The federal financial institution regulatory agencies and the Farm Credit System (the Agencies), have issued updated Interagency Questions and Answers Regarding Flood Insurance. In addition, the Agencies are requesting public comment on five new questions and answers. Comments on the new questions and answers are due by September 21. The revised Interagency Questions and Answers provide information to help financial institutions meet their compliance responsibilities under the federal flood insurance laws and regulations, and to increase public understanding of flood insurance requirements. The revised Interagency Questions and Answers, originally proposed in March of 2008, supersede the 1997 Interagency Questions and Answers and take effect on September 21. However, certain guidance relating to condominium coverage applies only to loans made, extended or renewed after that date. New questions and answers, as well as substantive and technical revisions to the existing guidance, address construction loans, residential condominium loans, loan syndications and participations, private insurance policies, and mandatory civil money penalties. The Agencies also are proposing five new questions and answers for public comment that address the definition of insurable value and issues relating to force placement.  

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