50404 Federal Register / Vol. 77, No. 162 / Tuesday, August 21, 2012 / Proposed Rules 

Supplement I to Part 1002—Official 

Interpretations 

* * * * * 

flSection 1002.14—Rules on Providing 

øAppraisal Reports¿flAppraisals and 

Valuationsfi 

14(a) Providing appraisalsfl and 

valuationsfi. 

fl1. Multiple applicants. If there is more 

than one applicant the written disclosure 

about written appraisals and valuations, and 

the copies of written appraisals and 

valuations, need only be given to one 

applicant, but it must be given to the primary 

applicant where one is readily apparent. 

14(a)(1) In general.fi 

1. Coverage. This section covers 

applications for credit to be secured by a 

flfirst filien on a dwelling, as that term is 

defined in ø§ 1002.14(c)¿fl§ 1002.14(b)(2)fi, 

whether the credit is for a business purpose 

(for example, a loan to start a business) or a 

consumer purpose (for example, øa loan to 

finance a child’s education¿fla loan to 

purchase a homefi). 

2. Renewals. øThis section¿flSection 

1002.14(a)(1)fi applies when an applicant 

requests the renewal of an existing extension 

of credit and the creditor 

øobtains¿fldevelopsfi a new øappraisal 

report¿flwritten appraisal or valuationfi. 

This section does not apply when a creditor 

uses the øappraisal report¿flwritten 

appraisals and valuationsfi that were 

previously øobtained¿fl developed in 

connection with the prior extension of credit 

in orderfi to evaluate the renewal request. 

fl3. Written. For purposes of § 1002.14, a 

‘‘written’’ appraisal or valuation includes, 

without limitation, an appraisal or valuation 

received or developed by the creditor in 

paper form (hard copy); electronically, such 

as CD or email; or by any other similar 

media. But see § 1002.14(a)(5) regarding the 

provision of copies of appraisals and 

valuations to applicants via electronic means. 

4. Waiver. Section 1002.14(a)(1) permits 

the applicant to waive the timing 

requirement that written appraisals and 

valuations be provided no later than three 

business days prior to consummation if the 

creditor provides the copy at or before 

consummation, except where otherwise 

prohibited by law. An applicant’s waiver is 

effective under § 1002.14(a) if the applicant 

provides the creditor an affirmative oral or 

written statement waiving the 3-day timing 

requirement. If there is more than one 

applicant for credit in the transaction, any 

applicant may provide the statement.fi 

ø14(a)(2)(i) Notice. 

1. Multiple Applicants. When an applicant 

that is subject to this section involves more 

than one applicant, the notice about the 

appraisal report need only be given to one 

applicant, but it must be given to the primary 

applicant where one is readily apparent.¿ 

ø14(a)(2)(ii) Delivery.¿fl14(a)(3) 

Reimbursement.fi 

ø1. Reimbursement. Creditors may charge 

for photocopy and postage costs incurred in 

providing a copy of the appraisal report, 

unless prohibited by State or other law. If the 

consumer has already paid for the report—for 

example, as part of an application fee—the 

creditor may not require additional fees for 

the appraisal (other than photocopy and 

postage costs).¿ 

fl1. Photocopy, postage, or other costs. 

Creditors may not charge for photocopy, 

postage or other costs incurred in providing 

a copy of a written appraisal or valuation in 

accordance with this section. 

2. Reasonable fee for reimbursement. The 

regulation does not prohibit creditors from 

imposing fees that are reasonably designed to 

reimburse the creditor for costs incurred in 

connection with obtaining appraisal or 

valuation services, so long they are not 

increased to cover the costs of providing 

documentation under § 1002.14. However, 

creditors may not impose fees for 

reimbursement of the costs of an appraisal 

where otherwise provided by law. For 

instance, TILA prohibits a creditor from 

charging a consumer a fee for the 

performance of a second appraisal if the 

second appraisal is required under TILA 

section 129H(b)(2) (15 U.S.C. 1639h(b)(2)).fi 

ø14(c)¿14(b)fi Definitions. 

fl14(b)(1) Consummation. 

