BofA and Wells Fargo to Accept IOUs
September 2, 2009 by Mark Ellis
Filed under Business
When California’s government ran out of cash to give to rightful income tax return recipients, it decided to instead issue thousands of IOUs that would give California time to recuperate its assets. Bank of America and Wells Fargo are now among the banks that will honor these IOUs.
Bank of America will begin accepting IOUs on September 9, immediately honoring the face value of the IOU, and interest will be paid thirty days later. No IOUs will be accepted after October 9, giving the over 100,000 Californian Bank of America customers a month to submit their IOUs. The process, though, has yet to be finalized.
Wells Fargo will begin redeeming IOUs on September 4 and will continue doing so until September 30. Any IOUs submitted after September 30 will still be accepted by Wells Fargo, but any interest accrued will not be paid. Wells Fargo and Bank of America are the two largest banks in California, with Bank of America holding onto $163 billion in 1,004 offices and Wells Fargo holding onto $112 billion in 1,005 offices.
Image: Flickr
