Customer: Return
to:
John Doe Attn:
Contact/Loan Officer
1 Flynn Avenue Bank
Burlington, VT 05401
Address
City,
State, ZIP
This notice is required by law. Please read it
carefully and retain a copy for your records in a safe place. We are giving you
this notice to inform you:
NOTICE TO
BORROWER OF FLOOD HAZARD AREA
The property is not identified by the Director of
the Federal Emergency Management Agency as being in a special flood hazard
area. Therefore, no flood insurance is
required.
The area has not been identified by the Director of
the Federal Emergency Management Agency (FEMA) as a special flood hazard area
using FEMA’s Flood Insurance Rate map or a Flood Hazard Boundary Map for the
following community: BURLINGTON
FEMA has declared that over 30% of all flood losses
reported involve homes or businesses located outside of special flood hazard
areas. Although flood insurance is not
required on this loan, the borrower should be advised insurance is available if
in a participating community and should consider protecting against this risk.
NOTICE TO
BORROWER ABOUT FEDERAL FLOOD DISASTER ASSISTANCE
The community in which the property securing the
loan is located participates in the National Flood Insurance Program
(NFIP). The flood insurance must be maintained for
the life of the loan. If you fail to
purchase or renew flood insurance when required on the property, Federal law
authorizes and requires us to purchase the flood insurance for you at your
expense.
* Flood
insurance coverage under the NFIP may be purchased through an insurance agent
who will obtain the policy either directly through the NFIP or through an
insurance company that participates in the NFIP. Flood insurance also may be
available from private insurers that do not participate in the NFIP.
* At a minimum, flood insurance purchased
must cover the lesser of:
(1)
the
outstanding balance of the loan; or
(2)
the
maximum amount of coverage allowed for the type of property under the
NFIP. Flood insurance under the NFIP is
limited to the overall value of the property securing the loan minus the value
of the land on which the property is located.
* Federal
disaster relief assistance (usually in the form of a low-interest loan) may be
available for damages incurred in excess of your flood insurance if your
community’s participation in the NFIP is in accordance with NFIP requirements.
ACKNOWLEDGEMENT
OF THE BORROWER (S)
After reviewing this Notice, please sign and return
to your lender so that your loan can be processed. In addition, by signing
below, you are acknowledging receipt of this notice and you are agreeing to
obtain Flood Insurance, now or at a later date, to the extent such insurance is
required by your lender and is available for the term of the loan and for the
full un-paid principal balance of the loan.
ACKNOWLEDGED
AND AGREED:
____________________________________________________ __________________________________________________
____________________________________________________ __________________________________________________
(BORROWER) (DATE) (JOINT BORROWER) (DATE)
DATE
MAILED TO BORROWER: ____________________________ BY: ______________________________________________