notified the purchaser or lessee) and the servicer of the loan of 
    such special flood hazards, in writing, a reasonable period in 
    advance of the signing of the purchase agreement, lease, or other 
    documents involved in the transaction. The regulations shall also 
    require that the regulated lending institution retain a record of 
    the receipt of the notices by the purchaser or lessee and the 
    servicer.

                     (2) Federal agency lenders

        Each Federal agency lender shall by regulation require 
    notification in the manner provided under paragraph (1) with respect 
    to any loan that is made by the Federal agency lender and secured by 
    improved real estate or a mobile home located or to be located in an 
    area that has been identified by the Director under this chapter or 
    the Flood Disaster Protection Act of 1973 as an area having special 
    flood hazards. Any regulations issued under this paragraph shall be 
    consistent with and substantially identical to the regulations 
    issued under paragraph (1).

                       (3) Contents of notice

        Written notification required under this subsection shall 
    include--
            (A) a warning, in a form to be established by the Director, 
        stating that the building on the improved real estate securing 
        the loan is located, or the mobile home securing the loan is or 
        is to be located, in an area having special flood hazards;
            (B) a description of the flood insurance purchase 
        requirements under section 102(b) of the Flood Disaster 
        Protection Act of 1973 [42 U.S.C. 4012a(b)];
            (C) a statement that flood insurance coverage may be 
        purchased under the national flood insurance program and is also 
        available from private insurers; and
            (D) any other information that the Director considers 
        necessary to carry out the purposes of the national flood 
        insurance program.

(b) Notification of change of servicer

                      (1) Lending institutions

        Each Federal entity for lending regulation (after consultation 
    and coordination with the Financial Institutions Examination 
    Council) shall by regulation require regulated lending institutions, 
    in connection with the making, increasing, extending, renewing, 
    selling, or transferring any loan described in subsection (a)(1) of 
    this section, to notify the Director (or the designee of the 
    Director) in writing during the term of the loan of the servicer of 
    the loan. Such institutions shall also notify the Director (or such 
    designee) of any change in the servicer of the loan, not later than 
    60 days after the effective date of such change. The regulations 
    under this subsection shall provide that upon any change in the 
    servicing of a loan, the duty to provide notification under this 
    subsection shall transfer to the transferee servicer of the loan.

                     (2) Federal agency lenders

        Each Federal agency lender shall by regulation provide for 
    notification in the manner provided under paragraph (1) with respect 
    to any loan described in subsection (a)(1) of this section that is 
    made by the Federal agency lender. Any regulations issued under this 
    paragraph shall be consistent with and substantially identical to 
    the regulations issued under paragraph (1) of this subsection.

(c) Notification of expiration of insurance

    The Director (or the designee of the Director) shall, not less than 
45 days before the expiration of any contract for flood insurance under 
this chapter, issue notice of such expiration by first class mail to the 
owner of the property covered by the contract, the servicer of any loan 
secured by the property covered by the contract, and (if known to the 
Director) the owner of the loan.

(Pub. L. 90-448, title XIII, Sec. 1364, as added Pub. L. 93-383, title 
VIII, Sec. 816(a), Aug. 22, 1974, 88 Stat. 739; amended Pub. L. 98-181, 
title IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 103-325, 
title V, Sec. 527, Sept. 23, 1994, 108 Stat. 2263.)

                       References in Text

    The Flood Disaster Protection Act of 1973, referred to in subsec. 
(a)(1), (2), is Pub. L. 93-234, Dec. 31, 1973, 87 Stat. 975, as amended, 
which enacted sections 4002, 4003, 4012a, 4104, 4104a, 4105 to 4107, and 
4128 of this title, amended sections 4001, 4013 to 4016, 4026, 4054, 
4056, 4101, and 4121 of this title and sections 24 and 1709-1 of Title 
12, Banks and Banking, repealed section 4021 of this title, and enacted 
provision set out as a note under section 4001 of this title. For 
complete classification of this Act to the Code, see Short Title of 1973 
Amendment note set out under section 4001 of this title and Tables.


                               Amendments

    1994--Pub. L. 103-325 amended section generally. Prior to amendment, 
section read as follows: ``Each Federal instrumentality responsible for 
the supervision, approval, regulation, or insuring of banks, savings and 
loan associations, or similar institutions shall by regulation require 
such institutions, as a condition of making, increasing, extending, or 
renewing (after the expiration of thirty days following August 22, 1974) 
any loan secured by improved real estate or a mobile home located or to 
be located in an area that has been identified by the Director under 
this chapter or Public Law 93-234 as an area having special flood 
hazards, to notify the purchaser or lessee (or obtain satisfactory 
assurances that the seller or lessor has notified the purchaser or 
lessee) of such special flood hazards, in writing, a reasonable period 
in advance of the signing of the purchase agreement, lease, or other 
documents involved in the transaction.''
    1983--Pub. L. 98-181 substituted ``Director'' for ``Secretary''.

                  Section Referred to in Other Sections

    This section is referred to in sections 4012a, 4106 of this title.
