12 C.F.R. § 614.4955 Notice of special flood hazards and availability of Federal disaster relief assistance.
Title 12 - Banks and Banking
(a) Notice requirement. When a System institution makes, increases, extends, or renews a loan secured by a building or a mobile home located or to be located in a special flood hazard area, the institution shall mail or deliver a written notice containing the information specified in paragraph (b) of this section to the borrower and to the servicer of the loan. Notice is required whether or not flood insurance is available under the 1968 Act for the collateral securing the loan. (b) Contents of notice. The written notice must include the following information: (1) A warning, in a form approved by the Director of FEMA, that the building or the mobile home is or will be located in a special flood hazard area; (2) A description of the flood insurance purchase requirements set forth in section 102(b) of the 1973 Act (42 U.S.C. 4012a(b)); (3) A statement, where applicable, that flood insurance coverage is available under the NFIP and also may be available from private insurers; and (4) A statement whether Federal disaster relief assistance may be available in the event of damage to the building or the mobile home caused by flooding in a Federally declared disaster. (c) Timing of notice. The institution shall provide the notice required by paragraph (a) of this section to the borrower within a reasonable time before the completion of the transaction, and to the servicer as promptly as practicable after the institution provides notice to the borrower and in any event no later than the time the institution provides other similar notices to the servicer concerning hazard insurance and taxes. Notice to the servicer may be made electronically or may take the form of a copy of the notice to the borrower. (d) Record of receipt. Each institution shall retain a record of the receipt of the notices by the borrower and the servicer for the period of time the institution owns the loan. (e) Alternate method of notice. Instead of providing the notice to the borrower required by paragraph (a) of this section, an institution may obtain satisfactory written assurance from a seller or lessor that, within a reasonable time before the completion of the sale or lease transaction, the seller or lessor has provided such notice to the purchaser or lessee. The institution shall retain a record of the written assurance from the seller or lessor for the period of time the institution owns the loan. (f) Use of prescribed form of notice. An institution will be considered to be in compliance with the requirements of this section for notice to the borrower by providing written notice to the borrower containing the language presented in appendix A to this subpart within a reasonable time before the completion of the transaction. The notice presented in appendix A to this subpart satisfies the borrower notice requirements of the 1968 Act.
Title 12: Banks and Banking
PART 614—LOAN POLICIES AND OPERATIONS
Subpart S—Flood Insurance Requirements
§ 614.4955 Notice of special flood hazards and availability of Federal disaster relief assistance.
