(9) Estimated Real Estate Taxes and Insurance. (Indicate annual or monthly.)

(iii) Collection of data.

(A) Each bank shall attempt to collect that information in paragraph (a)(2)(i) of this section during the initial contact with the applicant. If the applicant refuses to furnish all or part of this information, the bank shall note the fact or have the applicant note the fact on the form used for recording the information. If the information regarding race and sex is not voluntarily furnished, the bank shall on the basis of visual observation or surnames, separately note the information on the form or an attached document.

(B) No bank shall engage in any activity which discourages an applicant from providing the information in paragraphs (a)(2)(i) and (a)(2)(ii) of this section. If the bank is unable to obtain any part of the information requested of the applicant under paragraph (a)(2)(ii) of this section, it shall note the reason in the application file. Also, if the bank rejects an application before it has had the opportunity to collect all of the information under paragraph (a)(2)(ii) of this section, it shall note the reason for the rejection in the application file and need not obtain the remaining information.

(iv) Log-sheet. In addition to the other recordkeeping requirements specified in this paragraph (a)(2) of this section, each bank covered by the provision shall keep a log-sheet on its home loan applications by bank office: Provided, That any bank covered by the said provision which had total assets of $50 million or less as of December 31 of the preceding calendar year and also received fewer than 25 home loan applications during that calendar year is not required to keep a log-sheet of this kind. The log-sheet shall contain the information reflected on the sample form in Appendix A. The bank shall be able to trace each entry on the log-sheet to the relevant application file, using the name of the applicant or unique case number assigned by the bank.

(b) Disclosure to applicant. The bank shall advise an applicant that:

(1) The information regarding race/ national origin, marital status, age, and sex in paragraphs (a)(1) and (a)(2) of this section is being requested to enable the Federal Deposit Insurance Corporation to monitor compliance with the Fair Housing and Equal Credit Opportunity Acts which prohibit creditors from discriminating against applicants on these bases;

(2) The Federal Deposit Insurance Corporation encourages the applicant to provide the information requested; and

(3) If the applicant refuses to provide the information concerning race/ national origin or sex, the bank is required, where possible, to note the information on the basis of visual observations or surnames.

(c) Record retention. Each bank shall retain the records required by § 338.4 for 25 months after the bank notifies an applicant of action taken on an application. This requirement applies to records of home loans which are originated by the bank and subsequently sold. The Federal Deposit Insurance Corporation may by written notice extend the retention period.

(d) Substitute system. The recordkeeping provisions of § 338.4 constitute a substitute monitoring program adopted under § 202.13(d) of Regulation B of the Board of Governors of the Federal Reserve System (12 CFR 202.13(d)). A bank collecting the data in compliance with § 338.4 will be in compliance with the recordkeeping requirements of § 202.13 of Regulation

B.

(e) Review of records. Each bank shall make all information collected under paragraph (a) of this section available to FDIC examiners for review upon request.

(f) Notwithstanding any other provision of this section, the Board of Directors may require any bank to keep a log-sheet on its home loan applications by bank office. The log-sheet shall contain the information reflected on the sample form in Appendix A. The bank shall be able to trace each entry on the log-sheet to the relevant application file, using the name of the applicant or unique case number assigned by the bank. The Board shall afford the bank an opportunity to

§ 338.5 Mortgage lending of a controlled

entity.

cants to a controlled entity and which Any bank which refers any appli

controlled entity, shall require the to transacting any business with the by the controlled entity, as a condition purchases any home loans originated

339.4 Exemption.

339.5 Records of compliance.

339.6 Notice of special flood hazard and of the availability of Federal disaster relief assistance.

AUTHORITY: Secs. 102(b) and 202(b), Pub. L. 93-234, 87 Stat. 978, 982 as amended by secs. 704(a) and 703(a), Pub. L. 95-128, 91 Stat. 1145 (42 U.S.C. 4012a(b), 4106(b)); sec. 1364, Pub. L. 93-383, 88 Stat. 739 (42 U.S.C. 4104a).

