Certificate of deposit definition

New York unclaimed property laws are amended to add a definition of "gift certificate." The definition reflects current business practices and clarifies that gift cards are considered gift certificates.

The definition provides that the term "gift certificate" includes written promises or electronic payment devices that (1) are usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo, or are usable at multiple, unaffiliated merchants or service providers; (2) are issued in a specified amount; (3) may or may not be increased in value or reloaded; (4) are purchased and/or loaded on a prepaid basis for the future purchase or delivery of any goods or services; and (5) are honored upon presentation. The term does not include an electronic payment linked to a deposit account, or prepaid telephone calling cards regulated under the Public Service Law. Also, the term does not include healthcare flexible spending arrangements; nor does it include discount cards or discount programs. (S.B. 6611, Laws 2004, effective October 18, 2004.)

Copyright CCH Incorporated: Federal and State Tax Aug 10, 2004
Provided by ProQuest Information and Learning Company. All rights Reserved