[Code of Federal Regulations]

[Title 12, Volume 6]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR614.4930]



[Page 143-144]

 

                       TITLE 12--BANKS AND BANKING

 

                 CHAPTER VI--FARM CREDIT ADMINISTRATION

 

PART 614_LOAN POLICIES AND OPERATIONS--Table of Contents

 

                 Subpart S_Flood Insurance Requirements

 

Sec. 614.4930  Requirement to purchase flood insurance where available.



    (a) In general. A System institution shall not make, increase, 

extend or renew any designated loan unless the building or mobile home 

and any personal property securing the loan are covered by flood 

insurance for the term of the loan. The amount of insurance must be at 

least equal to the outstanding principal balance of the designated loan 

or the maximum limit of coverage available for the particular type of 

property under the 1968 Act. Flood insurance coverage under the Act is 

limited to the overall value of the property securing the designated 

loan minus the value of the land on which the property is located.

    (b) Table funded loans. A System institution that acquires a loan 

from a mortgage broker or other entity through table funding shall be 

considered to be making a loan for purposes of this part.



[[Page 144]]



    (c) Exemptions. The flood insurance requirement of paragraph (a) of 

this section does not apply with respect to:

    (1) Any State-owned property covered under a policy of self-

insurance satisfactory to the Director of FEMA, who publishes and 

periodically revises the list of States falling within this exemption; 

or

    (2) Property securing any loan with an original principal balance of 

$5,000 or less and a repayment term of one year or less.