Franklin gives break to those paid in IOUs.

SAN MATEO, Calif. -- A bank affiliated with Franklin Resources Inc., the mutual fund group, is offering relief to California state employees who are being paid with IOUs during a prolonged budget crisis.

Franklin Bank said it temporarily reduced state employees' Visa card rates to 7%, effective last Thursday. Franklin's standard classic Visa card charges 16.9%; the gold card, 15.9%; and a no-annual-fee card, 19.8%.

In addition, Franklin will not require state employees to make card payments during the budget crisis. The policy will be reviewed after three months if there is still no state budget.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER