[Code of Federal Regulations]

[Title 44, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 44CFR206.45]



[Page 431]

 

              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE

 

 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 

                                SECURITY

 

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:

    (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.