IOU FAQ

Nice resource from the Contra Costa Times

Q: What's a registered warrant?

A: It's an interest-bearing promise to pay an IOU issued by the state when there's not enough cash in the state's bank accounts to pay all of its General Fund spending obligations.

Q: When and how can I redeem it and get my money?

A: On or after Oct. 1, either by cashing it in at your bank or by bringing or mailing it to the State Treasurer's Office, 915 Capitol Mall, Sacramento, Calif., 95814.

Q: What does it look like?

A: It'll look like a state check but it'll have the word "REGISTERED" printed on the face, along with the issue and the maturity date, and it'll have a special endorsement stamp on the reverse.

Q: Will my bank take it sooner than Oct. 1?

A: You'll have to contact your bank to find out. Bank of America announced Wednesday it would cash IOUs through July 10. Some banks may not, however.

Q: What if it won't?

A: If you can't wait for your money until Oct. 1, you might choose to open an account at another bank that will take the IOU sooner.

Q: What about SSI/SSP, unemployment insurance or retirement benefit checks?

A: Business as usual, at least for now. The U.S. Social Security Administration will keep paying full SSI/SSP checks to recipients in July and August. Unemployment is paid out of a special account, not the General Fund, and retirement benefits will continue in regular checks.

Q: Where can I learn more?

A: The state controller's toll-free assistance line is 866-267-4255, and the state treasurer's is 888-864-2762.