§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 State
to prepay the costs reimbursable by the federal government on federal aid
projects, when the director determines that:



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



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



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



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



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



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



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



(c)  The director may, in the director's
discretion, require payment of interest on any loan made, the rate of interest
not to exceed that which the State could have realized if it invested the same
in time certificates of deposit.



(d)  The director shall have the option at any
time to recall the loan and recover the outstanding amount of the loan plus
interest due, if any.  [L 1965, c 130, §2; Supp, §132-12.5; HRS §36-22; gen ch
1985]