§264-26  Combination of federal and statefunds.  (a)  Every agreement for the engineering or construction offederal-aid highways or for the acquisition of rights-of-way for these highwaysshall 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 payableout of local funds.  As to that portion of the price that is payable out offederal-aid funds, the agreement is that the State will pay the contractor onlyout of federal funds actually received for that portion of the project and isnot a general agreement on the part of the State to pay that portion out of anyother funds.  Each agreement shall be deemed to contain a provision to thateffect whether specifically included or not.

(b)  Any moneys appropriated for the State'sshare of the price or any moneys in the state highway fund created by section248-8, in the discretion of the director, may be drawn upon to advance thefederal share of payments (1) earned by contractors on federal-aid projects forcompleted portions of the work, or (2) due the owners for property conveyed bythem where the necessary federal-aid moneys are not immediately forthcoming,the appropriation or fund to be reimbursed for the advances when federal-aidmoneys 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 LSp 1993, c 8, §20]