1. State law governs. When a contractual 

obligation on the consumer’s part is created 

is a matter to be determined under applicable 

law; § 1002.14 does not make this 

determination. A contractual commitment 

agreement, for example, that under 

applicable law binds the consumer to the 

credit terms would be consummation. 

Consummation, however, does not occur 

merely because the consumer has made some 

financial investment in the transaction (for 

example, by paying a nonrefundable fee) 

unless, of course, applicable law holds 

otherwise. 

2. Credit v. sale. Consummation does not 

occur when the consumer becomes 

contractually committed to a sale transaction, 

unless the consumer also becomes legally 

obligated to accept a particular credit 

arrangement. 

14(b)(3) Valuation.fi 

1. øAppraisal reports. Examples of 

appraisal reports are:¿fl Examples of 

valuations. Examples of valuations 

include:fi 

i. A report prepared by an appraiser 

(whether or not licensed or certified), 

including written comments and other 

documents submitted to the creditor in 

support of the appraiser’s estimate or opinion 

of the property’s value. 

ii. A document prepared by the creditor’s 

staff that assigns value to the property, if a 

third-party appraisal report has not been 

used. 

iii. An internal review document reflecting 

that the creditor’s valuation is different from 

a valuation in a third party’s appraisal report 

(or different from valuations that are publicly 

available or valuations such as 

manufacturers’ invoices for mobile homes). 

fliv. Values developed pursuant to a 

methodology or mechanism required by a 

government sponsored enterprise, including 

written comments and other documents 

submitted to the creditor in support of the 

estimate of the property’s value. 

v. Values developed by an automated 

valuation model, including written 

comments and other documents submitted to 

the creditor in support of the estimate of the 

property’s value. 

vi. A broker price opinion prepared by a 

real estate broker, agent, or sales person, 

including written comments and other 

documents submitted to the creditor in 

support of the estimate of the property’s 

value.fi 

2. Other øreports¿fldocumentationfi. 

øThe term ‘‘appraisal report’’ does not cover 

all documents relating to the value of the 

applicant’s property.¿flNot all documents 

that discuss or restate a valuation of an 

applicant’s property constitute ‘‘written 

appraisals and valuations’’ for purposes of 

§ 1002.14(a).fi Examples of øreports not 

covered are:¿fldocuments that discuss the 

valuation of the applicant’s property but 

nonetheless are not ‘‘written appraisals and 

valuations’’ include:fi 

i. Internal documents, øif a third-party 

appraisal report was used to establish the 

value of the property¿flthat merely restate 

the estimated value of the dwelling contained 

in a written appraisal or valuation being 

provided to the applicantfi. 

ii. Governmental agency statements of 

appraised value flthat are publically 

availablefi. 

iii. Valuations lists that are publicly 

available (such as published sales prices or 

mortgage amounts, tax assessments, and 

retail price ranges) and valuations such as 

manufacturers’ invoices for mobile homes. 

Dated: August 14, 2012. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2012–20422 Filed 8–17–12; 4:15 pm] 

BILLING CODE 4810–AM–P 

BUREAU OF CONSUMER FINANCIAL 

PROTECTION 

12 CFR Part 1005 

[Docket No. CFPB–2012–0036] 

Electronic Fund Transfers; Intent To 

Make Determination of Effect on State 

Laws (Maine and Tennessee) 

AGENCY: Bureau of Consumer Financial 

Protection. 

ACTION: Notice of intent to make 

preemption determination. 

SUMMARY: The Bureau of Consumer 

Financial Protection (Bureau) is 

publishing notice of its intent to 

consider and address requests received 

to determine whether certain provisions 

in the laws of Maine and Tennessee 

relating to unclaimed gift cards are 

inconsistent with and preempted by the 

requirements of the Electronic Fund 

Transfer Act and Regulation E. 

DATES: Comments must be received on 

or before October 22, 2012. 

ADDRESSES: You may submit comments, 

identified by Docket No. CFPB–2012– 

0036, by any of the following methods: 


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Federal Register / Vol. 77, No. 162 / Tuesday, August 21, 2012 / Proposed Rules 50405 

1 15 U.S.C. 1693q; 12 CFR 1005.12(b). In this 

notice, these three categories are referred to 

collectively as ‘‘gift cards.’’ 

