70 



latlons, including regulations with respect to the 

 auditing of project costs, as he considers necessary 

 to effectuate the purposes of this section. 



(b) Terminal development. 



(1) Notwithstanding any other provision of this 

 title, upon certification by the sponsor of any air 

 carrier airport that such airport has, on the date of 

 submittal of the project application, all the safety 

 and security equipment required for certification 

 of such airport under section 612 of the Federal 

 Aviation Act of 1958, and has provided for access 

 to the passenger enplaning and deplaning area of 

 such airport to passengers enplaning or deplaning 

 from aircraft other than air carrier aircraft, the 

 Secretary may approve, as allowable project costs 

 of a project for airport development at such air- 

 port, terminal development (including multimodal 

 terminal development) in nonrevenue producing 

 public-use areas which are directly related to the 

 movement of passengers and baggage in air com- 

 merce within the boundaries of the airport, includ- 

 ing, but not limited to, vehicles for the movement 

 of passengers between terminal facilities or between 

 terminal facilities and aircraft. 



(2) Only sums apportioned under section 1715 

 (a) (3) (A) to the sponsor of an air carrier airport 

 shall be obligated for project costs allowable under 

 paragraph (1 ) of this subsection in connection with 

 airport development at such airport, and no more 

 than 60 per centum of such sums apportioned for 

 any fiscal year shall be obligated for such costs. 



(3) Sums apportioned under section 1715(a) (3) 

 (A) to the sponsor of an air carrier airport at 

 which terminal development was carried out on or 

 after July 1, 1970, and before the date of enactment 

 of this paragraph shall be available, subject to the 

 limitations contained in paragraph (2) of this sub- 

 section, for the immediate retirement of the prin- 

 cipal of bonds or other evidences of indebtedness 

 the proceeds of which were used for that part of 

 the terminal development at such airport the cost 

 of which is allowable under paragraph (1) of this 

 subsection subject to the following conditions: 



(A) That such sponsor submits the certifica- 

 tion required under paragraph (1) of this sub- 

 section. 



(B) That the Secretary determines that no 

 project for aiiiwrt development at such airport 

 outside the terminal area will be deferred if such 

 sums are used for such retirement. 



(C) That no funds available for airport devel- 

 opment under this Act shall be obligated for any 

 project for additional terminal development at 

 such airport for a period of three years beginning 

 on the date any such sums are used for such 

 retirement. 



(4) Notwithstanding section 1717, the United 

 States share of project costs allowable under para- 

 graph (1) of this subsection shall be 50 per centum. 



(5) The Secretary shall approve project costs 

 allowable under paragraph (1) of this subsection 

 under such terms and conditions as may be neces- 

 sary to protect the interests of the United gtates. 



(c) Disallowable project costs. 



Except as provided in subsection (b) of this sec- 

 tion, the following are not allowable projects costs: 

 (1) the cost of construction of that part of an air- 

 port development project intended for use as a 

 public parking facility for passenger automobiles; 

 or (2) the cost of construction, alteration, or repair 

 of a hangar or of any part of an airport building 

 except such of those buildings or parts of buildings 

 intended to house facilities or activities directly 

 related to the safety of persons at the airport. (Pub. 

 L. 91-258, title I, § 20, May 21, 1970, 84 Stat. 230, 

 amended Pub. L. 94-353, § 12, July 12, 1976, 90 Stat. 

 879.) 



§ 1721. Payments under grant agreements; advance 

 payments; percentage; recovery of excess and 

 advance payments. 



The Secretary, after consultation with the spon- 

 sor with which a grant agreement has been entered 

 into, may determine the times and amounts in which 

 payments shall be made under the terms of a grant 

 agreement for airport development. Payments in an 

 aggregate amount not to exceed 90 per r°ntum of 

 the United States share of the total estimated allow- 

 able project costs may be made from time to time 

 In advance of accomplishment of the airport devel- 

 opment to which the payments relate, if the sponsor 

 certifies to the Secretary that the aggregate expend- 

 itures to be made from the advance payments will 

 not at any time exceed the cost of the airport devel- 

 opment work which has been performed up to that 

 time. If the Secretary determines that the aggregate 

 amount of payments made under a grant agreement 

 at any time exceeds the United States share of the 

 total allowable project costs, the United States shall 

 be entitled to recover the excess. If the Secretary 

 finds that the airport development to which the 

 advance payments relate has not been accomplished 

 within a reasonable time or the development is not 

 completed, the United States may recover any part 

 of the advance payment for which the United States 

 received no benefit. Payments under a grant agree- 

 ment shall be made to the official or depository 

 authorized by law to receive public funds and desig- 

 nated by the sponsor. (Pub. L. 91-258. title I, §21, 

 May 21, 1970, 84 Stat. 231.) 



Section Referred to in Other Sections 



This section Is referred to In section 1720 of this title. 



§1722. PorformaMce of construction work, 

 (a) Regulations. 



The construction work on any project for airport 

 development approved by the Secretary pursuant to 

 section 1716 of this title shall be subject to inspec- 

 tion and approval by the Secretary and in accord- 

 ance with regulations prescribed by him. Such regu- 

 lations shall require such cost and progress reporting 

 by the sponsor or sponsors of such project as the 

 Secretary shall deem necessary. No such regulation 

 shall have the effect of altering any contract in con- 

 nection with any project entered into without actual 

 notice of the regulation. 



