Pinnacle Bank pays $4,500 for flood insurance-related violations

The FDIC considered the matter and determined that the Bank has engaged in a pattern or practice of committing violations of the Flood Disaster Protection Act, the notice requirements under section 1364 of the National Flood Insurance Act of 1968, 42 U.S.C. 4104a, and Part 339 of the FDIC Rules and Regulations, 12 C.F.R. Part 339, as follows:
• 12 C.F.R. § 339.7, by failing to follow force placement flood insurance procedures for 2 loans;
• 12 C.F.R. § 339.9(a), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance when making, increasing, extending or renewing a loan on 15 occasions;
• 12 C.F.R. § 339.9(c), by failing to provide to borrowers a Notice of Special Flood Hazard and Availability of Federal Disaster Relief Assistance within a reasonable time before the completion of the transaction on 1 loan.