Santa Cruz County Bank announced today that it will be joining big boys Bank of America and Bank of the West in accepting state issued IOUs – plus do customers one better. Rather than cutting off acceptance of the registered warrants tomorrow as some banks have elected to do, existing Santa Cruz County Bank customers can cash in their IOUs through the end of the month, and bank president David Heald said in a statement that if a budget is not passed at that time, the bank will consider extending that deadline. The bank then pockets the 3.75 percent interest, of course, but as KQED’s John Myers Twittered from Sacramento, that won’t matter much to the little guy: “Not much financial benft [sic] from IOU interest. Am told it’s 3.75% on annual basis. That means $1000 IOU worth $1009.38 in Oct.”
County Bank to Accept State IOUs
