General Assembly Substitute Bill No. 678
January Session, 2015 *_____SB00678PD____033015____*
General Assembly
Substitute Bill No. 678
January Session, 2015
*_____SB00678PD____033015____*
AN ACT CONCERNING MUNICIPAL FLOOD ZONE MAPS AND THE PROHIBITION OF FLOOD INSURANCE AS PREREQUISITE FOR MORTGAGE LOAN FOR CERTAIN PROPERTIES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. (NEW) (Effective October 1, 2015) An engineer employed or retained by a municipality may revise a municipal flood zone map such that it is consistent with a change in the flood zone designation on a flood insurance rate map granted by the Federal Emergency Management Agency pursuant to the procedure for map correction or amendment set forth in 44 CFR Part 70 et seq., as amended from time to time, or 44 CFR Part 72 et seq., as amended from time to time.
Sec. 2. (NEW) (Effective October 1, 2015) No mortgage lender shall, in connection with any application for a mortgage loan in this state that is secured by mortgage on real property located in this state, require any prospective mortgagor to obtain a flood insurance policy for real property if (1) such property is not designated as within a special flood hazard area on the flood insurance rate map issued by the Federal Emergency Management Agency, or (2) the Federal Emergency Management Agency has issued a map correction or amendment pursuant to the procedure for map correction or amendment set forth in 44 CFR Part 70 et seq., as amended from time to time, or 44 CFR Part 72 et seq., as amended from time to time, as applicable, that indicates that such property is not designated as within a special flood hazard area.
This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2015 New section
Sec. 2 October 1, 2015 New section
This act shall take effect as follows and shall amend the following sections:
Section 1
October 1, 2015
New section
Sec. 2
October 1, 2015
New section
Statement of Legislative Commissioners:
The title was changed for accuracy and in Section 2, "real estate" was changed to "real property" for consistency.
PD Joint Favorable Subst. -LCO
PD
Joint Favorable Subst. -LCO