UPDATE 1-California RAN sale set for Sept 21-23

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SAN FRANCISCO, Sept 1 (Reuters) - California plans to sell $10.5 billion of revenue anticipation notes Sept. 21-23 to raise money for the state government's cash-flow needs, a spokesman for State Treasurer Bill Lockyer said on Tuesday.

Spokesman Tom Dresslar said the sale's retail period will be held Sept. 21 and Sept. 22, followed by an institutional order period Sept. 23.

The treasurer's office has $10.5 billion as its "operative number" for the short-term debt it will sell unless Gov. Arnold Schwarzenegger and lawmakers agree to reduce that amount, which was urged by the state controller, Dresslar said.

Separately, Thomson Reuters MMD (www.TM3.com) reported California's RAN sale would be led by JPMorgan Chase and Co (JPM.N), which last week agreed to lend the state $1.5 billion to help it pay the IOUs it had issued during its recent budget crisis to conserve dwindling cash.

MMD also said the municipal bond market expects California to sell some form of long-term, general obligation debt -- both tax-exempt and Build America Bonds -- worth at least $1 billion. No details on the timing of that deal were available. (Editing by James Dalgleish)