339.4—Exemptions.
The flood insurance requirement prescribed by § 339.3 does not apply with respect to:
(a)
Any State-owned property covered under a policy of self-insurance satisfactory to the Director of FEMA, who publishes and periodically revises the list of States falling within this exemption; or
(b)
Property securing any loan with an original principal balance of $5,000 or less and a repayment term of one year or less.