[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR206.45]

[Page 429-430]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
             CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY
 
PART 206--FEDERAL DISASTER ASSISTANCE FOR DISASTERS DECLARED ON OR AFTER NOVEMBER 23, 1988--Table of Contents
 
                   Subpart B--The Declaration Process
 
Sec. 206.45  Loans of non-Federal share.

    (a) Conditions for making loans. At the request of the Governor, the 
Associate Director may lend or advance to a State, either for its own 
use or for the use of public or private nonprofit applicants for 
disaster assistance under the Stafford Act, the portion of assistance 
for which the State or other eligible disaster assistance applicant is 
responsible under the cost-sharing provisions of the Stafford Act in any 
case in which:

[[Page 430]]

    (1) The State or other eligible disaster assistance applicant is 
unable to assume their financial responsibility under such cost sharing 
provisions:
    (i) As a result of concurrent, multiple major disasters in a 
jurisdiction, or
    (ii) After incurring extraordinary costs as a result of a particular 
disaster;
    (2) The damages caused by such disasters or disaster are so 
overwhelming and severe that it is not possible for the State or other 
eligible disaster assistance applicant to immediately assume their 
financial responsibility under the Act; and
    (3) The State and the other eligible disaster applicants are not 
delinquent in payment of any debts to FEMA incurred as a result of 
Presidentially declared major disasters or emergencies.
    (b) Repayment of loans. Any loan made to a State under paragraph (a) 
of this section must be repaid to the United States. The Governor must 
include a repayment schedule as part of the request for advance.
    (1) The State shall repay the loan (the principal disbursed plus 
interest) in accordance with the repayment schedule approved by the 
Associate Director.
    (2) If the State fails to make payments in accordance with the 
approved repayment schedule, FEMA will offset delinquent amounts against 
the current, prior, or any subsequent disasters, or monies due the State 
under other FEMA programs, in accordance with the established Claims 
Collection procedures.
    (c) Interest. Loans or advances under paragraph (a) of this section 
shall bear interest at a rate determined by the Secretary of the 
Treasury, taking into consideration the current market yields on 
outstanding marketable obligations of the United States with remaining 
periods to maturity comparable to the reimbursement period of the loan 
or advance. Simple interest will be computed from the date of the 
disbursement of each drawdown of the loan/advance by the State based on 
365 days/year.