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#2301855 - 09/20/24 03:20 PM Anyone have experience with Non-Payable Warrants
Okie Banker Offline
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Joined: Feb 2024
Posts: 63
Anyone have experience with Non-Payable Warrants with schools that could tell me your process? Or answer a question or two?

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#2301877 - 09/23/24 12:40 PM Re: Anyone have experience with Non-Payable Warrants Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 85,061
Galveston, TX
Wow - Warrants pretty much went by the wayside after Regulation CC came about in the late 80's. As if it looks like a check, it has to be treated as a check. What are your specific concerns? If you are the account holder institution, you should have some real strong agreements for any public entity that are issuing what they call a warrant, including having to notify you within 24 hours of presentment if they do not want them paid.
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#2301924 - 09/24/24 02:10 PM Re: Anyone have experience with Non-Payable Warrants Okie Banker
Okie Banker Offline
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Joined: Feb 2024
Posts: 63
We are working with non-payable warrants with local school districts - within the schools' fiscal year.

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#2301926 - 09/24/24 02:15 PM Re: Anyone have experience with Non-Payable Warrants Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 85,061
Galveston, TX
Well, I really have no idea what a "non-payable warrant" might be. That is not an industry term. What are you actually talking about?
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#2301933 - 09/24/24 02:46 PM Re: Anyone have experience with Non-Payable Warrants Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
OK - It looks like in OK that school districts can issue non-payable warrants based on whether or not there are specific funds appropriated for the expenditures. It appears to be an accounting issue for the school districts. I am not sure why it would impact a bank at all. If they issue a non-payable warrant, it would be processed like any other check.

What is your concern, which you have not said?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2301965 - 09/24/24 09:34 PM Re: Anyone have experience with Non-Payable Warrants Okie Banker
Okie Banker Offline
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Joined: Feb 2024
Posts: 63
This bank booked the "commitment" to pay non-payable warrants as a loan. The Controller and I've not ever seen it done this way.
Based on call report, we've seen them not as loans but as cash items in process of collections. I just wanted to see if any one else had experience with these. It's been a few years since either of us have worked with them.

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#2301966 - 09/24/24 10:49 PM Re: Anyone have experience with Non-Payable Warrants Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 85,061
Galveston, TX
Maybe you can reach out to the OBA or I think you need to get an attorney involved. The chances of another person on here from OK with that sort of experience is probably pretty slim. Someone is going to need to know OK public finance law.
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