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In government finance, a warrant is a written order to pay that instructs a federal, state, or county government treasurer to pay the warrant holder on demand or after a specific date. Such warrants look like checks and clear through the banking system like checks, but are not drawn against cleared funds in a checking account (demand deposit ...
Paper-based payment instruments that are eligible for conversion to substitute checks include consumer (personal) checks, commercial (business) checks, money orders, traveler's checks, cash advance or convenience checks tied to credit and charge card accounts, controlled disbursement checks, and payable through drafts, in addition to government ...
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Deposited warrants are routed to a collecting bank which processes them as collection items like maturing treasury bills and presents the warrants to the government entity's treasury department for payment each business day. In the UK, warrants are issued as payment by National Savings and Investments when a premium bond is chosen.
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