IOU (debt)
Encyclopedia
An IOU is usually an informal document acknowledging debt
. An IOU differs from a promissory note
in that an IOU is not a negotiable instrument
and 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 of currency
.
of California
, 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 2009 due to a temporary inability of the state of California to meet its financial obligations. Warrants are issued as payment to state employees, private businesses, local governments, taxpayers receiving income tax refunds, and owners of unclaimed money.
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
. An IOU differs from a promissory note
Promissory note
A promissory note is a negotiable instrument, wherein one party makes an unconditional promise in writing to pay a determinate sum of money to the other , either at a fixed or determinable future time or on demand of the payee, under specific terms.Referred to as a note payable in accounting, or...
in that an IOU is not a negotiable instrument
Negotiable instrument
A negotiable instrument is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time. According to the Section 13 of the Negotiable Instruments Act, 1881 in India, a negotiable instrument means a promissory note, bill of exchange or cheque payable either...
and 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 of currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
.
California Registered Warrants
Also referred to as "IOUs" by the U.S. stateU.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, 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 2009 due to a temporary inability of the state of California to meet its financial obligations. Warrants are issued as payment to state employees, private businesses, local governments, taxpayers receiving income tax refunds, and owners of unclaimed money.
In culture
- IOU: The Debt Threat and Why We Must Defuse It is a book by leading economist Noreena HertzNoreena HertzProfessor Noreena Hertz is an English economist, author and campaigner.In her 2002 book The Silent Takeover: Global Capitalism and The Death of Democracy, Hertz warned that unregulated markets, corporate greed, and over-powerful financial institutions would have serious global consequences that...
. - Guitarist Allan HoldsworthAllan HoldsworthAllan Holdsworth is an English guitarist and composer. He has released twelve studio albums as a solo artist and played many different styles of music over a period of four decades, but first drew attention for his work in jazz fusion...
's first studio album was entitled I.O.U.I.O.U. (album)I.O.U. is the second studio album by guitarist Allan Holdsworth, released in 1982 through Luna Crack Records/I.O.U. Records and reissued in 1985 through Enigma Records... - "I.O.U.I.O.U. (song)"I.O.U." is a song from 1983 by British musical group Freeez, their most successful hit.The song scored #2 in the UK Singles Chart earlier in 1983 before reaching the top of the Billboard Hot Dance Club Play chart in the U.S., giving them their only chart-topping single on any chart in America. It...
" is a chart-topping song by FreeezFreeezFreeez were a United Kingdom dance music group from London, known initially as one of the UK's main jazz-funk bands of the early 1980s. Initiated by John Rocca, Freeez consisted of various musicians, originally with Rocca and others such as Andy Stennet Freeez were a United Kingdom dance music...
. - The Kingdom of Lovely, an Internet-based micronationMicronationMicronations, sometimes also referred to as model countries and new country projects, are entities that claim to be independent nations or states but which are not recognized by world governments or major international organizations...
, uses the "Interdependent Occupational Unit" (abbreviated as IOU) as its currencyCurrencyIn economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
. - I.O.U.S.A.I.O.U.S.A.I.O.U.S.A. is a 2008 American documentary film directed by Patrick Creadon. The film focuses on the shape and impact of the United States national debt. The film features Robert Bixby, director of the Concord Coalition, and David Walker, the former U.S...
is a documentary film about the US national debt. - In the film Saturday Night FeverSaturday Night FeverSaturday Night Fever is a 1977 drama film directed by John Badham and starring: John Travolta as Tony Manero, an immature young man whose weekends are spent visiting a local Brooklyn discothèque; Karen Lynn Gorney as his dance partner and eventual friend; and Donna Pescow as Tony's former dance...
, Tony Manero asks Annette if she has an "IOU", but means IUD (intrauterine deviceIntrauterine deviceA copper IUD is a type of intrauterine device. Most IUDs have a plastic T- or U-shaped frame which is wrapped in copper wire, with the exception of Gynefix, which is a plastic string with several copper beads, affixed to the fundus of the uterus...
). - In the mangaMangaManga is the Japanese word for "comics" and consists of comics and print cartoons . In the West, the term "manga" has been appropriated to refer specifically to comics created in Japan, or by Japanese authors, in the Japanese language and conforming to the style developed in Japan in the late 19th...
Rin-neRin-neis a Japanese manga series written and illustrated by Rumiko Takahashi. It began serialization in Shogakukan's Weekly Shōnen Sunday manga magazine on April 22, 2009...
, Rin-ne Rokudo's father gives Rin-ne many IOUs because he used all the money in his son's account. - "IOU" is a song by the Canadian rock band MetricMetric (band)Metric is a Canadian indie rock and New Wave band founded in 1998 in Toronto. The band has also at various times been based in Montreal, London, New York City and Los Angeles...
. - In the song "Lavender" from MarillionMarillionMarillion are a British rock band, formed in Aylesbury, England in 1979. Their recorded studio output comprises sixteen albums generally regarded in two distinct eras, delineated by the departure of original vocalist & frontman Fish in late 1988, and the subsequent arrival of replacement Steve...
's album Misplaced ChildhoodMisplaced ChildhoodMisplaced Childhood is the third studio album of the neo-progressive rock band Marillion. It was released in 1985 and has been their most commercially successful album, reaching number one in the and spending a total of 41 weeks on the chart, the longest chart residency of a Marillion album...
, FishFish (singer)Derek William Dick, better known as Fish, is a Scottish progressive rock singer, lyricist and occasional actor, best known as the former lead singer of Marillion.-Biography:...
sings "I.O.U. for your love" (written this way in the booklet) - In the song "Back & Forth" from Foo FightersFoo FightersFoo Fighters is an American alternative rock band originally formed in 1994 by Nirvana drummer Dave Grohl as a one-man project following the dissolution of his previous band. The band got its name from the UFOs and various aerial phenomena that were reported by Allied aircraft pilots in World War...
' album Wasting LightWasting LightWasting Light is the seventh studio album by American alternative rock band Foo Fighters, released April 12, 2011, on RCA Records. It was produced by Butch Vig and described by the band's lead vocalist and guitarist Dave Grohl as their "heaviest album yet." The title is taken from the lyrics of the...
, Dave GrohlDave GrohlDavid Eric "Dave" Grohl is an American rock musician, multi-instrumentalist, and singer-songwriter who is the lead vocalist, guitarist, and primary songwriter for Foo Fighters; the former drummer for Nirvana and Scream; and the current drummer for Them Crooked Vultures...
sings "I'm taking it back, all my IOUs", referencing back to a 2009 Foo Fighters song, "Word Forward", featured on the band's Greatest HitsGreatest Hits (Foo Fighters album)-DVD:At the main menu, there is bullet hole that you can click, and shows Dave Grohl performing "Home" on the piano.-Personnel:...
compilation.