SOURCE: 45 FR 56028, Aug. 22, 1980, unless otherwise noted.

eral Emergency Management Agency as an area having special flood hazards.

§ 339.3 Requirement to purchase flood in

surance.

No bank shall make, increase, extend, or renew any loan as defined in § 339.2(b) when the improved real estate or mobile home securing the loan is located or is to be located in an area in which flood insurance has been made available under the National Flood Insurance Act of 1968,1 unless the building or mobile home and any personal property securing the loan is covered for the term of the loan by flood insurance. The amount of the insurance must be at least equal to the outstanding principal balance of the loan or the maximum limit of coverage made available for the particular type of property under the Act, whichever is less.

§ 339.4 Exemption.

Flood insurance shall not be required on any State-owned property that is covered under an adequate policy of self-insurance satisfactory to the Director of the Federal Emergency Management Agency who will publish and periodically revise the list of States falling within the exemption provided by this section.

§ 339.5 Records of compliance.

Each bank shall maintain for all extensions of credit secured by improved real estate or a mobile home sufficient records to indicate the method used by the bank to determine whether the extensions of credit fall within the provisions of § 339.3 or § 339.4 of this part.

§ 339.6 Notice of special flood hazard and of the availability of Federal disaster relief assistance.

(a) Notice Requirement. In making, increasing, extending, or renewing a loan as defined in § 339.2(b), each bank shall mail or deliver a written notice to the borrower stating: (1) That the property securing the loan is

'Flood insurance is available to a community when the community is participating in the National Flood Insurance Program.

or will be located in an area identified as a flood hazard area (or in lieu of such notification, the bank may obtain satisfactory written assurance from the seller or lessor that the seller or lessor has notified the borrower, before the execution of any agreement for sale or lease, that the property securing the loan is or will be located in such an area); and (2) whether Federal disaster relief assistance will be available for the property if the property is damaged by a flood in a federally declared disaster. The notice must be mailed or delivered as soon as feasible but not later than 10 days before the 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). Each bank shall require the borrower, before closing, to provide the bank with a written acknowledgment that the borrower realizes the property securing the loan is or will be located in an area identified as a flood hazard area and that the borrower has received the required notice regarding Federal disaster relief assistance.

(b) Sample Notices. A bank providing written notice containing language substantially similar to that presented below, as appropriate, within the time limits prescribed in paragraph (a) of this section will be considered to be in compliance with the notice requirements of paragraph (a) of this section. (1) Notice to Borrower of Special Flood Hazard Area. Notice is hereby given to

(Name of borrower) that the improved real estate or mobile home described in the attached instrument is or will be located in an area designated by the Director of the Federal Emergency Management Agency as a special flood hazard area. This area is delineated on (Name of Community) Flood Insurance. Rate Map (FIRM) or, if the FIRM is unavailable, on the Flood Hazard Boundary Map (FHBM). The area has at least a 1 percent chance of being flooded within any given year. The risk of exceeding the 1 percent chance increases with time periods longer than one year. For example, during the life of a 30-year mortgage, a structure located in a special flood

hazard area has a 26 percent chance of being flooded.

(2) Notice to Borrower about Federal Disaster Relief Assistance-(i) Notice in participating communities. The improved real estate or mobile home securing your loan is or will be located in a community that is now participating in the National Flood Insurance Program. If the property is damaged by flooding in a federally declared disaster, Federal disaster relief assistance may be available. However, such assistance will be unavailable if your community has been identified as a flood-prone area for one year or longer and is not participating in the National Flood Insurance Program when the assistance is approved. This assistance, usually in the form of a loan with a favorable interest rate, may be available for damages incurred in excess of your flood insurance.

