Enterprise at a Glance

September 2, 2009

BNY Mellon Enterprise Treasury Services Is Now Accepting State of CA Registered Warrants For Redemption

In an update to its policy on issuing registered warrants (effectively IOUs) for payment of certain obligations, The State of California has announced its intention to redeem IOUs beginning September 4. As a result, BNY Mellon will begin accepting these registered warrants for deposit to all accounts for credit at face value as of September 4, 2009. Warrants processed by BNY Mellon, drawn against the routing transit # 1211 4507 7, will be redeemed for face value only: no interest on these warrants will be collected by or paid to BNY Mellon on behalf of our clients.

Please note that warrants received by BNY Mellon Enterprise Treasury Services (Enterprise) prior to September 4 are subject to be returned to your client as unprocessable.

Impacts on Lockbox Services:
Enterprise will process these warrants received on behalf of your clients into our Wholesale and Retail Lockbox sites as of September 4. These warrants will be processed in kind with checks that are drawn on the 12th Federal Reserve District.

Warrants received in our sites prior to September 4 are subject to be returned to your clients as unprocessable items in their daily lockbox detail packages, or as return items later on if they are initially processed in Lockbox.

Additionally, registered warrants will be processed via our Remote Check Deposit Service as of September 4 as well.

We will provide you with further updates on this issue if additional changes occur. In the meantime, you may want to use this information to develop your own communications to your affected business clients.

If you have any additional questions, please contact your BNY Mellon Enterprise Treasury Services representative.