[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: 7CFR1806.28]

[Page 1167-1168]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE 
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT OF 
                               AGRICULTURE
 
PART 1806--INSURANCE--Table of Contents
 
                   Subpart B--National Flood Insurance
 
Sec. 1806.28  Borrowers required to escrow.

    For borrowers required to use escrow accounts for the payment of 
real estate taxes and insurance, the flood insurance premium will be 
paid when due from funds contained in the escrow account. If the escrow 
account contains insufficient funds to pay the flood insurance premium 
when due, the County Supervisor will request the borrower to pay an 
amount equal to the difference between the premium due and the escrow 
balance in a lump sum within 30 days after notification. If the borrower 
fails to remit the amount requested, the amount will be advanced and 
charged to the borrower's account as a recoverable cost. The 
amortization period for an advance due to an escrow shortage will be one 
year. Amortization of the charge will be handled in accordance with 
Sec. 1951.310 of subpart G of part 1951 of this chapter. When a borrower 
has more than one loan secured by the real estate on which the flood 
insurance premium is being paid, the advance will be charged to the 
initial or lowest numbered loan.

[56 FR 6946, Feb. 21, 1991]

    Effective Date Note: At 67 FR 78326, Dec. 24, 2002, Sec. 1806.28 was 
amended by revising the words ``Sec. 1951.310 of subpart G of part 1951 
of this chapter'' to read ``7 CFR part 3550'', effective January 23, 
2003

     Exhibit A to Subpart B of Part 1806--Coverage and Premium Rates

    1. The following table sets forth the limits of coverage available 
under the program:

------------------------------------------------------------------------
                               Structure coverage   Contents of coverage
                             ----------------------           4
      Type of structure                            ---------------------
                              Subsidized   Total 3  Subsidized   Total 3
------------------------------------------------------------------------
Single family, residential 1    $35,000    $70,000    $10,000    $20,000
All other, residential 1....    100,000    200,000     10,000     20,000
All nonresidential 2........    100,000    200,000    100,000    200,000
------------------------------------------------------------------------
1 For Alaska, Hawaii, and the Virgin Islands, the following limits of
  coverage apply: Structure coverage for one family residential is
  $50,000 subsidized and $100,000 total coverage, and structure coverage
  for other residential is $150,000 subsidized and $300,000 total
  coverage.
2 Includes hotels and motels with normal occupancy of less than 6
  months.
3 Coverage in amounts exceeding the subsidized limits is available only
  after an actuarial cost has been established and flood insurance rate
  may be issued.
4 Contents of a building must be insured separately from the building.
  However, coverage is applicable to contents only while in an enclosed
  building. Therefore, coverage cannot be written on the contents of a
  three-walled machinery shed or a similar type open building.

    2. The following table sets forth the applicable premium rates:

------------------------------------------------------------------------
                                                     Rates per $100 of
                                                   coverage (subsidized
                Type of structure                          only)
                                                 -----------------------
                                                  Structures   Contents
------------------------------------------------------------------------
All residential.................................      1$0.25       $0.35
All nonresidential..............................        1.40         .75
------------------------------------------------------------------------
 1 Actuarial (nonsubsidized) rates are applicable to any structure, the
  construction or substantial improvement of which started after Dec.
  31, 1974, or the date on which the initial rate map was issued,
  whichever is later, in identified areas having special flood or
  mudslide hazards.

         Exhibit B to Subpart B of Part 1806--Servicing Company

    The servicing company office to be contacted for information 
relative to the availability of coverage under the national flood 
insurance program, flood hazard boundary maps, insurance rate tables, 
and related material.
E.D.S. Federal Corporation, National Flood Insurance, P.O. Box 34294, 
Bethesda, Md.

[[Page 1168]]

20034, phone toll-free 800-638-6620; commercial phone 301-898-5900.

(7 U.S.C. 1989; 42 U.S.C. 1480; 42 U.S.C. 2942; 5 U.S.C. 301; delegation 
of authority by the Secretary of Agriculture, 7 CFR 2.23; delegation of 
authority by the Assistant Secretary for Rural Development, 7 CFR 2.70)

[43 FR 18538, May 1, 1978]

                          PART 1807 [RESERVED]

                          PART 1809 [RESERVED]