[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR240.7]



[Page 282-283]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 240_CASH IN LIEU OF DONATED FOODS--Table of Contents

 

Sec. 240.7  Payments to States.



    (a) Funds to be paid to any State agency under Sec. 240.3 of this 

part for disbursement to program schools shall be made available by 

means of United States Treasury Department checks. The State agency 

shall use the funds received without delay for the purpose for which 

issued.

    (b) Funds to be paid to any State agency under Sec. 240.4(a) for 

disbursement to nonresidential child care institutions and funds to be 

paid to any State agency under Sec. 240.6 for disbursement to program 

schools, service institutions, or nonresidential child care institutions 

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 pay school food authorities, 

nonresidential child care institutions, and service institutions, as 

applicable through presentation by designated State Officials of a 

Payment Voucher on Letter of Credit (Treasury Form GFO 7578) in 

accordance with procedures prescribed by FNS and approved by the United 

States Treasury Department;

    (2) Submit requests for funds on a monthly basis in such amounts as 

necessary to make payments with respect to meals served the previous 

month;

    (3) Use the funds received without delay for the purpose for which 

drawn.

    (c) FNS shall make any cash payments elected under Sec. 240.5 of 

this part by increasing the amount of the Letter of Credit or, where 

applicable, of the Federal Treasury check, in accordance with the 

information provided under Sec. 240.5(c) of this part.

    (d) Funds received by State agencies pursuant to this part for 

disbursement to program schools and to commodity schools shall not be 

subject to the



[[Page 283]]



matching provisions of Sec. 210.6 of part 210 of this chapter.