Important notice for customers depositing CA Registered Warrants

Customers may present their registered warrants for deposit, starting September 4, 2009.

For deposited registered warrants you will not receive any accrued interest. If you wish to collect the accrued interest, you can mail your IOU to the State Treasurer's office or redeem it in person, beginning September 4, 2009. They will pay you the principal amount and interest.

By Mail: State Treasurer's Office, Attn: Registered Warrant Desk, 915 Capitol Mall, Sacramento, CA 95814

In Person: 915 Capitol Mall, Sacramento, CA Open Monday - Friday, 8:00 am, To 4:00 pm.

We will not cash registered warrants.

Do California Registered Warrants affect you business?

Beginning on or about July 2, 2009, the State of California (the "State") began issuing registered warrants in payment for certain debts. Registered warrants are the State's "promise to pay" or "IOU," accrue interest at a rate established by the Pooled Money Investment Board and are subject to special rules. The Bank is not required to accept registered warrants from its customers, whether for deposit, encashment, or otherwise.

Registered warrants are not immediately payable. They are not generally paid by the State until an announcement for their redemption by the State Treasurer or the maturity date thereon, if any. The announcement for their redemption may be up to one year from the issue registration date on the registered warrant. Even if a registered warrant has a maturity date, in the event the State does not have cash to pay the registered warrant upon maturity, the registered warrant will not be paid on the maturity date. In that event, the registered warrant will be honored subsequent to the maturity date upon an announcement for its redemption announcement; the registered warrant will continue to accrue interest.

Any registered warrants returned to the Bank will be charged back to the depositor's account. And, it is likely that the return will be in the form of an Image Replace Document in lieu of the original warrant presented for deposit. Returned warrants can create an overdraft in the depositor's account if there are not sufficient funds to cover the return and may result in insufficient fund charges.

You can obtain more information regarding this subject by contacting the Business Service Center at 1-888-382-4968.



Federal Deposit Insurance Corporation Banking products and services are provided by First Tennessee Bank National Association. Member FDIC. First Tennessee Bank National Association, and its banking division, Peoples Bank, are the same FDIC-insured institution. Deposits held under each trade name are not separately insured, but are combined to determine whether a depositor owner has exceeded the $250,000 FDIC insurance limit. All First Tennessee non-interest bearing checking accounts are fully guaranteed by the FDIC through December 31, 2012.