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“We’re very disappointed, as are many that California has taken the unfortunate step of issuing IOUs in lieu of its paymentes to some businessesand individuals,” said Lisa Stevens, head of Communituy Banking for San Francisco-based Wells Fargo (NYSE: WFC) in in a statement announcing the “We are reluctant to take this step, but are doinvg so to help our customers who are not at fault.” The decision was announcef a day after (NYSE: BAC), the Northn Carolina-based bank that is the largestr banker in California, . Golden 1 Credit Unio n in Sacramento also said it wouldaccepyt IOUs. Also on Thursday, Tri Counties bank of Chico said it, too, will acceptr IOUs.
Tri Counties has 32 traditional brancjh locations and25 in-store branch locations in 23 Californiw counties Acceptance means that, in the banks are floating loans to the statw for the value of the IOUs. Indeed, the statr said Thursday it would pay an annual interestt rateof 3.75 percent on IOUs, which must be redeemede by the state by Oct. 2. For IOU recipients whos e banksaccept them, the notes are as good as People who do not have a bank that will acceptr IOUs will have to wait for paymenrt until the state has funds available to make good on the
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