42 U.S.C. 4002(a)(6)

§ 4002

TITLE 42—THE PUBLIC HEALTH AND WELFARE

4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2004’.’’
Pub. L. 108–3, § 1, Jan. 13, 2003, 117 Stat. 7, provided
that: ‘‘This Act [amending sections 4016, 4026, 4056, and
4127 of this title and enacting provisions set out as a
note under section 4016 of this title] may be cited as the
‘National Flood Insurance Program Reauthorization
Act of 2003’.’’
SHORT TITLE OF 1994 AMENDMENT
Section 501 of title V of Pub. L. 103–325 provided that:
‘‘This title [enacting sections 4104b to 4104d and 5154a of
this title, amending this section, sections 4003, 4011,
4012a, 4013, 4015, 4017, 4022, 4026, 4027, 4029, 4056, 4081, 4101,
4104a, 4106, 4121, and 5154 of this title, and sections 1784,
1820, 3305, and 4521 of Title 12, Banks and Banking, repealing section 4103 of this title, enacting provisions
set out as notes under this section and sections 4011,
4013, 4014, 4101 to 4103, and 4104c of this title, and repealing provisions set out as a note under section 4015 of
this title] may be cited as the ‘National Flood Insurance Reform Act of 1994’.’’
SHORT TITLE OF 1973 AMENDMENT
Pub. L. 93–234, § 1, Dec. 31, 1973, 87 Stat. 975, provided:
‘‘That this Act [enacting sections 4002, 4003, 4012a, 4104,
4105 to 4107, and 4128 of this title, amending this section, sections 4013 to 4016, 4026, 4054, 4056, 4101, and 4121
of this title, and sections 24 and 1709–1 of Title 12,
Banks and Banking, and repealing section 4021 of this
title] may be cited as the ‘Flood Disaster Protection
Act of 1973’.’’
SHORT TITLE
Section 1301 of title XIII of Pub. L. 90–448 provided
that: ‘‘This title [enacting this chapter, amending section 2414 of this title, repealing sections 2401 to 2413 and
2415 to 2421 of this title, and enacting provisions set out
as a note under this section] may be cited as the ‘National Flood Insurance Act of 1968’.’’
REGULATIONS
Pub. L. 103–325, title V, § 583, Sept. 23, 1994, 108 Stat.
2287, as amended by Pub. L. 109–295, title VI, § 612(c),
Oct. 4, 2006, 120 Stat. 1410, provided that: ‘‘The Administrator of the Federal Emergency Management Agency
and any appropriate Federal agency may each issue
any regulations necessary to carry out the applicable
provisions of this title [see Short Title of 1994 Amendment note above] and the applicable amendments made
by this title.’’
[For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of
the Federal Emergency Management Agency, including
the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal
Emergency Management Agency, see section 315(a)(1)
of Title 6, Domestic Security.]
[For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto,
to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
sections 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set
out as a note under section 542 of Title 6.]
EVALUATION OF EROSION HAZARDS
Pub. L. 103–325, title V, § 577(a)–(g), Sept. 23, 1994, 108
Stat. 2281–2283, required the Director of the Federal
Emergency Management Agency to submit a report no
later than two years after Sept. 23, 1994, evaluating erosion hazards and estimating the impact of erosion on
flood insurance claims.

Page 5150

RELATION OF TITLE V OF PUB. L. 103–325 TO STATE
AND LOCAL LAWS
Section 584 of title V of Pub. L. 103–325 provided that:
‘‘This title [see Short Title of 1994 Amendment note
above] and the amendments made by this title may not
be construed to preempt, annul, alter, amend, or exempt any person from compliance with any law, ordinance, or regulation of any State or local government
with respect to land use, management, or control.’’
FLOODPLAIN MANAGEMENT
For provisions relating to the reduction of the risk of
flood loss, the minimization of the impact of floods on
human safety, health and welfare, and the management
of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42
F.R. 26951, set out as a note under section 4321 of this
title.

§ 4002. Additional Congressional findings and
declaration of purpose
(a) The Congress finds that—
(1) annual losses throughout the Nation from
floods and mudslides are increasing at an
alarming rate, largely as a result of the accelerating development of, and concentration of
population in, areas of flood and mudslide hazards;
(2) the availability of Federal loans, grants,
guaranties, insurance, and other forms of financial assistance are often determining factors in the utilization of land and the location
and construction of public and of private industrial, commercial, and residential facilities;
(3) property acquired or constructed with
grants or other Federal assistance may be exposed to risk of loss through floods, thus frustrating the purpose for which such assistance
was extended;
(4) Federal instrumentalities insure or
otherwise provide financial protection to
banking and credit institutions whose assets
include a substantial number of mortgage
loans and other indebtedness secured by property exposed to loss and damage from floods
and mudslides;
(5) the Nation cannot afford the tragic losses
of life caused annually by flood occurrences,
nor the increasing losses of property suffered
by flood victims, most of whom are still inadequately compensated despite the provision of
costly disaster relief benefits; and
(6) it is in the public interest for persons already living in flood-prone areas to have both
an opportunity to purchase flood insurance
and access to more adequate limits of coverage, so that they will be indemnified, for
their losses in the event of future flood disasters.
(b) The purpose of this Act, therefore, is to—
(1) substantially increase the limits of coverage authorized under the national flood insurance program;
(2) provide for the expeditious identification
of, and the dissemination of information concerning, flood-prone areas;
(3) require States or local communities, as a
condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plan ordinances with effective enforcement provisions