(ii) Notice in nonparticipating communities. The improved real estate or mobile home securing your loan is or will be located in a community that is not participating in the National Flood Insurance Program. This means that the property is not eligible for Federal flood insurance. If the property is damaged by flooding in a federally declared disaster, Federal disaster relief assistance for the property will be unavailable if your community has been identified as a flood-prone area for one year or longer. Such assistance may be available only if, at the time the assistance would be approved, your community is participating in the National Flood Insurance Program or has been identified as a flood-prone area for less than one year.

ed (15 U.S.C. 78b, 78c, 78q, 78q-1 and 78w(a)).

SOURCE: 47 FR 38106, Aug. 30, 1982, unless otherwise noted.

§ 341.1 Scope.

This part is issued by the Federal Deposit Insurance Corporation (the "FDIC") under sections 2, 3(a)(34)(B), 17, 17A and 23(a) of the Securities Exchange Act of 1934 (the "Act"), as amended (15 U.S.C. 78b, 78c(a)(34)(B), 78q, 78q-1 and 78w(a)) and applies to all insured nonmember banks, or subsidiaries of such banks, that act as transfer agents for securities registered under section 12 of the Act (15 U.S.C. 781), or for securities exempt from registration under subsections (g)(2)(B) or (g)(2)(G) of section 12 (15 U.S.C. 781(g)(2)(B) and (G)) (securities of investment companies, including mutual funds, and insurance companies). Such securities are “qualifying securities" for purposes of this part.

For the purpose of this part, including all forms and instructions promulgated for use in connection herewith, unless the context otherwise requires: (a) The term "transfer agent" means any person who engages on behalf of an issuer of qualifying securities or on behalf of itself as an issuer of qualifying securities in: (1) Countersigning such securities upon issuance;

(2) Monitoring the issuance of such securities with a view to preventing unauthorized issuance, a function commonly performed by a person called a registrar;

(3) Registering the transfer of such securities;

(4) Exchanging or converting such securities; or

(5) Transferring record ownership of securities by bookkeeping entry without physical issuance of such securities certificates. The term "transfer agent" includes any person who performs these functions as a co-transfer agent with respect to equity or debt issues, and any person who performs these functions as registrar or co-registrar with respect to debt issued by corporations.

NOTE: The following examples are illustra tive of the kinds of activities engaged in b transfer agents under this part.

1. A transfer agent of stock or shares in mutual fund maintains the records of share holders and transfers stock from one share holder to another by cancellation of the su rendered certificates and issuance of new certificates in the name of the new share holder. A co-transfer agent also perform these functions.

2. A registrar of stock or shares in mutual fund monitors the issuance of suc securities to prevent over-issuance of share affixing its signature of each stock certif cate issued to signify its authorized issu ance. A co-registrar also performs thes functions.

3. A registrar of corporate debt securitie maintains the records of ownership of regis tered bonds; makes changes in such records issues, transfers, and exchanges such certifi cates; and monitors the securities to prevenTM over-issuance of certificates. A co-registra also performs these functions.

(b) The term “Act” means the Secu rities Exchange Act of 1934.

(c) The acronym “ARA" means the appropriate regulatory agency, as de fined in section 3(a)(34)(B) of the Act

(d) The phrase "Federal bank regu lators" means the Office of the Comp troller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit In surance Corporation.

(e) The term "Form TA-1" means the form and any attachments to that form, whether filed as a registration or an amendment to a registration.

(f) The term “registrant” means the entity on whose behalf Form TA-1 is filed.

(g) The acronym "SEC" means the Securities and Exchange Commission.

(h) The term "insured nonmember bank" means a bank whose Deposits are insured by the Federal Deposit Insurance Corporation and that is not a member of the Federal Reserve System.

(i) The term "qualifying securities"

means:

(1) Securities registered on a national securities exchange;

(2) Securities issued by a company or bank with 500 or more shareholders and $1 million or more in total assets, except for securities exempted from registration with the SEC by section 12(g)(2) (C, D, E, F and H) of the Act.