California's IOUs are still owned

Plus the fun factor that the state taxpayers have to pay interest on these IOUs in the fall. Have fun California.

But across California on Tuesday, many vendors who had been told they would receive the i.o.u.’s instead of actual money said they had not yet received them. And if they do not arrive soon, they may be hard to turn into cash. Last week, the state began issuing the warrants for the second time since the Great Depression. It ran out of cash to pay its bills as the Legislature and the governor failed to resolve the state’s $26 billion budget deficit. Millions of dollars in i.o.u.’s, known as registered warrants, began rolling off the controller’s presses in lieu of checks to pay taxpayers, vendors and local governments. The warrants offer a 3.75 percent interest rate when they mature in October. In most cases, banks around the state have agreed to honor the warrants only until Friday, in hopes that the deadline will prompt lawmakers to reach an agreement. As of Tuesday, 71,810 warrants to the tune of $108 million had been printed, but many had not yet been received.

Good to see the banks smarten up and not take any more of these stupid IOUs