Page 5151

TITLE 42—THE PUBLIC HEALTH AND WELFARE

consistent with Federal standards to reduce or
avoid future flood losses; and
(4) require the purchase of flood insurance
by property owners who are being assisted by
Federal programs or by federally supervised,
regulated, or insured agencies or institutions
in the acquisition or improvement of land or
facilities located or to be located in identified
areas having special flood hazards.
(Pub. L. 93–234, § 2, Dec. 31, 1973, 87 Stat. 975.)
REFERENCES IN TEXT
This Act, referred to in subsec. (b), means Pub. L.
93–234, Dec. 31, 1973, 87 Stat. 975, as amended, known as
the Flood Disaster Protection Act of 1973. For complete
classification of this Act to the Code, see Short Title of
1973 Amendment note set out under section 4001 of this
title and Tables.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.

§ 4003. Additional definitions
(a) As used in this Act, unless the context
otherwise requires, the term—
(1) ‘‘community’’ means a State or a political subdivision thereof which has zoning and
building code jurisdiction over a particular
area having special flood hazards;
(2) ‘‘Federal agency’’ means any department,
agency, corporation, or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation;
(3) ‘‘financial assistance’’ means any form of
loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or
grant, or any other form of direct or indirect
Federal assistance, other than general or special revenue sharing or formula grants made
to States;
(4) ‘‘financial assistance for acquisition or
construction purposes’’ means any form of financial assistance which is intended in whole
or in part for the acquisition, construction, reconstruction, repair, or improvement of any
publicly or privately owned building or mobile
home, and for any machinery, equipment, fixtures, and furnishings contained or to be contained therein, and shall include the purchase
or subsidization of mortgages or mortgage
loans but shall exclude assistance pursuant to
the Disaster Relief and Emergency Assistance
Act [42 U.S.C. 5121 et seq.] (other than assistance under such Act in connection with a
flood);
(5) ‘‘Federal entity for lending regulation’’
means the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, and the
Farm Credit Administration, and with respect
to a particular regulated lending institution
means the entity primarily responsible for the
supervision of the institution;
(6) ‘‘Director’’ means the Administrator of
the Federal Emergency Management Agency;

§ 4003

(7) ‘‘Federal agency lender’’ means a Federal
agency that makes direct loans secured by improved real estate or a mobile home, to the extent such agency acts in such capacity;
(8) the term ‘‘improved real estate’’ means
real estate upon which a building is located;
(9) ‘‘lender’’ means a regulated lending institution or Federal agency lender;
(10) ‘‘regulated lending institution’’ means
any bank, savings and loan association, credit
union, farm credit bank, Federal land bank association, production credit association, or
similar institution subject to the supervision
of a Federal entity for lending regulation; and
(11) ‘‘servicer’’ means the person responsible
for receiving any scheduled periodic payments
from a borrower pursuant to the terms of a
loan, including amounts for taxes, insurance
premiums, and other charges with respect to
the property securing the loan, and making
the payments of principal and interest and
such other payments with respect to the
amounts received from the borrower as may be
required pursuant to the terms of the loan.
(b) The Director is authorized to define or redefine, by rules and regulations, any scientific
or technical term used in this Act, insofar as
such definition is not inconsistent with the purposes of this Act.
(Pub. L. 93–234, § 3, Dec. 31, 1973, 87 Stat. 976; Pub.
L. 95–128, title VII, § 703(b), Oct. 12, 1977, 91 Stat.
1145; Pub. L. 98–181, title IV, § 451(e), Nov. 30,
1983, 97 Stat. 1229; Pub. L. 100–707, title I, § 109(t),
Nov. 23, 1988, 102 Stat. 4710; Pub. L. 103–325, title
V, § 511(a), Sept. 23, 1994, 108 Stat. 2255; Pub. L.
109–295, title VI, § 612(c), Oct. 4, 2006, 120 Stat.
1410; Pub. L. 111–203, title III, § 368, July 21, 2010,
124 Stat. 1557.)
AMENDMENT OF SUBSECTION (a)(5)
Pub. L. 111–203, title III, §§ 351, 368, July 21,
2010, 124 Stat. 1546, 1557, provided that, effective on the transfer date, subsection (a)(5) of
this section is amended by striking out ‘‘, the
Office of Thrift Supervision’’. See Effective
Date of 2010 Amendment note below.
REFERENCES IN TEXT
This Act, referred to in text, means Pub. L. 93–234,
Dec. 31, 1973, 87 Stat. 975, known as the Flood Disaster
Protection Act of 1973. For complete classification of
this Act to the Code, see Short Title of 1973 Amendment note set out under section 4001 of this title and
Tables.
The Disaster Relief and Emergency Assistance Act,
referred to in subsec. (a)(4), is Pub. L. 93–288, May 22,
1974, 88 Stat. 143, known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which is
classified principally to chapter 68 (§ 5121 et seq.) of this
title. For complete classification of this Act to the
Code, see Short Title note set out under section 5121 of
this title and Tables.
CODIFICATION
Section was enacted as part of Flood Disaster Protection Act of 1973, and not as part of National Flood Insurance Act of 1968 which comprises this chapter.
AMENDMENTS
1994—Subsec. (a)(5). Pub. L. 103–325, § 511(a)(1), added
par. (5) and struck out former par. (5) which read as follows: ‘‘ ‘Federal instrumentality responsible for the su-