[Code of Federal Regulations]
[Title 7, Volume 11]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1788.3]

[Page 1120]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVII--RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 1788--RUS FIDELITY AND INSURANCE REQUIREMENTS FOR ELECTRIC AND TELECOMMUNICATIONS BORROWERS--Table of Contents
 
               Subpart A--Borrower Insurance Requirements
 
Sec. 1788.3  Flood insurance.

    (a) Borrowers shall purchase and maintain flood insurance for 
buildings in flood hazard areas to the extent available and required 
under the National Flood Insurance Act of 1968, as amended (42 U.S.C. 
4001, et seq.) The insurance should cover, in addition to the building, 
any machinery, equipment, fixtures, and furnishings contained in the 
building.
    (b) The National Flood Insurance Program (see 44 CFR Part 59 et 
seq.) provides for a standard flood insurance policy; however, other 
existing insurance policies which provide flood coverage may be used 
where flood insurance is available in lieu of the standard flood 
insurance policy. Such policies must be endorsed to provide:
    (1) That the insurer give 30 days written notice of cancellation or 
nonrenewal to the insured with respect to the flood insurance coverage. 
To be effective, such notice must be mailed to both the insured and RUS 
and other mortgagees if any and must include information as to the 
availability of flood insurance coverage under the National Flood 
Insurance Program, and
    (2) That the flood insurance coverage is at least as broad as the 
coverage offered by the Standard Flood Insurance Policy.