§ 123 TITLE 23—HIGHWAYS Page 78

1978—Pub. L. 95–599 inserted provisions relating to

the retirement of bonds the proceeds of which were

used for program projects, provisions that section was

not to be construed as a commitment on the part of the

United States to pay the principal of any such bonds,

and provisions prohibiting inclusion of interest and incidental costs of bonds in estimated cost of completion.

PAYMENT OF INTEREST ON BONDS ISSUED PRIOR TO AND

AFTER NOVEMBER 6, 1978

Section 115(c) of Pub. L. 95–599 provided that: ‘‘No interest shall be paid under authority of section 122 of

title 23, United States Code, on any bonds issued prior

to the date of enactment of this Act [Nov. 6, 1978], unless such bonds were issued for projects which were

under construction on January 1, 1978. Interest on

bonds issued in any fiscal year by a State after the date

of enactment of this Act may be paid under authority

of section 122 of title 23, United States Code, only if (1)

such State was eligible to obligate funds of another

State under subsection (a) of this section during such

fiscal year and (2) the Secretary of Transportation certifies that such eligible State utilized, or will utilize,

to the fullest extent possible during such fiscal year its

authority to obligate funds under such subsection (a) of

this section [amending section 118(b) of this title]. No

interest shall be paid under section 122 of title 23,

United States Code, on that part of the proceeds of

bonds issued after the date of enactment of this Act

used to retire or otherwise refinance bonds issued prior

to such date.’’

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 101 of this title.

§ 123. Relocation of utility facilities

(a) When a State shall pay for the cost of relocation of utility facilities necessitated by the

construction of a project on any Federal-aid system, Federal funds may be used to reimburse

the State for such cost in the same proportion

as Federal funds are expended on the project.

Federal funds shall not be used to reimburse the

State under this section when the payment to

the utility violates the law of the State or violates a legal contract between the utility and

the State. Such reimbursement shall be made

only after evidence satisfactory to the Secretary

shall have been presented to him substantiating

the fact that the State has paid such cost from

its own funds with respect to Federal-aid highway projects for which Federal funds are obligated subsequent to April 16, 1958, for work, including relocation of utility facilities.

(b) The term ‘‘utility’’, for the purposes of this

section, shall include publicly, privately, and cooperatively owned utilities.

(c) The term ‘‘cost of relocation’’, for the purposes of this section, shall include the entire

amount paid by such utility properly attributable to such relocation after deducting therefrom any increase in the value of the new facility and any salvage value derived from the old

facility.

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 900; Pub. L.

100–17, title I, §133(b)(8), Apr. 2, 1987, 101 Stat.

171.)

AMENDMENTS

1987—Subsec. (a). Pub. L. 100–17 substituted ‘‘any Federal-aid system,’’ for ‘‘the Federal-aid primary or secondary systems or on the Interstate System, including

extensions thereof within urban areas,’’.

§ 124. Advances to States

(a) If the Secretary shall determine that it is

necessary for the expeditious completion of

projects on any of the Federal-aid systems, including the Interstate System, he may advance

to any State out of any existing appropriations

the Federal share of the cost of construction

thereof to enable the State highway department

to make prompt payments for acquisition of

rights-of-way, and for the construction as it progresses. The sums so advanced shall be deposited

in a special revolving trust fund, by the State

official authorized under the laws of the State

to receive Federal-aid highway funds, to be disbursed solely upon vouchers approved by the

State highway department for rights-of-way

which have been or are being acquired, and for

construction which has been actually performed

and approved by the Secretary pursuant to this

chapter. Upon determination by the Secretary

that any part of the funds advanced to any State

under the provisions of this section are no

longer required, the amount of the advance,

which is determined to be in excess of current

requirements of the State, shall be repaid upon

his demand, and such repayments shall be returned to the credit of the appropriation from

which the funds were advanced. Any sum advanced and not repaid on demand shall be deducted from sums due the State for the Federal

pro rata share of the cost of construction of Federal-aid projects.

(b) Notwithstanding subsection (a) of this section, if the Secretary of Transportation determines that any toll bridge, toll tunnel, or approach thereto, which meets the requirements of

section 129 of this title is necessary to complete

an essential gap in the Interstate System then,

upon request of the State highway department,

the Secretary shall, at any time during construction of such bridge, tunnel, or approach and

for one year after it is opened to traffic, and

subject to the conditions and limitations of such

section 129, advance to such State 100 per centum of the cost of construction of such bridge,

tunnel, or approach. So much of the amount so

advanced that exceeds the Federal share of such

construction cost shall be repaid to the United

States as follows:

(1) 50 per centum within one year of the date

such bridge, tunnel, or approach is opened to

traffic,

(2) 25 per centum within two years of such

date of opening, and

(3) 25 per centum within three years of such

date of opening.

Any advance made to a State under this subsection shall be from the funds apportioned to

said State for the Interstate System. So much of

any advance made to a State under this subsection required to be repaid shall be repaid

with interest at a rate determined by the Secretary. If a State receives any advance under

this subsection with respect to any toll bridge,

tunnel, or approach thereto, then the provisions

of section 103(e)(4) of this title shall not apply to

such bridge, tunnel, or approach.

(Pub. L. 85–767, Aug. 27, 1958, 72 Stat. 901; Pub. L.

95–599, title I, §118, Nov. 6, 1978, 92 Stat. 2699.)