[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: 7CFR240.8]

[Page 276]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 240_CASH IN LIEU OF DONATED FOODS--Table of Contents
 
Sec.  240.8  Payments to program schools, service institutions, 
nonresidential child care institutions and commodity schools.

    (a) Each State agency shall promptly and equitably disburse any cash 
received in lieu of donated foods under this part to eligible program 
schools, service institutions and nonresidential child care 
institutions, as applicable. Funds withheld from States under Sec.  
240.3 and Sec.  240.4 shall be disbursed to eligible program schools, 
service institutions, and nonresidential child care institutions by 
FNSRO's in the same manner.
    (b) Unless the school food authority of a commodity school elects to 
have cash payments for donated-food processing and handling expenses 
retained for use on its behalf by the State agency, the State agency 
shall make such payments to the school food authority of such a school 
on a monthly basis in an amount equal to the number of lunches served 
(as reported in accordance with Sec.  210.13(a) of this chapter) times 
the value per lunch elected by the school food authority in accordance 
with Sec.  240.5 of this part. For the period November 11, 1981, through 
the close of the month in which this part is published in the Federal 
Register, a retroactive payment shall be made, where applicable, to the 
school food authority of a commodity school based on the number of 
lunches served during that period which meet the nutritional 
requirements specified in Sec.  210.10 of this chapter.