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A national bank or Federal savings association shall use the standard flood hazard determination form developed by the Administrator of FEMA when determining whether the building or mobile home offered as collateral security for a loan is or will be located in a special flood hazard area in which flood insurance is available under the Act.
Similarly, if a community does not. participate in the program, property owners. are not subject to Federal requirements of. mandatory flood insurance. However, a. lender is still required to inspect any flood. maps to determine flood hazard risk and. provide notice of such risk.