2 12 CFR 1005.12(b) (emphasis added). 

3 15 U.S.C. 1693q. 

4 Id. 

5 Id.; 12 CFR 1005.12(b). 

6The requests relating to New Jersey’s and 

Tennessee’s laws came from payment card industry 

representatives. Maine’s Office of the State 

Treasurer submitted a request relating to Maine’s 

law to the Board of Governors of the Federal 

Reserve System. The Board did not respond to 

Maine’s request before the Board’s powers and 

duties relating to consumer financial protection 

functions transferred to the Bureau on July 21, 

2011. The Bureau thus inherited responsibility for 

responding to Maine’s pending request. The Maine, 

Tennessee, and New Jersey requests are available 

for public inspection and copying, subject to the 

Bureau’s rules on disclosure of records and 

information. See 12 CFR Part 1070. 

7The New Jersey request sought a determination 

as to whether Federal law preempted the 

application to gift cards of New Jersey’s unclaimed 

property law, which deemed gift cards abandoned 

after two years of nonuse. On June 29, 2012, 

however, New Jersey amended its unclaimed 

property law to lengthen the period after which a 

gift card would be presumed abandoned from two 

years to five years. Given the intervening 

amendment to State law, the Bureau views the New 

Jersey request as moot and does not intend to issue 

a response. 

8The Bureau issues this notice pursuant to the 

authority granted to it by section 922 of the EFTA, 

15 U.S.C. 1693q; Regulation E, 12 CFR 1005.12(b); 

and sections 1022(a) and 1022(b)(1) of the DoddFrank Wall Street Reform and Consumer Protection 

Act, 12 U.S.C. 5512(a), (b)(1). 

9 15 U.S.C. 1693l–1(c)); 12 CFR 1005.20(e). 

Certain categories of cards—notably gift certificates 

that are issued in paper form only and reloadable 

cards that are not marketed or labeled as gift cards 

or gift certificates—are exempt from the expiration 

date and other gift card provisions in the EFTA. See 

15 U.S.C. 1693l–1(a)(2)(D); 12 CFR 1005.20(b). The 

Bureau’s preemption determination would not 

apply to any such categories of cards. 

10 15 U.S.C. 1693l–1(c)); 12 CFR 1005.20(e). 11See Delaware v. New York, 507 U.S. 490 (1993). 12 33 M.R.S. § 1953 (2011). The terms ‘‘gift 

obligation’’ and ‘‘stored value card’’ are defined in 

detail in the Maine Act and may differ in some 

respects from the terms ‘‘gift certificates, store gift 

cards, or general-use prepaid cards’’ as used in the 

EFTA. Id. § 1952. Under the Maine Act, ‘‘prefunded 

bank cards,’’ which generally include cards issued 

by a financial organization and usable at multiple 

merchants, are deemed abandoned after three years 

of non-use. Id. § 1953. 

• Electronic: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail/Hand Delivery/Courier: 

Monica Jackson, Office of the Executive 

Secretary, Bureau of Consumer 

Financial Protection, 1700 G Street NW., 

Washington, DC 20552. 

All submissions must include the 

agency name and docket number for this 

notice. In general, all comments 

received will be posted without change 

to http://www.regulations.gov. In 

addition, comments will be available for 

public inspection and copying at 1700 

G Street NW., Washington, DC 20552, 

on official business days between the 

hours of 10 a.m. and 5 p.m. Eastern 

Time. You can make an appointment to 

inspect the documents by telephoning 

(202) 435–7275. 

All comments, including attachments 

and other supporting materials, will 

become part of the public record and 

subject to public disclosure. Sensitive 

personal information, such as account 

numbers or social security numbers, 

should not be included. Comments will 

not be edited to remove any identifying 

or contact information. 

