salvage value, where repair is not economical. (5) Any other evidence or information which may have a bearing on the responsibility of the United States for the injury to or loss of property or the damages claimed. (d) Time limit. All evidence required to be submitted by this section shall be furnished by the claimant within a reasonable time. Failure of a claimant to furnish evidence necessary for a determination of his claim within 3 months after a request therefor has been mailed to his last known address may be deemed an abandonment of the claim. The claim may be thereupon disallowed. § 750.5 Investigation, examination, and determination of claims. When a claim is received, the constituent agency out of whose activities the claim arose shall make such investigation as may be necessary or appropriate for a determination of the validity of the claim and thereafter shall forward the claim, together with all pertinent material, and a recommendation based on the merits of the case, with regard to the allowance or disallowance of the claim, to the Office of General Counsel, National Credit Union Administration to whom authority has been delegated to adjust, determine, compromise and settle all claims hereunder. § 750.6 Final denial of claim. (a) Final denial of an administrative claim shall be in writing and sent to the claimant, his attorney, or legal representative by certified or registered mail. The notification of final denial may include a statement of the reasons for the denial and shall include a statement that, if the claimant is dissatisfied with the action of the National Credit Union Administration, he may file suit in an appropriate U.S. District Court not later than 6 months after the date of mailing the notification. (b) Prior to the commencement of suit and prior to the expiration of the 6month period after the date of mailing, by certified or registered mail of notice of final denial of the claim as provided in 28 U.S.C. 2401(b), a claimant, his duly authorized agent, or legal representative, may file a written request with the National Credit Union Administration for reconsideration of a final denial of a claim under paragraph (a) of this section. Upon the timely filing of a request for reconsideration the National Credit Union Administration shall have 6 months from the date of filing in which to make a final disposition of the claim and the claimant's option under 28 U.S.C. 2675 (a) to bring suit shall not accrue until 6 months after the filing of a request for reconsideration. Final National Credit Union Administration action on a request for reconsideration shall be effected in accordance with the provisions of paragraph (a) of this section. § 750.7 Payment of approved claims. (a) Upon allowance of his claim, claimant or his duly authorized agent shall sign the voucher for payment, Standard Form 1145, before payment is made. (b) When the claimant is represented by an attorney, the voucher for payment (S.F. 1145) shall designate both the claimant and his attorney as "payees." The check shall be delivered to the attorney whose address shall appear on the voucher. § 750.8 Release. Acceptance by the claimant, his agent or legal representative, of any award, compromise or settlement made hereunder, shall be final and conclusive on the claimant, his agent or legal representative and any other person on whose behalf or for whose benefit the claim has been presented, and shall constitute a complete release of any claim against the United States and any employee of the Government whose act or omission gave rise to the claim, by reason of the same subject matter. § 750.9 Penalties. A person who files a false claim or makes a false or fraudulent statement in a claim against the United States may be liable to a fine of not more than $10,000 or to imprisonment of not more than 5 years, or both (18 U.S.C. 2871001), and, in addition, to a forefeiture of $2,000 and a penalty of double the loss or damage sustained by the United States (31 U.S.C. 231). § 750.10 Limitation on National Credit Union Administration's authority. (a) An award, compromise or settlement of a claim hereunder in excess of $25,000 shall be effected only with the prior written approval of the Attorney General or his designee. For purposes of this paragraph, a principal claim and any derivative or subrogated claim shall be treated as a single claim. (b) An administrative claim may be adjusted, determined, compromised or settled hereunder only after consultation with the Department of Justice when, in the opinion of the National Credit Union Administration: (1) A new precedent or a new point of law is involved; or (2) A question of policy is or may be involved; or (3) The United States is or may be entitled to indemnity or contribution from a third party and the National Credit Union Administration is unable to adjust the third party claim; or (4) The compromise of a particular claim, as a practical matter, will or may control the disposition of a related claim in which the amount to be paid may exceed $25,000. (c) An administrative claim may be adjusted, determined, compromised or settled only after consultation with the Department of Justice when it is learned that the United States or any employee, agent or cost-plus contractor of the United States is involved in litigation based on a claim arising out of the same incident or transaction. Sec. PART 760-FLOOD INSURANCE 760.0 Scope. 760.1 Definitions. 