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•lw< * «»•#•%» - ••• ^ <br />16. <br />17. <br />18. <br />- u - <br />lU. Q. What is meant by "Federal or federally-related financial <br />assistance"? <br />A.The term includes direct Federal financial assistance such <br />as grants, SBA and TaSA loans, VA and fSA mortgage loans, <br />and conventional construction and mortgage loans from <br />federally Insured, regulated or supervised lending <br />institutions, e.g., banks insured by FDIC, savings and loan <br />institutions insured by FSLIC or regulated by the Federal <br />Home Loan Baxik Board, credit unions insured by the National <br />Credit Union Administration, banks regulated by the <br />, Comptroller of the Currency or the Federal Reserve Board. <br />1^. Q. When is flood insurance required by law? <br />A. <br />Q. <br />A. <br />Q. <br />A. <br />Q. <br />A. <br />flood insurance must be purchased as a condition of <br />obtaining Federal financial assistance for the construction <br />or acquisition of buildings in the identified special flood <br />hazard areas of communities where flood insurance is <br />available. <br />Who determines whether properties require flood insurance? <br />When the financial assistance is directly from a Federal <br />agency, the agency Itself must make the determination. In <br />the case of lending institutions covered by the Act, the <br />lender or his authorized representative must make the <br />determination. This responsibility cannot be discharged <br />by obtaining a self-certification from the borrower. <br />How much flood insurance is required by law? <br />Usually, up to the amount of the financial assistaxice or <br />the max inn UP amount of insxirance available under the <br />program, whichever is less. <br />What insurance benefits are available under the program? <br />When a community initially qualifies for the sale of flood <br />insurance under the Bnergency Program, limited amounts of <br />coverage are available at subsidized rates for virtually <br />every building as well as the contents regardless of the <br />risk. After FIA*s detailed Flood Insurance Rate Map has <br />been prepared, and the community enters the Regular <br />Program, the available limits of coverage are double those <br />available under the Emergency Program. Hie second layer . <br />of coverage at actuarial (non-subsidized) rates is <br />available together with the subsidized first layer of <br />- more -