(a) Acceptance Authorized, Conditions.

(1) Every municipality is authorized to accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan, or both, to accomplish, in whole or in part, any of the purposes of this chapter.

(2)

(A) All federal moneys accepted under this section shall be accepted and expended by the municipality upon such terms and conditions as are prescribed by the United States and as are consistent with state law.

(B) All state moneys accepted under this section shall be accepted and expended by the municipality upon such terms and conditions as are prescribed by the state.

(3) Unless otherwise prescribed by the agency from which the moneys were received, the chief financial officer of the municipality shall, on its behalf, deposit all moneys received pursuant to this section and shall keep them, in separate funds designated according to the purposes for which the moneys were made available, in trust for these purposes.

(b) Aeronautics Commission as Agent. (1) (A) (i) A municipality is authorized to designate the Arkansas Department of Aeronautics as its agent to accept, receive, receipt for, and disburse federal and state moneys and other moneys, public or private, made available by grant or loan, or both, to accomplish, in whole or in part, any of the purposes of this chapter and to designate the commission as its agent in contracting for and supervising the planning, acquisition, development, construction, improvement, maintenance, equipment, or operation of any airport or other air navigation facility.

(ii) All contracts made, let, or awarded by the department, acting as agent of a municipality under authority of this section, shall be made, let, or awarded pursuant to the laws governing the making of contracts by or on behalf of the state.

(B) The municipality may enter into an agreement with the department prescribing the terms and conditions of the agency in accordance with such terms and conditions as are prescribed by the United States, if federal money is involved, and in accordance with the applicable laws of this state.

(2)

(A) All federal moneys shall be accepted and transferred or expended by the commission upon such terms and conditions as are prescribed by the United States.

(B) All moneys received by the department pursuant to this subsection shall be deposited in the State Treasury and, unless otherwise prescribed by the agency from which the moneys were received, shall be kept in separate funds designated according to the purposes for which the moneys were made available and held by the state in trust for these purposes.