829 



sions of this chapter) at premium rates not exceed- 

 ing those which would be applicable under this sec- 

 tion If such flood protection system had been com- 

 pleted. The Secretaiy shall find that adequate 

 progress on the construction of a flood protection 

 system as required herein has been only if (1) 100 

 percent of the project cost of the system has been au- 

 thorized, (2) at least 60 percent of the project cost 

 of the system has been appropriated, (3) at least 

 50 percent of the project cost of the system has been 

 expended, and (4) the system is at least 50 percent 

 completed. (As amended Pub. L. 93-234, title I, § 109 

 Dec. 31, 1973, 87 Stat. 980: Pub. L. 93-383, title VIII, 

 § 816(b), Aug. 22, 1974, 88 Stat. 739.) 



Amendments 

 1974 — Subsec. (e). Pub. L. 93-383 added subsec. (e). 

 1973 — Subsec. (d) . Pub. L. 93-234 added subsec. (d) . 



§ 4015. Chargeable premium rates. 



(a) Establishment ; terms and conditions. 



On the basis of estimates made under section 4014 

 of this title, and such other information as may be 

 necessary, the Secretary shall from time to time, 

 after consultation with the advisory committee au- 

 thorized under section 4025 of this title, appropriate 

 representatives of the pool formed or otherwise 

 created under section 4051 of this title, and appro- 

 priate representatives of the insurance authorities 

 of the respective States, prescribe by regulation — 



( 1 ) chargeable premium rates for any types and 

 classes of properties for which insurance coverage 

 shall be available under section 4012 of this 

 title <at less than the estimated risk premium 

 rates under section 4014(a) (1) of this title, where 

 necessary), and 



(2) the terms and conditions under which, and 

 the areas (including subdivisions thereof) within 

 which, such rates shall apply. 



(b) Considerations for rates. 



Such rates shall, insofar as practicable, be — 



(1) based on a consideration of the respective 

 risks involved, including differences in risks due to 

 land use measures, flood-proofing, flood forecast- 

 ing, and similar measures. 



(2) adequate, on the basis of accepted actuarial 

 principles, to provide reserves for anticipated 

 losses, or, if less than such amount, consistent with 

 the objective of making flood insurance available 

 where necessary at reasonable rates so as to en- 

 courage prospective insureds to purchase 'such in- 

 surance and with the purposes of this chapter, 

 and 



(3) stated so as to reflect the basis for such 

 rates. Including the differences (if any) between 

 the estimated risk premium rates under section 

 4014(a)(1) of this title and the estimated rates 

 under section 4014(a) (2) of this title. 



(c) Rate with respect to property the construction or 

 substantial improvement of which has been started 

 after December 31, 1974, or effective date of initial 

 rate map published for area in which property is 

 located, whiche'. er is later. 



Notwithstanding any other provision of this chap- 

 ter, the chargeable rate with respect to any property, 



the construction or substantial improvements of 

 which the Secretary determines has been started af- 

 ter December 31, 1974, or the effective date of the 

 initial rate map published by the Secretary under 

 paragraph (2) of section 4101 of this title for the area 

 in which such property is located, whichever Is later, 

 shall not be less than the applicable estimated risk 

 premium rate for such area (or subdivision thereof) 

 under section 4014(a) (1) of this title. 



(d) Payment of certain sums to Secretary; deposits 

 in Fund. 

 In the event any chargeable premium rate pre- 

 scribed under this section — 



(1) is a rate which is not less than the appli- 

 cable estimated risk premium rate under section . 

 4014(a) (1) of this title, and 



(2) Includes any amount for administrative ex- 

 penses of carrying out the flood inusrance program 

 which have been estimated under clause (li) of 

 section 4014(a) (1) (B) of this title, 



a sum equal to such amount shall be paid to the 

 Secretary, and he shall deposit such sum in the Na- 

 tional Flood Insurance Fund established under sec- 

 tion 4017 of this title. (Pub. L. 90-448, Utle xm. 

 S 1308. Aug. 1, 1968, 82 Stat. 576.) 



§ 4016. Financing provisions; issuance of notes or other 

 obligations; limitation; report to Congressional 

 Committees; deposits in Fund. 

 (a) All authority which was vested In the Hous- 

 ing and Home Finance Administrator by virtue of 

 section 2414(e) of this title (pertaining to the issue 

 of notes or other obligations to the Secretary of the 

 Treasury), as amended by subsections (a) and (b) 

 of section 1303 of this Act. shall be available to the 

 Secretary for the pm-pose of can-ying out the flood 

 insurance program under this chaptar; except that 

 the total amount of notes and obligations which may 

 be issued by the Secretary p'lrsuant to such author- 

 ity (1) without the approval of the President, may 

 not exceed $500,000,000, and (2) with the approval 

 of the President, may not exceed $1,000,000,000. The 

 Secretary shall report to the Committee on Banking 

 and Currency of the House of Representatives and 

 the Committee on Banking, Housing and Urban Af- 

 fairs of the Senate at any time when he requests the 

 approval of the President In accordance with the 

 preceding sentence. 



(b) Any funds borrowed by the Secretary under 

 this authority shall, from time to time, be deposited 

 In the National Flood Insurance Fund establislied 

 under section 4017 of this title. (Pub. L. 90-448, title 

 xm, § 1309, Aug. 1, 1968, 82 Stat. 577.) 



Amendments 

 1973 — Subsec. (a) . Pub. L. 93-234 substituted provi- 

 sions respecting Issuance of notes and obligation for 

 $500,000,000 without approval of President and for $1,000.- 

 000,000 with approval of President, for former provi- 

 sion prescribing a. $250,000,000 limitation, deleted provl- 

 slon rescinding authority of Secretary to Issue notes and 



§4017. National Flood Insurance Fund, 

 (a) Establishment; availability. 

 To carry out the flood insurance program au- 



