§ 17203 Registered Warrants Security Use

• •Registered warrants can be used as a guarantee for doing something important, like a promise to pay or do a job.
• •Banks and savings and loan places can use these warrants as security for money deposited by the government or public groups.
• •This is like using a valuable paper to promise you'll do what you said you would.

A city needs to borrow money from a bank to build a new park.

The city can use a registered warrant as a promise to the bank that they will pay the money back. This makes the bank feel safe to lend the money.