[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR215.5]

[Page 72-73]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 215_SPECIAL MILK PROGRAM FOR CHILDREN--Table of Contents
 
Sec.  215.5  Method of payment to States.

    (a) Funds to be paid to any State shall be made available by means 
of Letters of Credit issued by FNS in favor of the State agency. The 
State agency shall:
    (1) Obtain funds needed to reimburse School Food Authorities and 
child-care institutions through presentation by designated State 
officials of a Payment

[[Page 73]]

Voucher on Letter of Credit (Treasury Form GFO 7578) in accordance with 
procedures prescribed by FNS and approved by the U.S. Treasury 
Department; (2) submit requests for funds only at such times and in such 
amounts as will permit prompt payment of claims; (3) use the funds 
received from such requests without delay for the purpose for which 
drawn. Notwithstanding the foregoing provisions, if funds are made 
available by Congress for the operation of the Program under a 
continuing resolution, Letters of Credit shall reflect only the amount 
available for the effective period of the resolution.
    (b) [Reserved]
    (c) The State agency shall release to FNS any Federal funds made 
available to it under the Program which are unobligated at the end of 
each fiscal year. Release of funds by the State agency shall be made as 
soon as practicable but in no event later than 30 days following demand 
by FNSRO, and shall be reflected by a related adjustment in the State 
agency's Letter of Credit.

[Amdt. 13, 39 FR 28416, Aug. 7, 1974, as amended by Amdt. 14, 41 FR 
31174, July 27, 1976]