Page:United States Statutes at Large Volume 108 Part 3.djvu/511

 PUBLIC LAW 103-325—SEPT. 23, 1994 108 STAT. 2263 (h) or (i) of section 1360 that affects the area in which the improved real estate or mobile home securing the loan is located or that, in the determination of the Director, may reasonably be considered to require a determination under this subsection; or "(C) results in the purchase of flood insurance coverage pursuant to the requirement under subsection (e)(2). " (2) PURCHASER OR TRANSFEREE FEE.— The purchaser or transferee of such a loan may be charged the fee in the case ofsale or transfer of the loan." SEC. 527. NOTICE REQUIREMENTS. Section 1364 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104a) is amended to read as follows: NOTICE REQUIREMENTS "SEC. 1364. (a) NOTIFICATION OF SPECIAL FLOOD HAZARDS. — "(1) REGULATED LENDING INSTITUTIONS.—Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council) shall by regulation require regulated lending institutions, as a condition of making, increasing, extending, or renewing any loan secured by improved real estate or a mobile home that the regulated lending institution determines is located or is to be located in an area that has been identified by the Director under this title or the Flood Disaster Protection Act of 1973 as an area having special flood hazards, to notify the purchaser or lessee (or obtain satisfactory assurances that the seller or lessor has notified the purchaser or lessee) and the servicer of the loan of such special flood hazards, in writing, a reasonable period in advance of the signing of the purchase agreement, lease, or other documents involved in the transaction. The regulations shall also require that the regulated lending institution retain a record of the receipt of the notices by the purchaser or lessee and the servicer. "(2) FEDERAL AGENCY LENDERS.— Each Federal agency lender shall by regulation require notification in the manner provided under paragraph (1) with respect to any loan that is made by the Federal agency lender and secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Director under this title or the Flood Disaster Protection Act of 1973 as an area having special flood hazards. Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1). "(3) CONTENTS OF NOTICE.— Written notification required under this subsection shall include— "(A) a warning, in a form to be established by the Director, stating that the building on the improved real estate securing the loan is located, or the mobile home securing the loan is or is to be located, in an area having special flood hazards; "(B) a description of the flood insurance purchase requirements under section 102(b) of the Flood Disaster Protection Act of 1973; Records. Regulations.

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