12 C.F.R. § 614.4930 Requirement to purchase flood insurance where available.
Title 12 - Banks and Banking
(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. (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.
Title 12: Banks and Banking
PART 614—LOAN POLICIES AND OPERATIONS
Subpart S—Flood Insurance Requirements
§ 614.4930 Requirement to purchase flood insurance where available.
