§261-8  Federal aid.  The department oftransportation may accept, receive, receipt for, disburse, and expend federalmoneys, and other moneys, public or private, made available by grant or loan toaccomplish, in whole or in part, any of the purposes of this chapter.  Allfederal moneys accepted under this section shall be accepted and expended bythe department upon such terms and conditions as are prescribed by the UnitedStates, and the department may enter into any contracts which may be requiredin connection therewith.  All moneys received by the department pursuant tothis section shall be deposited in the treasury and, unless otherwiseprescribed by the authority from which the moneys were received, shall be keptin separate funds designated according to the purpose for which the same weremade available, to be disbursed or expended in accordance with the terms andconditions upon which they were made available. [L 1947, c 32, pt of §1; RL1955, §15-14; am L Sp 1959 2d, c 1, §26; HRS §261-8]