HRS §38-10
How interest on county loan funds is handled
This section says that state loan money given to counties for local improvements must be kept in separate accounts. Any interest earned on those accounts goes back to the county that the money was for.
counties
The statute, as written — Interest on loan funds
All unexpended balances of state loan funds which have been allotted to the several counties for local improvements, and also all state loan funds which are so allotted, shall be deposited by the director in a depository in separate accounts. All interest received from any depository, on account of the separate deposits, shall be credited to the respective counties.
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