Does anyone have any information about what you're going to do if California begins issuing IOUs? Will you accept them and if so, how are you going to process them. I wasn't involved in the Ops side of banking when this happened back a few years ago. Any insight would be greatly appreciated.

According to the Franchise Tax Board website the State Controller has decided to hold the refunds for 30 days beginning February 1st instead of issuing IOUs. Here is the link:

http://ftb.ca.gov/refund_delay_2008.shtml

We already have customers asking whether they can cash warrants. Does anyone know if the warrants will be paid by the state if we take them? See this story: http://www.sacbee.com/capitolandcalifornia/story/1547004.html#Comments_Container

Here is an update: http://www.sco.ca.gov/eo_news_registeredwarrants.html

Anyone plan on accepting the registered warrants and if so, how are you going to handle them?

I can't beleive there's not more on any of the message boards about this. Our correspondent bank has told us that they will not accept these items in our cash letter to them. The Fed has been unable to provide me any information at all. My bank plans to accept the items (decision not made yet), but we do not yet know how to collect on them. It's looking like we'll have no option other than to hold them until the state will accept/pay for them in October. Another question...do these registered warrants fall under Check 21? I'd be happy to get any other information that anyone has on this.

Registered warrants are not negotiable items and not payable on demand and will not clear through normal clearing channels. Some customers may convert them and submit via remote capture but otherwise I don't see a Check 21 issue, they will be issued as paper items.

Is anyone going to be charging a fee if they will be accepting them for deposit?

However, after the stated redemption date, they may be considered "demand" instruments and therefore meet the Regulation CC definition of check. Be careful with this (See 229.2(k)(4))

Is it possible that a person due funds could request that the search warrant IOU payment be issued in the form of an ACH credit rather than a paper draft?

Just wondering because such would increase the efforts needed to control acceptance when we have decided to reject.

It's my understanding that if you had arrangements to RECIEVE an ACH, you will receive a registered warrant instead. So by default, I think the answer to your question is "no."

The registered warrants are suppose to have a unique routing number. Does anyone know what it is?

The registered warrants are supposed to have a unique routing number. Does anyone know what it is?

Registered Warrants use 121145077. Regular use 121113423.

Al