Lapse of FEMA Authority to Issue Flood Insurance Contracts
December 23, 2002
Circular No. 11486

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Federal Reserve Board provides interagency guidance on issues related to the lapse in authority of Federal Emergency Management Agency (FEMA) to issue flood insurance contracts after December 31, 2002 under the National Flood Insurance Program (NFIP). This guidance is contained in a letter, CA 02-13, dated December 20, 2002.

The 107th Congress adjourned at the end of November 2002 without extending the statutory authority in the National Flood Insurance Act of 1968 to issue flood insurance policies under NFIP.

The Board's guidance and other documentation is attached [1] [2].

Questions on this matter may be directed at this Bank to Maryann Campbell, Senior Bank Examiner, Legal and Compliance Risk Department.