For borrowers required to use escrow accounts for the payment of real estate taxes and insurance, the flood insurance premium will be paid when due from funds contained in the escrow account. If the escrow account contains insufficient funds to pay the flood insurance premium when due, the County Supervisor will request the borrower to pay an amount equal to the difference between the premium due and the escrow balance in a lump sum within 30 days after notification. If the borrower fails to remit the amount requested, the amount will be advanced and charged to the borrower's account as a recoverable cost. The amortization period for an advance due to an escrow shortage will be one year. Amortization of the charge will be handled in accordance with7 CFR part 3550. When a borrower has more than one loan secured by the real estate on which the flood insurance premium is being paid, the advance will be charged to the initial or lowest numbered loan. [56 FR 6946, Feb. 21, 1991, as amended at 67 FR 78326, Dec. 24, 2002]
Sec. Exhibit A to Subpart B of Part 1806--Coverage and Premium Rates
1. The following table sets forth the limits of coverage available under the program: ------------------------------------------------------------------------
Structure coverage Contents of coverage
---------------------- \4\
Type of structure ---------------------
Subsidized Total Total
\3\ Subsidized \3\------------------------------------------------------------------------Single family, residential $35,000 $70,000 $10,000 $20,000
\1\........................All other, residential \1\.. 100,000 200,000 10,000 20,000All nonresidential \2\...... 100,000 200,000 100,000 200,000------------------------------------------------------------------------\1\ For Alaska, Hawaii, and the Virgin Islands, the following limits of
coverage apply: Structure coverage for one family residential is
$50,000 subsidized and $100,000 total coverage, and structure coverage
for other residential is $150,000 subsidized and $300,000 total
coverage.\2\ Includes hotels and motels with normal occupancy of less than 6
months.\3\ Coverage in amounts exceeding the subsidized limits is available
only after an actuarial cost has been established and flood insurance
rate may be issued.\4\ Contents of a building must be insured separately from the building.
However, coverage is applicable to contents only while in an enclosed
building. Therefore, coverage cannot be written on the contents of a
three-walled machinery shed or a similar type open building.
2. The following table sets forth the applicable premium rates: ------------------------------------------------------------------------
Rates per $100 of
coverage (subsidized
Type of structure only)
-----------------------
Structures Contents------------------------------------------------------------------------All residential................................. \1\ $0.25 $0.35All nonresidential.............................. \1\ .40 .75------------------------------------------------------------------------\1\ Actuarial (nonsubsidized) rates are applicable to any structure, the
construction or substantial improvement of which started after Dec.
31, 1974, or the date on which the initial rate map was issued,
whichever is later, in identified areas having special flood or
mudslide hazards.
Sec. Exhibit B to Subpart B of Part 1806--Servicing Company
The servicing company office to be contacted for information relative to the availability of coverage under the national flood insurance program, flood hazard boundary maps, insurance rate tables, and related material.E.D.S. Federal Corporation, National Flood Insurance, P.O. Box 34294, Bethesda, Md. 20034, phone toll-free 800-638-6620; commercial phone 301-898-5900. (7 U.S.C. 1989; 42 U.S.C. 1480; 42 U.S.C. 2942; 5 U.S.C. 301; delegation of authority by the Secretary of Agriculture, 7 CFR 2.23; delegation of authority by the Assistant Secretary for Rural Development, 7 CFR 2.70) [43 FR 18538, May 1, 1978]
PARTS 1807_1809 [RESERVED]