42 U.S.C. § 4017 : US Code - Section 4017: National Flood Insurance Fund

Search 42 U.S.C. § 4017 : US Code - Section 4017: National Flood Insurance Fund

(a) Establishment; availability
To carry out the flood insurance program authorized by this
chapter, the Director shall establish in the Treasury of the United
States a National Flood Insurance Fund (hereinafter referred to as
the "fund") which shall be an account separate from any other
accounts or funds available to the Director and shall be available
as described in subsection (f) of this section, without fiscal year
limitation (except as otherwise provided in this section) -
(1) for making such payments as may, from time to time, be
required under section 4054 of this title;
(2) to pay reinsurance claims under the excess loss reinsurance
coverage provided under section 4055 of this title;
(3) to repay to the Secretary of the Treasury such sums as may
be borrowed from him (together with interest) in accordance with
the authority provided in section 4016 of this title; and
(4) to the extent approved in appropriations Acts, to pay any
administrative expenses of the flood insurance and floodplain
management programs (including the costs of mapping activities
under section 4101 of this title);
(5) for the purposes specified in subsection (d) of this
section under the conditions provided therein;
(6) for carrying out the program under section 4022(b) of this
title;
(7) for transfers to the National Flood Mitigation Fund, but
only to the extent provided in section 4104d(b)(1) of this title;
(8) for financial assistance under section 4102a of this title
to States and communities for taking actions under such section
with respect to severe repetitive loss properties, but only to
the extent provided in section 4102a(i) of this title; and
(9) for funding, not to exceed $10,000,000 in any fiscal year,
for mitigation actions under section 4030 of this title, except
that, notwithstanding any other provision of this chapter,
amounts made available pursuant to this paragraph shall not be
subject to offsetting collections through premium rates for flood
insurance coverage under this chapter.
(b) Credits to Fund
The fund shall be credited with -
(1) such funds borrowed in accordance with the authority
provided in section 4016 of this title as may from time to time
be deposited in the fund;
(2) premiums, fees, or other charges which may be paid or
collected in connection with the excess loss reinsurance coverage
provided under section 4055 of this title;
(3) such amounts as may be advanced to the fund from
appropriations in order to maintain the fund in an operative
condition adequate to meet its liabilities;
(4) interest which may be earned on investments of the fund
pursuant to subsection (c) of this section;
(5) such sums as are required to be paid to the Director under
section 4015(d) of this title; and
(6) receipts from any other operations under this chapter
(including premiums under the conditions specified in subsection
(d) of this section, and salvage proceeds, if any, resulting from
reinsurance coverage).
(c) Investment of moneys in obligations issued or guaranteed by
United States
If, after -
(1) all outstanding obligations of the fund have been
liquidated, and
(2) any outstanding amounts which may have been advanced to the
fund from appropriations authorized under section 4127(a)(2)(B)
of this title have been credited to the appropriation from which
advanced, with interest accrued at the rate prescribed under
section 2414(e) of this title, as in effect immediately prior to
August 1, 1968,
the Director determines that the moneys of the fund are in excess
of current needs, he may request the investment of such amounts as
he deems advisable by the Secretary of the Treasury in obligations
issued or guaranteed by the United States.
(d) Availability of Fund if operation of program is carried out
through facilities of Federal Government
In the event the Director makes a determination in accordance
with the provisions of section 4071 of this title that operation of
the flood insurance program, in whole or in part, should be carried
out through the facilities of the Federal Government, the fund
shall be available for all purposes incident thereto, including -
(1) cost incurred in the adjustment and payment of any claims
for losses, and
(2) payment of applicable operating costs set forth in the
schedules prescribed under section 4018 of this title,
for so long as the program is so carried out, and in such event any
premiums paid shall be deposited by the Director to the credit of
the fund.
(e) Annual budget
An annual business-type budget for the fund shall be prepared,
transmitted to the Congress, considered, and enacted in the manner
prescribed by sections 9103 and 9104 of title 31 for wholly-owned
Government corporations.
(f) Availability of funds dependent on future appropriations acts
The fund shall be available, with respect to any fiscal year
beginning on or after October 1, 1981, only to the extent approved
in appropriation Acts; except that the fund shall be available for
the purpose described in subsection (d)(1) of this section without
such approval.