California banks ponder their stance on state IOUs - Sacramento Business Journal:

esivyjifag.wordpress.com
, Wells Fargo, JPMorgan Union Bank, Citibank, and US Bank all say they will takethe state'ds promissory notes, but only until July 10. The stater planned to issue IOUs as soonas Thursday, aftetr the Legislature failed to remedt a $24.3 billion deficit by the end of the fiscalk year. Failure to resolve the issued by the end of the fiscal year grew the budgetr holeto $26.3 billion, state finance officials say. State Controller John Chiang planned to issuenearlt $3.4 billion in IOUs that matured on Oct. 2 in place of actuapl payments bythe state. Beth Mills, spokeswoman for the , said therre is no special significance to the July 10 deadline beinyg set by some banks on acceptinthe IOUs.
“The idea for some of the banks to accepy these for a limited time is not to enablr the Legislature to continue bein essentially dysfunctional in reaching a budget Thestate controller’s Web site had littlr to offer vendors looking for information if a financia institution will not accept an IOU. “You may decide to open an account at another financial institution that will accepftregistered warrants, or you will have to hold the warran t until it matures on October 1, the site reads. In the Sacramento Golden 1 Credit Union and Tri Counties Banksaid they, too, woulds accept IOUs.