FOR FURTHER INFORMATION CONTACT: 

Gregory Evans or Courtney Jean, 

Counsels, Division of Research, Markets, 

and Regulations, Bureau of Consumer 

Financial Protection, at (202) 435–7700. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Electronic Fund Transfer Act 

(EFTA), as amended by the Credit Card 

Accountability and Responsibility and 

Disclosure Act of 2009, and as 

implemented by the Bureau’s 

Regulation E, authorizes the Bureau to 

consider and address requests received 

to determine whether any inconsistency 

exists between the EFTA and State law 

‘‘relating to,’’ among other things, 

‘‘expiration dates of gift certificates, 

store gift cards, or general-use prepaid 

cards.’’ 1 Regulation E provides that 

State law is inconsistent with the 

requirements of the EFTA and 

Regulation E if, among other things, the 

State law ‘‘requires or permits a practice 

or act prohibited by the federal law.’’ 2

If the State law is inconsistent, Federal 

law will preempt the State law only to 

the extent of the inconsistency.3

Furthermore, Federal law will not 

preempt a State law if the State law 

affords consumers greater protection 

than the Federal law.4 The EFTA and 

Regulation E provide that the Bureau 

shall make a preemption determination 

upon its own motion, or upon the 

request of any State, financial 

institution, or other interested party.5

The Bureau has received three 

requests for determinations as to 

whether provisions in the EFTA and 

Regulation E relating to gift card 

expiration dates preempt unclaimed 

property law provisions in Maine, 

Tennessee, and New Jersey relating to 

gift cards.6 The New Jersey request has 

been rendered moot by a subsequent 

change in State law.7 Therefore, the 

Bureau intends to issue a final 

determination in response only to the 

Maine and Tennessee requests after 

further considering the relevant 

provisions of Federal and State law as 

set forth below, as well as any 

comments received in response to this 

notice.8

II. The EFTA and Regulation E 

Regulation E, which implements the 

EFTA, generally prohibits any person 

from selling or issuing a gift certificate, 

store gift card, or general-use prepaid 

card with an expiration date unless, 

among other things, the expiration date 

for the underlying funds is at least the 

later of (i) five years after the date the 

card was issued (or, in the case of a 

reloadable card, five years after the date 

that funds were last loaded onto the 

card) or (ii) the card’s expiration date, 

if any.9 In addition, under the EFTA and 

Regulation E, such a card generally may 

not expire unless the terms of expiration 

are disclosed on the card.10

III. States’ Unclaimed Property Laws as 

Applied to Gift Cards 

General. States’ unclaimed property 

laws set forth specific periods of time 

after which custody of particular 

categories of unclaimed personal 

property transfers from the entity 

holding that property to the State for 

safekeeping. In some States, unclaimed 

gift cards are one such category of 

property. The Supreme Court has 

articulated rules of priority that 

determine which State is entitled to 

claim unclaimed intangible property. 

Such property is transferred 

presumptively to the State of the last 

known address of the property owner. If 

that State does not provide for the 

transfer of the category of property at 

issue, or if the property owner’s address 

is unknown, then custody is transferred 

to the State of incorporation of the 

entity that is obligated to make payment 

on the property.11 The Bureau 

understands that, when the address of a 

gift card owner (i.e., the gift card 

recipient) is unknown, unclaimed gift 

card funds typically transfer to the State 

of incorporation of the entity that issued 

the gift card. 

Maine’s Unclaimed Property Statute. 

Section 1953 of Maine’s Uniform 

Unclaimed Property Act (the Maine Act) 

provides that a gift obligation or storedvalue card is presumed abandoned two 

years after December 31 of the year in 

which the obligation arose or the most 

recent transaction involving the 

obligation or stored-value card occurred, 

whichever is later, including the initial 

issuance and any subsequent addition of 

value to the obligation or stored-value 

card.12 A business (e.g., a gift card 

issuer) that has issued gift cards that 

Maine presumes to be abandoned as of 

the end of a calendar year must report 


pmangrum on DSK3VPTVN1PROD with PROPOSALS-1
50406 Federal Register / Vol. 77, No. 162 / Tuesday, August 21, 2012 / Proposed Rules 

13 Id. § 1958. Under Maine’s law, only sixty 

percent of the gift obligation’s or stored-value card’s 

face value is reportable as unclaimed property. Id. 

§ 1953. In addition, a gift card sold on or after 

December 31, 2011, is not presumed abandoned if 

it was among those sold by an issuer that sold no 

more than $250,000 in gift cards during the 

preceding calendar year. Id. 

