Big banks to take California IOUs until July 10 - Los Angeles Business from bizjournals:

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, Wells Fargo, , Unio Bank, Citibank, and US Bank all say they will takethe state'ws promissory notes, but only until July 10. Palo Alto-basef has also said it would honorthe IOUs, but many othersx are still pondering whether they will. The state planned to issue IOUs as soon asJuly 2, after the Legislature . Failure to resolve the issue by the end of the fiscalp year grew the budget holeto $26.3 billion, state financre officials say. State Controller John Chiang planned to issuenearly $3.4 billion in IOUs that mature on Oct.
2 in placr of actual payments by the Beth Mills, spokeswoman for the , said there is no specialo significance to the July 10 deadline being set by some banks on accepting the IOUs. “The idea for some of the bankes to accept these for a limited time is not to enabl e the Legislature to continue beinhg essentially dysfunctional in reaching a budget Thestate controller’s Web site had little to offerd vendors looking for information if a financial institutionm will not accept an IOU. “Yoyu may decide to open an account at anothet financial institution that will acceptregisterec warrants, or you will have to hold the warranyt until it matures on October 1, the site reads.
Private Bank of the Peninsulz CEO Ken Brenner said the bank decides Wednesday not to honorthe warrants. “W see ourself as a smallk bank and not in a position to take IOUs to run our Brenner said. The institution holds about $270 milliobn in assets. Chairman Alan Hyman said his bank wouldc accept registered warrants from existing with caveats. For smaller customers, the bank is determinintg whether to assess ahandling fee, as well as a cap on how much the bank will Hyman offered $5,000 a month per customer as a ballparok figure on the limit.
Larger bank customers with warrants ranginhgfrom $50,000 to about $200,000, primarily socialk services providers, would be dealtf with individually. “We’re not overly concerned,” said Hyman, referrint to the state’s abilithy to make good on the warrantseat maturation. “I would say we’re cautious. We want to see how the industry as a whole evaluates the At this pointwe don’t want to put a bind on the smallerr customer that’s dependent on this moneuy for their income.
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