12 CFR §22.4

1. (a)Any State-owned property covered under a policy of self-insurance satisfactory to the Administrator of FEMA, who publishes and periodically revises the list of States falling within this exemption;
2. (b)Property securing any loan with an original principal balance of $5,000 or less and a repayment term of one year or less; or
3. (c)Any structure that is a part of any residential property but is detached from the primary residential structure of such property and does not serve as a residence. For purposes of this paragraph (c):
   1. (1)“A structure that is a part of a residential property” is a structure used primarily for personal, family, or household purposes, and not used primarily for agricultural, commercial, industrial, or other business purposes;
   2. (2)A structure is “detached” from the primary residential structure if it is not joined by any structural connection to that structure; and
   3. (3)“Serve as a residence” shall be based upon the good faith determination of the national bank or Federal savings association that the structure is intended for use or actually used as a residence, which generally includes sleeping, bathroom, or kitchen facilities.