[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: 23CFR630.711]

[Page 150-151]
 
                           TITLE 23--HIGHWAYS
 
 CHAPTER I--FEDERAL HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION
 
PART 630--PRECONSTRUCTION PROCEDURES--Table of Contents
 
         Subpart G--Advance Construction of Federal-Aid Projects
 
Sec. 630.711  Payment of bond interest.

    (a) For Interstate projects authorized by the FHWA after January 6, 
1983, and for Interstate 4R, Interstate maintenance, primary and NHS 
projects authorized by the FHWA after April 2, 1987, interest earned and 
payable on bonds issued by a State is an eligible cost of construction 
as follows:
    (1) Participating interest cost is based on the actual expenditure 
of bond proceeds on the Federal-aid project. The interest on the bonds 
is applied to the amount of bond proceeds expended on the project from 
the date of expenditure.
    (2) The amount of interest determined in paragraph (a)(1) of this 
section shall not exceed the estimated increase in the physical 
construction cost of the project which would have

[[Page 151]]

occurred had the project been authorized on the date of conversion. The 
estimated increase in the physical construction cost is determined by 
applying the increase, if any, in the national construction cost index 
in effect on the date of conversion over the index in effect on the date 
of the FHWA authorization, to the actual cost of physical construction.
    (b) For Interstate projects under physical construction on January 
1, 1983, and converted to a regular Federal-aid project after January 1, 
1983, bond interest is eligible in accordance with paragraph (a)(1) of 
this section. The restriction in paragraph (a)(2) of this section does 
not apply.