(a) It shall be the duty of each county to properly maintain all state aid roads in their respective counties after construction of any such roads with state aid moneys.
(b)
(1) If essential maintenance is not properly and regularly carried on, in the opinion of the state aid engineer, then notice thereof shall be given in writing to the county judge in default.
(2) If maintenance is not done and continued within sixty (60) days from date of notice, then the state aid engineer may proceed to have done the necessary maintenance and repair work on the road and charge the work to any funds in the State Aid Road Fund in the State Treasury allocated to the county.
(3) If failure to maintain continues, then the county shall be no longer eligible for state aid until proper maintenance is resumed by it. Notice of withdrawal of state aid shall be duly given the Auditor of State and Treasurer of State. However, such ineligibility shall not affect payment from the State Aid Road Fund of progress and final estimates on contracts awarded prior to notice of ineligibility.
(c) When any county road, or sections of county roads constructed under the provisions of this subchapter, as amended, is within an area annexed to any first or second-class city or incorporated town, the county shall thereafter be relieved of the responsibility for maintaining the road or sections of roads as required in this subchapter, and the responsibility for maintenance thereof shall be transferred, at the time of annexation, to the annexing city or incorporated town.
(d) Whenever any county is ineligible for state aid under the provisions of this subchapter for a continuous period of five (5) years, then the county shall forfeit and no longer be entitled to any part of the funds in the State Aid Road Fund theretofore allocated to it. The balance of such funds as theretofore allocated to it shall be reallocated pro rata among all other eligible counties in the same relative proportions as those specified for distribution of funds to the respective counties.