§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]