§36-22  Loans for federal-aid projects.  (a) The director of finance may make loans to any state agency from the general,special, and revolving funds of the State for the purpose of enabling the Stateto prepay the costs reimbursable by the federal government on federal aidprojects, when the director determines that:

(1)  There are any moneys of the State which in thedirector's judgment are in excess of the amounts necessary for meeting theimmediate requirements of the State and where in the director's judgment theaction will not impede or hamper the necessary financial obligations of theState.

(2)  The project is authorized in compliance withsection 103-7.

(3)  Federal aid in the form of reimbursable funds hasbeen committed to the project in an amount sufficient to repay the principal onthe loan.

(4)  Federal reimbursement is expected to be receivedwithin a reasonable period of time after the loan is made.

(b)  In addition to any other conditions thatthe director of finance may impose, any loan made pursuant to this sectionshall be subject to the following conditions:

(1)  The full amount of the loan must be repaid to thefund from which the loan was made upon final settlement of accounts with theparticipating federal agency.

(2)  The term of the loans shall not exceed onecalendar year from the time of the loan; provided, at the option of thedirector, the loans or the balances thereof may be renewed annually.

(c)  The director may, in the director'sdiscretion, require payment of interest on any loan made, the rate of interestnot to exceed that which the State could have realized if it invested the samein time certificates of deposit.

(d)  The director shall have the option at anytime to recall the loan and recover the outstanding amount of the loan plusinterest due, if any.  [L 1965, c 130, §2; Supp, §132-12.5; HRS §36-22; gen ch1985]