IOU
AnIOU(abbreviatedfrom the phrase "I owe you"[1][2]) is usually an informal document acknowledgingdebt.An IOU differs from apromissory notein that an IOU is not anegotiable instrumentand does not specify repayment terms such as the time of repayment. IOUs usually specify the debtor, the amount owed, and sometimes the creditor. IOUs may be signed or carry distinguishing marks or designs to ensure authenticity. In some cases, IOUs may be redeemable for a specific product or service rather than a quantity ofcurrency,constituting a form ofscrip.[3]
California Registered Warrants
[edit]Also referred to as "IOUs" by theU.S. stateofCalifornia,the term "Registered Warrants",which specify a future payment date, is meant to differentiate these IOUs from regular, or “normal” payroll warrants which permit the holder to exchange their warrant for cash immediately. For both types of warrants, redeeming them may be delayed until funds are available. Because of this uncertainty, warrants are not negotiable instruments. Registered Warrants were issued in July 2009due to a temporary inability of the state of California to redeem its warrants.[4]Warrants are issued as payment to state employees, private businesses, local governments, taxpayers receiving tax refunds, and owners of unclaimed money.[5]
References
[edit]- ^"I O U".Oxford English Dictionary(2nd ed.). 1989.
Etymology: [= 'I owe you'.]
- ^"Origin of IOU from the pronunciation of I owe you - First Known Use: 1795".Merriam-Webster.
- ^Kenton, Will."Scrip".Investopedia.Retrieved2022-03-24.
- ^"Frequently Asked Questions about Registered Warrants (IOUs)".Archived fromthe originalon 2013-06-13.Retrieved2012-07-21.
- ^"California to Issue Registered Warrants - Implications for Financial Institutions and the State's Creditors"(PDF).PillsburyLaw.Retrieved2022-03-24.
External links
[edit]
The dictionary definition ofIOUat Wiktionary
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