387.3 Indemnification. Except for loss resulting from honoring counterfeit coupons, the local department shall be responsible to the department either directly or through its agent, to the same extent the department is responsible to FNS for loss or shortage of coupons. Any payment to the department under this section shall not be reimbursable as an expenditure for the purpose of certifying eligibility, nor for distribution of or redemption of such stamps or coupons.

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