California Wants To Repay I.O.U.’s

The state of California has announced that they would like to make good on over $50 Millon in uncashed I.O.U.’s–also known as Registered Warrants–to some 59,000 residents and businesses as a result of last years budget crisis; almost half of which are due to Los Angeles County residents.

John Chiang, the state controller, promised Thursday to contact every one of the nonredeemers in an effort to “close an ugly chapter in California fiscal history.” Mr. Chiang practically begged them to drain the treasury.

“We have your money,” he said. “Ask for it. We want to give it back to you.”

California issued about 450,000 I.O.U’s totaling approximately $2.6 Billion, and starting redeeming them–with interest–this past September.  However, not everyone has cashed in yet.

With unemployment hovering around 12%, this money is desperately needed…but some may not even realize they have money coming to them.

If you would like to redeem your I.O.U., California residents & businesses must do so BEFORE September, 2010.  In the event that you don’t want to wait for CA to contact you, There are a few ways you can collect your well deserved refund:

In Person

Redeem your IOU with all accumulated interest in person at your local State Treasurer’s Office.

Via Snail Mail

You can also mail your IOU to the State Treasurer’s Office. According the state, IOU holders should receive their checks in a week to 10 days including mail time. Mail to:

Attention: Registered Warrant Desk
State Treasurer’s Office
915 Capitol Mall
Sacramento, CA 95814

Mail the IOU by itself and include a return address, especially if your address is different than the one printed on your IOU.

Deposit Directly At Bank

Some major banks with a presence in California, as well as many local community banks and credit unions are accepting these IOUs from their customers. Whether they will cash IOUs from non-customers, or if they will credit interest earned, is something that needs to be verified directly with the institution. If they do credit interest and you have an account with them, this would be the easiest and fastest method.

The following major banks will accept IOUs from their customers:
Bank of America
Bank of the West
Union Bank
US Bank
Wells Fargo

Sources: NY Times & My Money Blog