Bank policy is to obtain a new Flood Determination on all renewals for commercial loans with RE as collateral. I am looking at a Commercial RE loan and the bank took a Hypothecation Agr for a commercial bldg. My question is does the RE taken as collateral in the hypothecation Agreeement trigger the bank to obtain a new determination?

Collateral pledged via hypothecation agreement is no different than any other collateral securing a loan. A determination should have been obtained when the collateral was taken and all ordinary rules apply at renewal of the loan. If bank policy is to obtain a new determination on all renewals, this would be no different just because the documentation involved a hypothecation.

Thanks Kathleen.