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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY HANNA, BOYD, CARROLL, CONKLIN, FABRIZIO, FAIRCHILD, FRANKEL, GEIST, HALUSKA, KORTZ, KOTIK, MAHONEY, McGEEHAN, MURT, PALLONE, SIPTROTH, K. SMITH, SOLOBAY AND WHITE, MARCH 13, 2009 |
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| REFERRED TO COMMITTEE ON INSURANCE, MARCH 13, 2009 |
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| AN ACT |
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1 | Regulating the amount of flood insurance coverage required by |
2 | persons purchasing mortgages from lenders. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Flood |
7 | Insurance Coverage Act. |
8 | Section 2. Definitions. |
9 | The following words and phrases when used in this act shall |
10 | have the meanings given to them in this section unless the |
11 | context clearly indicates otherwise: |
12 | "Flood insurance coverage." Flood insurance covering owner- |
13 | occupied private residential properties against losses caused by |
14 | floods. |
15 | "Lender." Any bank, savings bank, savings and loan |
16 | association, credit union, mortgage bank, mortgage broker, |
17 | finance company, consumer discount company or other financial |
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1 | institution or person that lends money to a borrower and secures |
2 | the loan by a mortgage given by the borrower on real property or |
3 | by placing a lien against real property. |
4 | Section 3. Restriction. |
5 | No person who purchases a mortgage from a lender may require |
6 | the borrower, as a condition of maintaining the secured loan, to |
7 | obtain flood insurance coverage which exceeds the amount |
8 | required by the lender at the time during which the loan was |
9 | originated. |
10 | Section 4. Effective date. |
11 | This act shall take effect immediately. |
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