5534 Federal Register / Vol. 62, No. 25 / Thursday, February 6, 1997 / Rules and Regulations

borrower within a reasonable time

before the completion of the transaction,

and to the servicer as promptly as

practicable after the Secretary provides

notice to the borrower and in any event

no later than the time the Secretary

provides other similar notices to the

servicer concerning hazard insurance

and taxes. Notice to the servicer may be

made electronically or may take the

form of a copy of the notice to the

borrower.

(d) Record of receipt. The Secretary

shall retain a record of the receipt of the

notices by the borrower and the servicer

for the period of time the Secretary

owns the loan.

(e) Alternate method of notice. Instead

of providing the notice to the borrower

required by paragraph (a) of this section,

the Secretary may obtain satisfactory

written assurance from a seller or lessor

that, within a reasonable time before the

completion of the sale or lease

transaction, the seller or lessor has

provided such notice to the purchaser or

lessee. The Secretary shall retain a

record of the written assurance from the

seller or lessor for the period of time the

Secretary owns the loan.

(f) Use of prescribed form of notice.

The Secretary will be considered to be

in compliance with the requirement for

notice to the borrower of this section by

providing written notice to the borrower

containing the language presented in

appendix A to this part within a

reasonable time before the completion

of the transaction. The notice presented

in appendix A to this part satisfies the

borrower notice requirements of the Act.

(Authority: 42 U.S.C. 4104a)

§ 36.4709 Notice of servicer’s identity.

(a) Notice requirement. When the

Secretary makes, increases, extends,

renews, sells, or transfers a loan secured

by a building or mobile home located or

to be located in a special flood hazard

area, the Secretary shall notify the

Director of FEMA (or the Director’s

designee) in writing of the identity of

the servicer of the loan. The Director of

FEMA has designated the insurance

provider to receive the Secretary’s

notice of the servicer’s identity. This

notice may be provided electronically if

electronic transmission is satisfactory to

the Director of FEMA’s designee.

(b) Transfer of servicing rights. The

Secretary shall notify the Director of

FEMA (or the Director’s designee) of any

change in the servicer of a loan

described in paragraph (a) of this

section within 60 days after the effective

date of the change. This notice may be

provided electronically if electronic

transmission is satisfactory to the

Director of FEMA’s designee. Upon any

change in the servicing of a loan

described in paragraph (a) of this

section, the duty to provide notice

under this paragraph (b) shall transfer to

the transferee servicer.

(Authority: 42 U.S.C. 4104a)

9. Appendix A to part 36 is added to

read as follows:

Appendix A to Part 36—Sample Form

of Notice of Special Flood Hazards and

Availability of Federal Disaster Relief

Assistance

We are giving you this notice to inform you

that:

The building or mobile home securing the

loan for which you have applied is or will

be located in an area with special flood

hazards. The area has been identified by the

Director of the Federal Emergency

Management Agency (FEMA) as a special

flood hazard area using FEMA’s Flood

Insurance Rate Map or the Flood Hazard

Boundary Map for the following community:

llll. This area has at least a one percent

(1%) chance of a flood equal to or exceeding

the base flood elevation (a 100-year flood) in

any given year. During the life of a 30-year

mortgage loan, the risk of a 100-year flood in

a special flood hazard area is 26 percent

(26%).

Federal law allows a lender and borrower

jointly to request the Director of FEMA to

review the determination of whether the

property securing the loan is located in a

special flood hazard area. If you would like

to make such a request, please contact us for

further information.

ll The community in which the property

securing the loan is located participates in

the National Flood Insurance Program

(NFIP). Federal law will not allow us to make

you the loan that you have applied for if you

do not purchase flood insurance. The flood

insurance must be maintained for the life of

the loan. If you fail to purchase or renew

flood insurance on the property, Federal law

authorizes and requires us to purchase the

flood insurance for you at your expense.

• Flood insurance coverage under the

NFIP may be purchased through an insurance

agent who will obtain the policy either

directly through the NFIP or through an

insurance company that participates in the

NFIP. Flood insurance also may be available

from private insurers that do not participate

in the NFIP.

