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F e d e r a l R e s e r v e Ba n k DALLAS. TEXAS of Dallas 75222 Circular No. 7*+-258 September 20, 197*+ AMENDMENT TO REGULATION H (Notice to Borrower of Special Flood Hazard) To All Member Banks in the Eleventh Federal Reserve District: The Board of Governors has amended the section of Regulation H which pertains to loans by State member banks on improved real estate or a mobile home in a flood hazard area. The amendment requires State member banks— as a condition of making or renewing a loan secured by affected property— to provide a loan customer with written notice that the property is in a flood hazard area. The amendment, which is effective September 22, 197*+j implements a statutory change to the Housing and Urban Development Act of 1968 adopted August 22, 197*+. Similar rules are being issued by other Federal regulatory agencies for institutions they supervise. A copy of the amendment appears on the reverse side for inser tion in the ring binder containing the regulations of the Board of Governors and bulletins of the Federal Reserve Bank of Dallas. Yours very truly, P. E. Coldwell President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM A M EN D M EN T TO REGULATION H t Effective September 22, 1974, § 208.8(e) shall be amended by adding a new subparagraph (4) as follows: days in advance of closing of the transaction (or not later than the bank’s commitment, if any, if the period between commitment and closing is less than 10 days) a written notice to the borrower SECTION 208.8— BANKING PRACTICES that the property securing the loan is in an area so identified. In lieu of the notification required S=« % sfs # in this section, a bank may obtain satisfactory (e) L oans by State m em ber banks in identified written assurances from a seller or lessor that such flood h azard areas. seller or lessor has notified the borrower, prior to * * si< s.% * the execution of any agreement for sale or lease, that the property securing the loan is in an area so (4) N otice to borrow er of special flood hazard. identified. A bank shall require the borrower, prior After September 21, 1974, each State member to closing, to provide the bank with a written bank shall as a condition of making, increasing, acknowledgment that the borrower realizes that extending, or renewing any loan secured by im the property, securing the loan or upon which a proved real estate or a mobile home located or to mobile home is or will be located, is in a special be located in an area that has been identified by flood hazard area. the Secretary of Housing and Urban Development as an area having special flood hazards, mail or deliver as soon as feasible but not less than 10 * * * * * tFor this Regulation to be complete as amended effective September 22, 1974 retain: 1) Printed Regulation pamphlet as amended effective March 18, 1969. 2) Amendment to § 208.10(b) and (c) effective December 21, 1973. 3) Amendments adding a new § 208.8 and renumbering succeeding sections effective March 2, 1974. 4) Slip sheet effective September 16, 1974. 5) This slip sheet SEPTEMBER, 1974
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