§ 122. — Payments to States for bond and other debt instrument financing.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 23USC122]
TITLE 23--HIGHWAYS
CHAPTER 1--FEDERAL-AID HIGHWAYS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 122. Payments to States for bond and other debt instrument
financing
(a) Definition of Eligible Debt Financing Instrument.--In this
section, the term ``eligible debt financing instrument'' means a bond or
other debt financing instrument, including a note, certificate,
mortgage, or lease agreement, issued by a State or political subdivision
of a State or a public authority, the proceeds of which are used for an
eligible project under this title.
(b) Federal Reimbursement.--Subject to subsections (c) and (d), the
Secretary may reimburse a State for expenses and costs incurred by the
State or a political subdivision of the State and reimburse a public
authority for expenses and costs incurred by the public authority for--
(1) interest payments under an eligible debt financing
instrument;
(2) the retirement of principal of an eligible debt financing
instrument;
(3) the cost of the issuance of an eligible debt financing
instrument;
(4) the cost of insurance for an eligible debt financing
instrument; and
(5) any other cost incidental to the sale of an eligible debt
financing instrument (as determined by the Secretary).
(c) Conditions on Payment.--The Secretary may reimburse a State or
public authority under subsection (b) with respect to a project funded
by an eligible debt financing instrument after the State or public
authority has complied with this title with respect to the project to
the extent and in the manner that would be required if payment were to
be made under section 121.
(d) Federal Share.--The Federal share of the cost of a project
payable under this section shall not exceed the Federal share of the
cost of the project as determined under section 120.
(e) Statutory Construction.--Notwithstanding any other provision of
law, the eligibility of an eligible debt financing instrument for
reimbursement under subsection (b) shall not--
(1) constitute a commitment, guarantee, or obligation on the
part of the United States to provide for payment of principal or
interest on the eligible debt financing instrument; or
(2) create any right of a third party against the United States
for payment under the eligible debt financing instrument.
(Pub. L. 85-767, Aug. 27, 1958, 72 Stat. 900; Pub. L. 95-599, title I,
Sec. 115(b), Nov. 6, 1978, 92 Stat. 2698; Pub. L. 97-424, title I,
Sec. 107(f), Jan. 6, 1983, 96 Stat. 2103; Pub. L. 100-17, title I,
Sec. 133(b)(7), Apr. 2, 1987, 101 Stat. 171; Pub. L. 104-59, title III,
Sec. 311(a), Nov. 28, 1995, 109 Stat. 583.)
Amendments
1995--Pub. L. 104-59 amended section generally, substituting present
provisions for provisions which authorized States to use portion of
Federal highway payments to retire principal of bonds proceeds of which
were used for certain Federal highway projects.
1987--Pub. L. 100-17 inserted ``or for substitute highway projects
approved under section 103(e)(4) of this title'' before ``and the
retirement'' in first sentence.
1983--Pub. L. 97-424 inserted ``or for substitute highway projects
approved under section 103(e)(4) of this title,'' after ``highway
systems in urban areas,'' and ``or on highway projects approved under
section 103(e)(4) of this title'' after ``expenditure on such system''.
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.
