[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: 12CFR614.4945]



[Page 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. 614.4945  Forced placement of flood insurance.



    If a System institution, or a servicer acting on behalf of the 

institution, determines at any time during the term of a designated 

loan, that the building or mobile home and any personal property 

securing the designated loan are not covered by flood insurance or are 

covered by flood insurance in an amount less than the amount required 

under Sec. 614.4930(a), then the institution or its servicer shall 

notify the borrower that the borrower should obtain flood insurance, at 

the borrower's expense, in an amount at least equal to the amount 

required under Sec. 614.4930(a), for the remaining term of the loan. If 

the borrower fails to obtain flood insurance within 45 days after 

notification, then the institution or its servicer shall purchase 

insurance on the borrower's behalf. The institution or its servicer may 

charge the borrower for the cost of premiums and fees incurred in 

purchasing the insurance.