On September 14, the Board of Governors of the Federal Reserve System announced the execution of a settlement with a state bank concerning alleged violations of the National Flood Insurance Act (“NFIA”), 42 U.S.C. § 4012a(f)(4). The Board of Governors asserted that where a pattern or practice of violations of NFIA is found, civil penalties of up to $2000 per violation must be imposed. The state bank consented to pay $55,500 in civil money penalties to the National Flood Insurance Program for deposit into the Federal Emergency Management Agency’s National Flood Mitigation Fund. The settlement did not contain any findings of fact or law and resolved the matter without formal proceedings being filed.
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