[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR278.3]

[Page 919-920]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 278--PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD CONCERNS AND INSURED FINANCIAL INSTITUTIONS--Table of Contents
 
Sec. 278.3  Participation of wholesale food concerns.

    (a) Accepting coupons. An authorized wholesale food concern may 
accept endorsed coupons from one or more specified authorized retail 
food stores, from one or more specified authorized nonprofit cooperative 
food-purchasing ventures, from one or more specified authorized group 
living arrangements, from one or more specified authorized

[[Page 920]]

drug addict or alcoholic treatment programs, from one or more specified 
authorized shelters for battered women and children, or, from one or 
more specified public or private nonprofit homeless meal providers if 
the coupons are accompanied by a properly filled-out and signed 
redemption certificate, and are not marked ``paid,'' ``canceled,'' or 
``specimen.'' A wholesaler authorized to accept coupons from an 
authorized drug addict or alcoholic treatment program, or from an 
authorized group living arrangement, or from an authorized shelter for 
battered women and children, or from one or more public or private 
nonprofit homeless meal providers may accept coupons from that treatment 
program, or group living arrangement, or shelter for battered women and 
children, or from one or more public or private nonprofit homeless meal 
providers, only in exchange for food.
    (b) Accepting legally obtained coupons. No authorized wholesale food 
concern may accept coupons if the wholesaler knows or has reasonable 
cause to believe that the coupons were not legally obtained for eligible 
food.
    (c) Redeeming coupons. An authorized wholesale food concern may 
redeem coupons, properly accepted from retailers, through the banking 
system, upon presentation of the coupons with:
    (1) The authorized retail food store's properly filled-out and 
signed redemption certificate for the coupons; and
    (2) The authorized wholesale food concern's properly filled-out and 
signed redemption certificate.
    (d) Handling retailer redemption certificates. No authorized 
wholesale food concern may alter, prepare, or complete an authorized 
retail food store's redemption certificate.

[Amdt. 136, 43 FR 43274, Sept. 22, 1978, as amended by Amdt. 173, 46 FR 
62810, Dec. 29, 1981; Amdt. 286, 52 FR 7558, Mar. 11, 1987; Amdt. 344, 
56 FR 54778, Oct. 23, 1991; Amdt. 343, 61 FR 53601, Oct. 15, 1996]