Most of the larger banks have stated they will not accept them either, such as Bank of America after July 10th. California’s credit rating is now only 
two steps above “junk” status. It also has the lowest rating of any state.
This is sad for patients who need their cancer treatment or services provided by companies who take care of the disabled. The California treasurer said Monday that his office would not redeem i.o.u.’s held by third parties unless they were accompanied by a notarized bill of sale. Where is this all going to go? It almost appears to be opening another sub trading market. BD
Court-appointed lawyers, cancer patients and alcoholics in treatment programs have become the latest victims of California's financial crisis, as the state grapples with a budget deficit that has ballooned to $26bn.
The state has been forced to issue IOUs after starting its fiscal year with a huge deficit and no budget in place.
Cancer patients, people suffering from genetic diseases and drug and alcohol users in county-funded treatment programs will be affected by the cash shortage.
The state yesterday moved to control online trading in the thousands of IOUs after the notes began appearing on Craigslist, the internet advertising site. The IOUs are transferable, which means they can be bought and sold. SecondMarket, a New York-based firm that trades illiquid assets such as bankruptcy claims, private company stock and so-called toxic assets, has been gearing up to trade the IOUs if there is demand.
http://www.ft.com/cms/s/0/19f0d3e4-6b56-11de-861d-00144feabdc0.html
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