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Reminder to cash $50 million in unredeemed IOUs

Friday, January 15, 2010

Reminder to cash $50 million in unredeemed IOUs

On January 15, 2010, the State Controller John Chiang and Treasurer Bill Lockyer began mailing more than 89,000 letters to those who have not cashed their Registered Warrants (or IOUs) from last summer’s state cash crisis. The letters remind individuals and businesses to redeem an estimated $50 million worth of IOUs.

The state was forced to issue IOUs to many state payees in July 2009 to prevent a $2.8 billion cash shortage. The State Treasurer began redeeming the IOUs September 4, 2009. However, many holders of the IOUs have not yet come forward, even though there is no financial benefit of holding onto the IOUs.

Each IOU accrued interest through September 3, 2009, but holders do not earn interest past that date.

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