14 Id. § 1961. 

15 Id. 

16Pursuant to Tennessee’s Consumer Protection 

Act, the term ‘‘gift certificate’’ excludes prepaid 

telephone calling cards and prepaid cards usable at 

multiple, unaffiliated merchants or at automated 

teller machines (i.e., ‘‘open-loop’’ gift cards). Tenn. 

Code Ann. § 47–18–127(e) (2012). In this discussion 

of Tennessee’s statute, ‘‘gift certificate’’ refers to the 

concept as used in Tennessee law. Aside from the 

exclusion for ‘‘open-loop’’ gift cards and prepaid 

telephone calling cards, the Bureau believes that 

‘‘gift certificate’’ for purposes of Tennessee law 

generally includes gift cards and other similar 

electronic devices. However, the Tennessee 

definition of ‘‘gift certificate’’ may differ in some 

respects from that used in the EFTA. 

17 Id. § 66–29–135. 

18 Id. 

19 Id. § 66–29–113. The amount presumed 

abandoned is the price paid by the purchaser, 

except that for gift certificates issued after 

December 31, 1996, and redeemable in merchandise 

only, the amount presumed abandoned is sixty 

percent of the purchase price. Id. § 66–29–135. The 

Bureau notes that a Tennessee trial court held in 

2001 that Tennessee law requires transfer only of 

the right to claim merchandise by using the gift card 

(i.e., not transfer of funds). Service Merchandise Co. 

v. Adams, No. 97–2782–III, 2001 WL 34384462 

(Tenn. Ch. Ct. June 29, 2001). The statute 

nevertheless appears to require the transfer of 

funds. 

20 Id. § 66–29–116. 

21 Id. 

22Pursuant to the EFTA and Regulation E, 

inactivity fees or other service charges generally 

may not be assessed on gift cards unless there has 

been no activity on the gift card during the 12- 

month period ending on the date on which the fee 

is imposed. 15 U.S.C. 1693l–1; 12 CFR 1005.20(d). 

State laws may protect unused gift cards from 

inactivity fees for longer periods or indefinitely. For 

example, Maine law provides that fees or charges 

may not be imposed on gift obligations or storedvalue cards, except that the issuer may charge a 

transaction fee for the initial issuance and for each 

occurrence of adding value to an existing gift 

obligation or card. 33 M.R.S. § 1953. Under 

Tennessee law, inactivity fees or other service 

charges are prohibited for two years after a gift 

certificate is issued. Tenn. Code Ann. § 47–18– 

127(b). Based on industry outreach, the Bureau 

understands that inactivity fees are rare in today’s 

market, particularly for closed-loop cards (i.e., cards 

usable only at a particular merchant or group of 

merchants). 

and transfer the gift card funds to Maine 

by May 1 of the following year.13 Maine 

thereafter assumes custody of and 

responsibility for the unclaimed gift 

cards, and the Maine Act states that the 

gift card issuer is relieved of all liability 

arising thereafter with respect to the 

property.14 A business that has 

transferred unclaimed gift card funds to 

Maine may elect to make payment to the 

apparent owner of the card (i.e., may 

honor the gift card) and may request 

reimbursement by filing an affidavit 

with the State.15 The Bureau 

understands that, if an issuer were to 

decline to honor the gift card, the 

consumer could attempt to reclaim his 

or her property by submitting an 

unclaimed property claim form to the 

Office of the State Treasurer of Maine. 

To properly submit an effective claim, 

the consumer would need to determine 

that Maine is the appropriate State to 

contact, which might not be obvious if 

the consumer lives and uses the card in 

another State. Based on outreach, the 

Bureau understands that Maine collects 

approximately $2.6 million per year in 

funds relating to unclaimed gift cards. 

