Update at a Glance

September 1, 2009

BNY Mellon 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. 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 prior to this date are subject to be returned to you as unprocessable.

Impacts on Lockbox Services:
BNY Mellon Treasury Services will process these warrants received on behalf of our 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 you as unprocessable items in your daily lockbox detail packages.

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.

Please contact your BNY Mellon Treasury Services representative if you have any additional questions.