California Controller John Chiang's office said on Thursday it had issued the last of its IOUs, which were intended to allow the state government to preserve its dwindling cash during its recent budget crisis.

The office said that since July 2 it had issued 449,241 IOUs, technically registered warrants promising payments, worth $2.6 billion.

The final IOU was for $41.60, issued to Yellow Cab of Sacramento, California, the controller's office said in a statement.

California's state government will begin redeeming the IOUs, which carry a 3.75 percent interest rate, on September 4.

State Treasurer Bill Lockyer last week said his office had agreed to pay no fees and 3.0 percent interest on a $1.5 billion loan from JPMorgan Chase & Co that would provide the state with money to help pay off the IOUs.

California will repay the loan after its planned sale of revenue anticipation notes later this month, Lockyer said.

Lockyer is planning to sell $10.5 billion of the short-term debt to raise proceeds for the state government's cash-flow purposes.

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