760.2 Implementation. AUTHORITY: Sec. 120, 73 Stat. 635 (12 U.S.C. 1766), and Sec. 209, 84 Stat. 1014 (12 U.S.C. 1789). § 760.0 Scope. In enacting the Flood Disaster Protection Act of 1973 (87 Stat. 975) on December 31, 1973, the Congress found that annual losses throughout the nation from floods and mudslides are increasing at an alarming rate, partly as a result of the accelerating development of, and concentration of population in, areas of flood hazards. The Congress further found that a component part of this accelerating development has been the availability of financial assistance, including real estate loans by Federal credit unions, federally-insured State credit unions and other financial institutions, thus encouraging construction in flood prone areas. Accordingly, the Flood Disaster Protection Act imposes certain conditions on the making of such loans by federally supervised, regulated or insured credit unions and other financial institutions, requiring in substance that the property securing such loans be covered by adequate flood insurance. To implement these requirements, the Federal financial supervisory agencies designated in the Act, including the National Credit Union Administration, were directed, pursuant to section 102(b) and 202(b) of the Act, to issue appropriate regulations with respect to institutions under their supervisory jurisdiction. This regulation is intended to comply with that legislative mandate and is issued under sections 102(b), 102(c), 201 (d), 203(b), and 205(b) of the Flood Disaster Protection Act of 1973 (87 Stat. 978, 982). [39 FR 37189, Oct. 18, 1974, as amended at 40 FR 29264, July 11, 1975] (a) "Community" means a state or political subdivision thereof which has building code jurisdiction over a particular area having special flood hazards. (b) "Participating" for the purpose of this section means a community participating in the national flood insurance program is a community which has complied with the requirements for participation as set forth in § 1909.22 of the regulations of the Federal Insurance Administration of the Department of Housing and Urban Development (24 CFR 1909.22) and in which flood insurance is currently being sold. (c) "Flood insurance" means insurance obtained in accordance with the requirements of the National Flood Insurance Program, as promulgated by the Federal Insurance Administration. Flood insurance includes insurance issued by private insurers which meets these requirements. [39 FR 37189, Oct. 18, 1974, as amended at 40 FR 29264, July 11, 1975] § 760.2 Implementation. (a) On and after July 1, 1975, (or on or after the end of one year from the time that a community is notified that it is formally identified as a flood-prone community, as provided below, whichever is later) no Federal credit union nor federally-insured State credit union shall make, increase, extend or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been iden tified by the Secretary of Housing and Urban Development as an area having special flood hazards unless the community in which such area is situated is then participating in the National Flood Insurance Program, except that a loan which is secured by such property, as described above, which has been previously occupied need not be in compliance with this regulation until on or after March 1, 1976. (b) Where an area has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards (and the community in which the area is situated is then participating in the National Flood Insurance Program and has available to it flood insurance under the National Flood Insurance Act of 1968, as amended), Federal credit unions and federally-insured state credit unions may make, increase, extend or renew loans secured by improved real estate or mobile homes located in such special flood hazard areas only if the building or mobile home and any personal property securing the loan is covered for the term of the loan by flood insurance in an amount at least equal to the outstanding principal balance of the loan or to the maximum limit of coverage made available with respect to the particular type of property under the Act, whichever is less. (c) Notwithstanding the provisions of paragraph (a) of this section, flood insurance shall not be required on any State-owned property that is covered under an adequate policy of self-insurance satisfactory to the Secretary of Housing and Urban Development who shall publish and periodically revise the list of states falling within the exemption provided in this paragraph. (d) Each Federal credit union and each federally-insured State credit union shall maintain in connection with all loans secured by improved real estate, or a mobile home, sufficient records to indicate the method used by the credit union to determine whether or not such loans fall within the provisions of paragraphs (a) and (e) of this section. (e) Each Federal credit union and each federally-insured State credit union shall, as a condition of making, increasing, extending, or renewing any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Secretary of Housing and Urban Development as an area having special flood hazards, notify the member-borrower of such special flood hazards, in writing, a reasonable period in advance of the signing of the purchase agreement, lease or other documents involved in the transaction. In lieu of the notification required in this section each Federal credit union and each federally-insured State credit union may obtain satisfactory written assurances from the seller or lessor, and acknowledged by the