827 



formation on floodways and on controlling flood 



elevations is available. 

 (Pub. L. 90-448, title XTLT, § 1305, Aug. 1, 1968, 82 

 Stat. 574; Pub. L. 91-152, title rv. § 410(a), Dec. 24. 

 1969, 83 Stat. 397.) 



I As amended Pub. L. 92-213, § 2(c)(1), Dec. 22, 1971, 

 85 Stat. 775.) 



Amendments 



1971 — Subsec. (a). Pub. L. 92-213 added reference to 

 church properties. 



1969— Subsec. (c)(2). Pub. L. 91-152 substituted "De- 

 cember 31, 1971, adequate" for "June 30, 1970. permanent". 



§ 4012a. Requirement cf flood insurance for Federal 

 approval of financial assistance. 



(a) Amount and term of coverage. 



After the expiration of sixty days following Decem- 

 ber 31, 1973, no Federal officer or agency shall 

 approve any financial assistance for acquisition or 

 construction purposes for use in pnv area that has 

 been identified by the Secretary as an area having 

 special flood hazards and in v.-hich the sale of flood 

 insurance has been made available under this chap- 

 ter, unless the building or mobile home and any per- 

 sonal property to which such financial assistance 

 relates is, during the anticipated economic or useful 

 life of the project, covered by flood insurance in an 

 amount at least equal to its development or project 

 cost (less estimated land cost) or to the maximum 

 limit of coverage made available with respect to the 

 particular type of property under this chapter, 

 whichever is less: Provided, That if the flnonclal 

 assistance provided is in the form of a loan or an 

 Insurance or guaranty of a loan, the amount of flood 

 insurance required need not exceed the outstanding 

 principal balance of the loan and need not be re- 

 quired beyond the term of the loan. 



(b) Federal regulations for flood insurance require- 

 ment; amount of coverage. 

 Each Federal Instrumentality responsible for the 

 supervision, anproval. regulation, or insu'-lng of 

 banks, savings and loan associations, or similar insti- 

 tutions shall by regulation direct such institutions 

 not to make, increase, extend, or renew after the 

 expiration of sixty d'^ys following December 31, 1973, 

 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 Secretary as an area having 

 special flood hazards and in which flood insurance 

 has been made available under this chapter, unless 

 the building or mobile home and any personal prop- 

 erty securing such loan Is covered for the term of the 

 loan by flood insurance in an amount at least equal 

 to the outstanding principal balance of the loan or 

 to the maximum limit of coverage made available 

 with respect to the particular type of property under 

 the chapter, whichever is less. 



(c) State-owned property; exemption; list of States. 

 Notwithstanding the other provisions of this sec- 

 tion, flood insurance shall not be required on any 

 State-owned property that is covered under an ade- 

 quate State policy of self-insurance satisfactory to 

 the Secretary. The Secretary shall publish and pe- 

 riodically revise the lost of States to which this sub- 



section applies. (Pub. L. 93-234, title I. § 102. Dec. 31 

 1973, 87 Stat. 978.) 



§4013. Nature, and limitation of insurance coverage; 

 regulations. 



(a) The Secretary shall from time to time, after 

 consultation with the advisory committee authorized 

 under section 4025 of this title, appropriate rep- 

 resentatives of the pool formed or otherwise created 

 under section 4051 of this title, and appropriate 

 representatives of the insurance authorities of the 

 respective States, provide by regulation for general 

 terms and conditions of insurability which shall be 

 applicable to properties eligible for flood insurance 

 coverage under section 4012 of this title, including — 



(1) the types, classes, and locations of any such 

 properties which shall be eligible for flood insur- 

 ance; 



(2) the nature and limits of loss or dampge In 

 any areas (or subdivisions thereof* which may be 

 covered by such Insurance : 



(3) the classification, limitatton, and rejection 

 of any risks which may be advisable ; 



(4) appropriate minimum premiums: 



(5) appropriate loss-deductibles; and 



(6) any other terms and conditions relating to 

 Insurance coverage or exclusion which may t>e nec- 

 essary to carry out the purposes of this chapter. 



(b) In addition to any other terms and conditions 

 under subsection (a) of this section, such regula- 

 tions shall provide that — 



(1) any flood insurance coverage based on 

 chargeable premium rates under section 4015 of 

 this title which are less than the estimated pre- 

 mium rates under section 4014(a) (1) of this title 

 shall not exceed — 



(A) in the case of residential properties — 

 (i) $35,000 aggregate liability for any 



single-family dwelling, and $100,000 for any 

 residential structure containing more than 

 one dwelling unit. 



(11) $10,000 aggregate liability per dwelling 

 unit for any contents related to such unit, and 



(iii) in the States of Alaska and Hawaii, 

 and In the Virgin Islands and Guam, the limits 

 provided In clause d) of this sentence shall 

 be: $50,000 aggregate liability for any single- 

 family dwelling, and $150,000 for any residen- 

 tial structure containing more than one dwell- 

 ing unit; 



(B) in the case of business properties which 

 are owned or leased and operated by small busi- 

 ness concerns, an aggregate liability with respect 

 to any single structure, including any contents 

 thereof related to premises of small business oc- 

 cupants (as that term is deflned by the Secre- 

 tary), which shall be equal to (1) $100,000 plus 

 (ii) $100,000 multiplied by the number of such 

 occupants and shall be allocated among such 

 occupants 'or among the occupant or occupants 

 and the owner) under regulations prescribed by 

 the Secretary; except that the aggregate liabil- 

 ity for the structure itself may In no case 

 exceed $100,000; and 