• At a minimum, flood insurance

purchased must cover the lesser of:

(1) the outstanding principal balance of the

loan; or

(2) the maximum amount of coverage

allowed for the type of property under the

NFIP.

Flood insurance coverage under the NFIP

is limited to the overall value of the property

securing the loan minus the value of the land

on which the property is located.

• Federal disaster relief assistance (usually

in the form of a low-interest loan) may be

available for damages incurred in excess of

your flood insurance if your community’s

participation in the NFIP is in accordance

with NFIP requirements.

ll Flood insurance coverage under the

NFIP is not available for the property

securing the loan because the community in

which the property is located does not

participate in the NFIP. In addition, if the

non-participating community has been

identified for at least one year as containing

a special flood hazard area, properties

located in the community will not be eligible

for Federal disaster relief assistance in the

event of a Federally-declared flood disaster.

(Authority: 42 U.S.C. 4104a)

[FR Doc. 97–2902 Filed 2–5–97; 8:45 am]

BILLING CODE 8320–01–P

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 64

[Docket No. FEMA–7657]

List of Communities Eligible for the

Sale of Flood Insurance

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Final rule.

SUMMARY: This rule identifies

communities participating in the

National Flood Insurance Program

(NFIP). These communities have

applied to the program and have agreed

to enact certain floodplain management

measures. The communities’

participation in the program authorizes

the sale of flood insurance to owners of

property located in the communities

listed.

EFFECTIVE DATES: The dates listed in the

third column of the table.

ADDRESSES: Flood insurance policies for

property located in the communities

listed can be obtained from any licensed

property insurance agent or broker

serving the eligible community, or from

the NFIP at: Post Office Box 6464,

Rockville, MD 20849, (800) 638–6620.

FOR FURTHER INFORMATION CONTACT:

Robert F. Shea, Jr., Division Director,

Program Implementation Division,

Mitigation Directorate, 500 C Street SW.,

room 417, Washington, DC 20472, (202)

646–3619.

SUPPLEMENTARY INFORMATION: The NFIP

enables property owners to purchase

flood insurance which is generally not

otherwise available. In return,

communities agree to adopt and

administer local floodplain management

measures aimed at protecting lives and

new construction from future flooding.

Since the communities on the attached

list have recently entered the NFIP,

subsidized flood insurance is now

available for property in the community.

In addition, the Executive Associate

Director of the Federal Emergency
Federal Register / Vol. 62, No. 25 / Thursday, February 6, 1997 / Rules and Regulations 5535

Management Agency has identified the

special flood hazard areas in some of

these communities by publishing a

Flood Hazard Boundary Map (FHBM) or

Flood Insurance Rate Map (FIRM). The

date of the flood map, if one has been

published, is indicated in the fourth

column of the table. In the communities

listed where a flood map has been

published, Section 102 of the Flood

Disaster Protection Act of 1973, as

amended, 42 U.S.C. 4012(a), requires

the purchase of flood insurance as a

condition of Federal or federally related

financial assistance for acquisition or

construction of buildings in the special

flood hazard areas shown on the map.

The Executive Associate Director

finds that the delayed effective dates

would be contrary to the public interest.

The Executive Associate Director also

finds that notice and public procedure

under 5 U.S.C. 553(b) are impracticable

and unnecessary.

National Environmental Policy Act

This rule is categorically excluded

from the requirements of 44 CFR Part

10, Environmental Considerations. No

environmental impact assessment has

been prepared.

Regulatory Flexibility Act

The Executive Associate Director

certifies that this rule will not have a

significant economic impact on a

substantial number of small entities in

accordance with the Regulatory

Flexibility Act, 5 U. S. C. 601 et seq.,

because the rule creates no additional

burden, but lists those communities

eligible for the sale of flood insurance.

Regulatory Classification

This final rule is not a significant

regulatory action under the criteria of

section 3(f) of Executive Order 12866 of

September 30, 1993, Regulatory

Planning and Review, 58 FR 51735.