borrower, that such seller of lessor has notified the borrower, prior to the execution of any agreement for sale or lease, that the property securing the loan is in an area so identified. [39 FR 37190, Oct. 18, 1974; 39 FR 37768, Oct. 24, 1974, as amended at 40 FR 29264, July 11, 1975; 40 FR 41998, Sept. 10, 1975; 41 FR 7388, Feb. 18, 1976] § 810.0 Authority for issue and sale. The Federal Financing Bank is authorized under the Federal Financing Bank Act of 1973, to issue publicly, with the approval of the Secretary of the Treasury, obligations having such maturities and bearing such rate or rates of interest as may be determined by the Bank. Pursuant to this authority, Federal Financing Bank bills, referred to herein as "FFB bills," are offered for sale from time to time and tenders invited therefor, through the Federal Reserve Banks. The FFB bills so offered, the tenders made, and all subsequent transactions therein are subject to the terms and conditions of the public notice offering the bills for sale, this circular, and to the extent not inconsistent with such notice and circular, to Department of the Treasury Circular No. 418, current revision, the regulations governing United States Treasury bills, and all other Page 881 882 regulations governing United States securities. § 810.1 Description of Federal Financing Bank bills. (a) General. Federal Financing Bank bills are bearer obligations of the Federal Financing Bank, the terms of which provide for payment of a specified amount on a specified date. They are issued only by Federal Reserve Banks and Branches, pursuant to tenders accepted by the Federal Financing Bank, and are available in both definitive and book-entry form. Where issued as a definitive security, it shall not be valid unless the issue date, the maturity date and the CUSIP number are imprinted thereon. (b) Denominations. Federal Financing Bank bills will be issued in denominations of $10,000, $15,000, $50,000, $100,000, $500,000 and $1,000,000 (maturity value). § 810.2 Public notice of offering. On the occasion of an offering of FFB bills, tenders therefor will be invited through public notices issued by the Federal Financing Bank. Each notice will set forth the amount offered, the issue date, the date they will be due and payable, the place and the date of the closing hour for the receipt of tenders and the date on which payment for accepted tenders must be made or completed. § 810.3 Payment at maturity. Each FFB bill will be paid in its face amount at maturity upon presentation and surrender to any Federal Reserve Bank or Branch or to the Department of Federal Financing Bank bills lawful investments and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of the United States, the District of Columbia, the Commonwealth of Puerto Rico or any territory or possession of the United States. They are eligible for purchase by national banks, and will be accepted at maturity value to secure public moneys. All FFB bills shall be subject to Federal taxation to the same extent as obligations of private corporations are taxed. § 810.6 Exemption. Obligations of the Federal Financing Bank are deemed to be exempted securities within the meaning of section 3(a) (2) of the Securities Act of 1933 (15 U.S.C. 77c (a) (2), of section 3 (a) (12) of the Securities Exchange Act of 1934 (15 U.S.C. 78(a) (12)), and of section 304(a) (4) of the Trust Indenture Act of 1939 (15 U.S.C. 77ddd(a)(4)). The Federal Reserve Banks, as fiscal agents of the United States, have been authorized by the Department of the Treasury to perform all such acts as may be necessary to carry out the provisions of this and other circulars of the Department of the Treasury as may be applicable to FFB bills, and of any public notice or notices issued in connection with any offering of these securities. § 810.8 Reservations as to terms of circular. The Federal Financing Bank reserves the right to amend, supplement, revise or withdraw all or any of the provisions of this circular at any time or from time to time. Registered bonds and notes. AUTHORITY: The Federal Financing Bank Act of 1973, sections 9-11, 87 Stat. 939, 940; 12 U.S.C. 2288, 2289, 2290. SOURCE: 40 FR 5532, Feb. 6, 1975, unless otherwise noted. In this part, unless the context otherwise requires or indicates: (a) "Reserve Bank" means the Federal Reserve Bank of New York (and any other Federal Reserve Bank which agrees to issue Federal Financing Bank securities in book-entry form) as fiscal agent of the United States acting on behalf of the Federal Financing Bank and, when indicated, acting in its individual capacity. (b) "Federal Financing Bank security" means a Federal Financing Bank bond, note, certificate of indebtedness, or bill issued under the Federal Financing Bank Act of 1973, in the form of a definitive Federal Financing Bank security or a book-entry Federal Financing Bank security. (c) "Definitive Federal Financing Bank security" means a Federal Financing Bank bond, note, certificate of indebtedness, or bill issued under the Federal Financing Bank Act of 1973, in engraved or printed form. (d) "Book-entry Federal Financing Bank security" means a Federal Financing Bank bond, note, certificate of indebtedness, or bill issued under the Federal Financing Bank Act of 1973, in the form of an entry made as prescribed in this part on the records of a Reserve Bank. (e) "Pledge" includes a pledge of, or any other security interest in, Federal Financing Bank securities as collateral for loans or advances or to secure de |