Treasury warrant definition
/What is a Treasury Warrant?
A treasury warrant is an authorization that a payment be made from a public treasury, usually in the form of a check . Government disbursements are paid with treasury warrants.
Characteristics of a Treasury Warrant
The key characteristics of a treasury warrant are as follows:
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Government-issued . A treasury warrant is issued by the treasury department of a government (national or state level).
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Authorization for payment . A treasury warrant serves as an official order for payment from government funds.
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Backed by government funds . A treasury warrant represents a claim on government resources or revenues.
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Legally enforceable . A treasury warrant is considered a legal document that obligates a government to pay the stated amount.
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FAQs
How Does a Treasury Warrant Differ from a Check?
A treasury warrant is issued by a government treasury and is drawn against authorized public funds rather than a bank account. It may require verification or fund availability checks before it can be paid. A standard check clears directly through the banking system and typically settles more quickly.
