[Code of Federal Regulations]
[Title 23, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 23CFR140.602]

[Page 14]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 140--REIMBURSEMENT--Table of Contents
 
            Subpart F--Reimbursement for Bond Issue Projects
 
Sec. 140.602  Requirements and conditions.

    (a) An SHA that uses the proceeds of bonds issued by the State, a 
county, city or other political subdivision of the State, for the 
construction of projects on the Federal-aid primary or Interstate 
system, or extensions of any of the Federal-aid highway systems in urban 
areas, or for substitute highway projects approved under 23 U.S.C. 
103(e)(4), may claim payment of any portion of such sums apportioned to 
it for expenditures on such system to aid in the retirement of the 
principal of bonds at their maturities, to the the extent that the 
proceeds of bonds have actually been expended in the construction of 
projects.
    (b) Any interest earned and payable on bonds, the proceeds of which 
were expended on Interstate projects after November 6, 1978, is an 
eligible cost of construction. The amount of interest eligible for 
participation will be based on (1) the date the proceeds were expended 
on the project, (2) amount expended, and (3) the date of conversion to a 
regularly funded project. As provided for in section 115(c), Pub. L. 95-
599, November 6, 1978, interest on bonds issued in any fiscal year by a 
State after November 6, 1978, may be paid under the authority of 23 
U.S.C. 122 only if such SHA was eligible to obligate Interstate 
Discretionary funds under the provisions of 23 U.S.C. 118(b) during such 
fiscal year, and the Administrator certifies that such eligible SHA has 
utilized, or will utilize to the fullest extent possible during such 
fiscal year, its authority to obligate funds under 23 U.S.C. 118(b).
    (c) The Federal share payable at the time of conversion, as provided 
for in Sec. 140.610 shall be the legal pro rata in effect at the time of 
execution of the project agreement for the bond issue project.
    (d) The authorization of a bond issue project does not constitute a 
commitment of Federal funds until the project is converted to a regular 
Federal-aid project as provided for in Sec. 140.610.
    (e) Reimbursements for the redemption of bonds may not precede, by 
more than 60 days, the scheduled date of the retirement of the bonds.
    (f) Federal funds are not eligible for payment into sinking funds 
created and maintained for the subsequent retirement of bonds.