[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR278.3]

[Page 961]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 278_PARTICIPATION OF RETAIL FOOD STORES, WHOLESALE FOOD CONCERNS AND 
 
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 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]

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