National Credit Union Administration |
 | Sec. 760.3 Requirement to purchase flood insurance where available.
(a) In general. A credit union shall not make, increase, extend, or
renew any designated loan unless the building or mobile home and any
personal property securing the loan is covered by flood insurance for
the term of the loan. The amount of insurance must be at least equal to
the lesser of the outstanding principal balance of the designated loan
or the maximum limit of coverage available for the particular type of
property under the Act. Flood insurance coverage under the Act is
limited to the overall value of the property securing the designated
loan minus the value of the land on which the property is located.
(b) Table funded loan. A credit union that acquires a loan from a
mortgage broker or other entity through table funding shall be
considered to be making a loan for the purposes of this part.
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