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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.
A flood zone is an area designated on a Flood Hazard Boundary Map. These geographical areas are given a specific rating depending on the estimated flood risk. A flood zone will determine how much flood insurance will cost, and whether or not it is mandatory to carry flood insurance.