42 U.S. Code § 4017a - Reserve Fund
(a) Establishment of Reserve Fund
In carrying out the flood insurance program authorized by this subchapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Reserve Fund (in this section referred to as the “Reserve Fund”) which shall—
(2) be available for meeting the expected future obligations of the flood insurance program, including—
(b) Reserve ratio
Subject to the phase-in requirements under subsection (d), the Reserve Fund shall maintain a balance equal to—
(1) 1 percent of the sum of the total potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; or
(c) Maintenance of reserve ratio
(1) In general
The Administrator shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary—
In exercising the authority granted under paragraph (1), the Administrator shall consider—
In exercising the authority granted under paragraph (1), the Administrator shall be subject to all other provisions of this chapter, including any provisions relating to chargeable premium rates or annual increases of such rates.
(B) Use of additional annual insurance premiums
Notwithstanding any other provision of law or any agreement entered into by the Administrator, the Administrator shall ensure that all amounts attributable to the establishment or increase of annual insurance premiums under paragraph (1) are transferred to the Administrator for deposit into the Reserve Fund, to be available for meeting the expected future obligations of the flood insurance program as described in subsection (a)(2).
(d) Phase-in requirements
The phase-in requirements under this subsection are as follows:
(1) In general
Beginning in fiscal year 2013 and not ending until the fiscal year in which the ratio required under subsection (b) is achieved, in each such fiscal year the Administrator shall place in the Reserve Fund an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(2) Amount satisfied
As soon as the ratio required under subsection (b) is achieved, and except as provided in paragraph (3), the Administrator shall not be required to set aside any amounts for the Reserve Fund.
If at any time after the ratio required under subsection (b) is achieved, the Reserve Fund falls below the required ratio under subsection (b), the Administrator shall place in the Reserve Fund for that fiscal year an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(e) Limitation on reserve ratio
In any given fiscal year, if the Administrator determines that the reserve ratio required under subsection (b) cannot be achieved, the Administrator shall submit, on a calendar quarterly basis, a report to Congress that—
(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not being achieved;
(2) demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and
Source(Pub. L. 90–448, title XIII, § 1310A, as added Pub. L. 112–141, div. F, title II, § 100212,July 6, 2012, 126 Stat. 922; amended Pub. L. 113–89, §§ 8(b), 20,Mar. 21, 2014, 128 Stat. 1024, 1028.)
References in Text
This chapter, referred to in subsec. (c)(3)(A), was in the original “this Act”, and was translated as reading “this title”, meaning title XIII of Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 572, known as the National Flood Insurance Act of 1968, which is classified principally to this chapter, to reflect the probable intent of Congress. For complete classification of this Act to the Code, see Short Title note set out under section 4001 of this title and Tables.
2014—Subsec. (c)(4). Pub. L. 113–89, § 8(b), added par. (4).
Subsec. (e). Pub. L. 113–89, § 20, inserted “, on a calendar quarterly basis,” after “submit” in introductory provisions.