830 



thorlzed by this chapter, the Secretary is authorized 

 to establish in the Treasury of the United States a 

 National Flood Insurance Fund (hereinafter re- 

 ferred to as the "fund") which shall be available, 

 without fiscal year limitation — 



(1) for making such payments as may, from 

 time to time, be required under section 4054 of 

 this title; 



(2) to pay reinsurance claims under the excess 

 loss reinsurance coverage provided under section 

 4055of this title; 



(3) to repay to the Secretary of the Treasury 

 such sums as may be borrowed from him (together 

 with interest) in accordance with the authority 

 provided in section 4016 of this title; and 



(4) to pay such administrative expenses (or por- 

 tion of such expenses) of carrying cut the flocd 

 insurance program as he may deem necessary; 

 and 



(5) for the purposes specified in subsection^ (d) 

 of this section under the conditions provided 

 therein. 



(b) Credits to Fund. 



The fund shall be credited with — 



(1) such funds borrowed in accordance with the 

 authority provided in section 4016 of this title as 

 may from time to time be deposited in the fund; 



(2) premiums, fees, or other charges which may 

 be paid or collected in connection with the ex- 

 cess loss reinsurance coverage provided under sec- 

 tion 4055 of this title; 



(3) such amounts as may be advanced to the 

 fund from appropriations in order to maintain 

 the fund in an operative condition adequate to 

 meet its liabilities; 



(4) Interest which may be earned on invest- 

 ments of the fund pursuant to subsection (c) of 

 th's section; 



(5; such sums as are required to be paid to the 

 Secretary under section <015(d) of this title; 

 and 



(6) receipts from any other operations under 

 this chapter (including pre.niums under the con- 

 ditions specified in subsection (d) of this section, 

 and .salvage proceeds, if any, resulting from re- 

 insurance coverage) . 



(c) Investment of moneys in obligations issued or 

 guarantied by United States. 



If, after- 

 CD all outstanding obligations of the fund have 

 been liquidated, and 



(2) any outstanding amoimts which may have 

 been advanced to the fund from appropriations 

 authorized under .section 4127(a)(2)(B) of this 

 title have been credited to the appropriation from 

 which advanced, with interest accrued at the rate 

 prescribed under section 2414(e) of tliis title, as 

 in effect immediately prior to the enactment of this 

 chapter, 

 the Secretary determines that the moneys of the 

 fund are in excess of current needs, he may request 

 the Investment of such amounts as he deems advis- 

 able by the Secretary of the Treasury In obligations 



issued or guaranteed by the United States. 



(d) Avail.ibility of Fund if operation of program is 

 carried out through facilities of Federal 

 Government. 



In the event the Secretary makes a determina- 

 tion in accordance with the provisions of section 4071 

 of this title that operation of the flood Insurance 

 program, in whole or In part, should be carried out 

 through the facilities of the Federal Government, 

 the fund shall be available for all purposes Incident 

 thereto. Including — 



(1) cost incurred In the adjustment and pay- 

 ment of any claims for losses, and 



(2) payment of applicable operating costs set 

 forth In the schedules prescribed under section 

 4018 of this title, 



for so long as the program is so carried out, and in 

 such event any premiiuns paid shall be deposited by 

 the Secretary to the credit of the fund. 



(e) Annual budget. 



An annual business-type budget for the fund shall 

 be prepared, transmitted to the Congress, consid- 

 ered, and enacted in the manner prescribed by law 

 (sections 847, 848. and 849 of Title 31) for wholly- 

 owned (government corp>orations. (Pub. L. 90-448, 

 title Xin, § 1310, Aug. 1, 1968, 82 Stat. 577.) 



§4018. Operating costs and allowances; definitions. 



(a) The Secretary shall from time to time nego- 

 tiate with appropriate representatives of the Insur- 

 ance industry for the purpose of establishing — 



(1) a current schedule of operating costs ap- 

 plicable both to risk-sharing Insurance companies 

 and other insurers and to insurance companies 

 and other Insurers, insurance agents and brokers, 

 and Insurance adjustment organizations partici- 

 pating on other than a risk-sharing basis, and 



(2) a current schedule of operating allowances 

 applicable to risk-sharing Insurance companies 

 and other Insurers, 



which may be payable in accordance with the pro- 

 visions of subchapter 11 of this chapter, and such 

 schedules shall from time to time be prescribed in 

 regulations. 



(b) For purposes of subsection (a) of this sec- 

 tion — 



(1) the term "operating costs" shall (without 

 limiting such term) Include — 



(A) expense reimbursements covering the di- 

 rect, actual, and necessary expenses incurred In 

 connection with selling and servicing flood in- 

 surance coverage; 



(B) reasonable compensation payable for 

 selling and servicing flood insurance coverage, 

 or commissions or service fees paid to pro- 

 ducers; 



(C) loss adjustment expenses; and 



<D) other direct, actual, and necessary ex- 

 penses which the Secretary finds are incurred 

 in connection with selling or servicing flood in- 

 surance coverage; and 



(2) the term "operating allowances" shall 

 (without limiting such term) include amounts for 



