§264-26  Combination of federal and state
funds.  (a)  Every agreement for the engineering or construction of
federal-aid highways or for the acquisition of rights-of-way for these highways
shall be made on behalf of the State by the director of transportation. 
Section 103D-309 shall apply only to that portion of the price that is payable
out of local funds.  As to that portion of the price that is payable out of
federal-aid funds, the agreement is that the State will pay the contractor only
out of federal funds actually received for that portion of the project and is
not a general agreement on the part of the State to pay that portion out of any
other funds.  Each agreement shall be deemed to contain a provision to that
effect whether specifically included or not.



(b)  Any moneys appropriated for the State's
share of the price or any moneys in the state highway fund created by section
248-8, in the discretion of the director, may be drawn upon to advance the
federal share of payments (1) earned by contractors on federal-aid projects for
completed portions of the work, or (2) due the owners for property conveyed by
them where the necessary federal-aid moneys are not immediately forthcoming,
the appropriation or fund to be reimbursed for the advances when federal-aid
moneys are received. [L 1929, c 53, pt of §1; am L 1933, c 77, §1; RL 1935,
§1714; RL 1945, §4965; RL 1955, §111-6; am L 1967, c 116, §1; HRS §264-26; am L
Sp 1993, c 8, §20]