Paperwork Reduction Act

This rule does not involve any

collection of information for purposes of

the Paperwork Reduction Act, 44 U.S.C.

3501 et seq.

Executive Order 12612, Federalism

This rule involves no policies that

have federalism implications under

Executive Order 12612, Federalism,

October 26, 1987, 3 CFR, 1987 Comp.,

p. 252.

Executive Order 12778, Civil Justice

Reform

This rule meets the applicable

standards of section 2(b)(2) of Executive

Order 12778, October 25, 1991, 56 FR

55195, 3 CFR, 1991 Comp., p. 309.

List of Subjects in 44 CFR Part 64

Flood insurance, Floodplains.

Accordingly, 44 CFR part 64 is

amended as follows:

PART 64—[AMENDED]

1. The authority citation for Part 64

continues to read as follows:

Authority: 42 U.S.C. 4001 et seq.,

Reorganization Plan No. 3 of 1978, 3 CFR,

1978 Comp., p. 329; E.O. 12127, 44 FR 19367,

3 CFR, 1979 Comp., p. 376.

§ 64.6 [Amended]

2. The tables published under the

authority of § 64.6 are amended as

follows:

State/location Community

No. Effective date of eligibility Current effectivemap date

NEW ELIGIBLES—Emergency Program

Missouri: Diehlstadt, village of, Scott County ................ 290925 Dec. 4, 1996.

Georgia: Dallas, city of, Paulding County ...................... 130372 Dec. 5, 1996.

North Carolina: Burgaw, town of, Pender County ......... 370483 ......do.

Michigan:

Crockery, township of, Ottawa County ................... 260981 Dec. 17, 1996.

Sylvan, township of, Osceola County ..................... 260982 ......do.

Greenwood, township of, Wexford County ............. 260947 Dec. 20, 1996.

NEW ELIGIBLES—Regular Program

Florida: Fort Myers Beach, town of, Lee County 1 ........ 120673 Dec. 17, 1996.

REINSTATEMENTS

Minnesota: Koochiching County, unincorporated areas 270233 July 1, 1974, Emerg; June 1, 1988, Reg; Sept. 26,

1996, Susp; Dec. 4, 1996, Rein.

Sept. 29, 1996.

Pennsylvania: West View, borough of, Allegheny

County.

420086 April 26, 1974, Emerg; June 30, 1976, Reg; Oct. 4,

1995, Susp; Dec. 4, 1996, Rein.

Oct. 4, 1995.

Pennsylvania:

Penn, township of, Chester County ........................ 421487 October 15, 1975, Emerg; Dec. 17, 1982, Reg; Nov.

20, 1996, Susp; Dec. 9, 1996, Rein.

Nov. 20, 1996.

Parkesburgh, borough of, Chester County ............. 422277 June 11, 1975, Emerg; June 1, 1983, Reg; Nov. 20,

1996, Susp; Dec. 31, 1996, Rein.

July 16, 1996.

1The Town of Fort Myers Beach has been participating in the NFIP as part of the unincorporated areas of Lee County. The Town has adopted

Lee County’s (125120) Flood Insurance Study and accompanying Flood Insurance Rate Map (FIRM) dated 6/15/84 and any revisions thereto, for

flood insurance and floodplain management purposes.

Code for reading third column: Emerg.—Emergency; Reg.—Regular; Rein.—Reinstatement; Susp.—Suspension; With.—Withdrawn.

(Catalog of Federal Domestic Assistance No.

83.100, ‘‘Flood Insurance’’)

Issued: January 28, 1997.

Richard W. Krimm,

Executive Associate Director, Mitigation

Directorate.

[FR Doc. 97–2966 Filed 2–5–97; 8:45 am]

BILLING CODE 6718–05–P

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Parts 43 and 64

[CC Docket No. 90–337, FCC 96–459]

Regulation of International Accounting

Rates

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission adopted a

Report and Order that will permit

flexibility in its accounting rate polices.

The Commission concluded that U.S.

carriers should be permitted to negotiate

alternative settlement payment

arrangements that deviate from the

International Settlements Policy (ISP)

with foreign correspondents in