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California Registered Warrants

 California Registered Warrants

What is a California registered warrant?
A California registered warrant is an IOU issued to individuals and other entities throughout the United States in lieu of regular payments.
 
Why is California issuing registered warrants?
California is suffering from a severe cash deficit of $3 billion. Without budgetary action, the Controller will be forced to issue individual registered warrants, also called IOUs, for many payments.
 
When will registered warrants be issued?
The State of California will begin issuing registered warrants on July 2, 2009.
 
What is the difference between a regular California warrant and a California registered warrant?
Registered warrants differ from warrants regularly issued by the State of California in that they are not immediately payable (similar to an IOU). Assuming there is adequate cash in the Treasury, those warrants may be redeemed on October 2, 2009. Both the issue and the maturity date will be printed on the warrant.
 
What does a California registered warrant look like?
A registered warrant will have the word REGISTERED printed on the face of the check, will carry a special endorsement on the back of the check, will be issued under a unique routing number and will be printed on unique check stock. Both the issue and the maturity date of October 2, 2009 will be printed on the warrant.
 
Will PlainsCapital honor the registered warrants?
PlainsCapital cannot collect or hold a California registered warrant at this time. If you do receive an IOU from the State of California, please hold it until its maturity date of October 2, 2009. Once matured, you can present it to the bank for collection at face value.*
 
Will I be paid interest on registered warrant(s)?
PlainsCapital Bank will only collect California registered warrants at face value upon maturity.* In order to collect interest on a registered warrant(s), you must hold the IOU until maturity and redeem the warrant in person or by mail to the California State Treasurer’s Office at 915 Capitol Mall, Sacramento, CA 95814. If the warrant is redeemed within one year of its maturity date, or before October 1, 2010, you will not be taxed on the earned interest.
 
How much interest is earned on a registered warrant?
The State of California will pay an interest rate of 3.75 percent annually until the warrant is redeemed.
 
What type of customer will receive a registered warrant?
Private businesses, local governments, taxpayers receiving income tax refunds, and owners of unclaimed property will all receive IOUs from the State of California.
 
When will California stop issuing the registered warrants?
Registered warrants will be issued until California has sufficient cash to cover all of its bills and redeem outstanding IOUs.
 
Who do I contact if I lose a registered warrant?
You should use the normal process for reporting lost warrants, which is contacting the agency that authorized the payment.
 
How can I find out more information?
If you have any questions about California registered warrants, contact PlainsCapital Bank Customer Service at 866.762.8392. You may also visit the California State Controller’s Office website.
 
Terms stated here are subject to change.
 
*We will collect on registered warrants at face value on the maturity date of October 2, 2009 or earlier only if the California Treasury determines there is sufficient cash available for redemption.