Tennessee’s Unclaimed Property 

Statute. Section 66–29–135 of 

Tennessee’s Uniform Disposition of 

Unclaimed (Personal) Property Act (the 

Tennessee Act) provides that a ‘‘gift 

certificate’’ 16 issued in the ordinary 

course of an issuer’s business is 

presumed abandoned if it remains 

unclaimed by the owner upon the 

earlier of: (1) The expiration date of the 

certificate; or (2) two years from the date 

the certificate was issued.17 A gift 

certificate is exempt from the Tennessee 

Act if the issuer of the certificate does 

not impose a dormancy charge and 

when the gift certificate (1) 

conspicuously states that the gift 

certificate does not expire; (2) bears no 

expiration date; or (3) states that any 

expiration date is not applicable in 

Tennessee.18 An issuer of gift 

certificates that Tennessee presumes to 

be abandoned as of the end of a calendar 

year must report and transfer the gift 

certificate funds to Tennessee by May 1 

of the following year.19 Tennessee 

thereafter assumes custody and 

responsibility for the unclaimed gift 

certificates, and the issuer is relieved of 

all liability arising thereafter with 

respect to the property.20 A business 

that has transferred unclaimed gift 

certificate funds to Tennessee may elect 

to honor the gift certificate and may 

request reimbursement by filing a 

request with the State.21 The Bureau 

understands that, if an issuer were to 

decline to honor the gift certificate, the 

consumer could attempt to reclaim the 

funds by submitting an unclaimed 

property claim form to the Tennessee 

Department of Treasury. As is true for 

Maine, to properly submit an effective 

claim, the consumer would need to 

determine that Tennessee is the 

appropriate State to contact, which 

might not be obvious if the consumer 

lives and uses the gift certificate in 

another State. The Bureau does not have 

precise data concerning the amount of 

money that Tennessee collects each year 

in funds relating to unclaimed gift 

certificates. Given the limited card types 

that appear to be subject to Tennessee’s 

law, however, the Bureau believes that 

the amount is likely to be relatively 

small. 

IV. Request for Comment 

Pursuant to the EFTA, the Bureau 

intends to consider and address the 

requests received to determine whether 

the application of Maine’s and 

Tennessee’s unclaimed property statutes 

to gift cards is inconsistent with the 

EFTA and Regulation E. In making its 

determination, the Bureau will consider 

whether Maine’s and Tennessee’s 

statutes may afford consumers greater 

protection than Federal law. The Bureau 

invites interested persons to submit 

comment on all or any aspects of this 

notice. 

Maine’s and Tennessee’s laws 

presume gift cards to be ‘‘abandoned’’ 

and release businesses from the 

obligation to honor the gift cards during 

a time period when, pursuant to Federal 

law, consumers should be able to use 

the cards. The Bureau seeks public 

comment on whether there is any 

inconsistency between these provisions 

of state law and the expiration date 

provisions of the EFTA and Regulation 

E and, if so, on the nature of the 

inconsistency. As a related matter, the 

Bureau solicits public comment on 

whether and how gift card issuers can 

comply with both Federal and State law, 

for example by honoring unclaimed 

cards and requesting reimbursement 

from Maine or Tennessee. 

The Bureau further seeks comment on 

whether Maine’s and Tennessee’s 

unclaimed property statutes as applied 

to gift cards afford consumers greater 

protection than Federal law. For 

example, the Bureau notes that, once the 

funds corresponding to a consumer’s 

unclaimed gift card transfer to Maine or 

Tennessee, those funds presumably are 

protected from the risk of loss in the 

event that an issuer later files for 

bankruptcy. Unclaimed gift cards that 

have transferred to Maine or Tennessee 

also should be protected from any 

inactivity fees that might otherwise be 

assessed on an unused card, to the 

extent permitted by Federal or State 

law.22 Finally, a consumer would have 

an indefinite opportunity to attempt to 

reclaim his or her unclaimed gift card 

funds from the State and, if successful, 

might be entitled to receive cash from 

the State, rather than the right to obtain 

merchandise. 

On the other hand, if unclaimed gift 

card funds were transferred to Maine or 

Tennessee after two years of non-use, 

and if issuers were not required to 

honor the card, then a consumer might 


pmangrum on DSK3VPTVN1PROD with PROPOSALS-1
Federal Register / Vol. 77, No. 162 / Tuesday, August 21, 2012 / Proposed Rules 50407 

23See N.J. Retail Merchants Ass’n v. SidamonEristoff, 669 F.3d 374 (3d Cir. 2012), reh’g denied 

(3d Cir. Feb. 24, 2012). 

24 Id. 

25 Id. 

only be able to redeem his or her 

property by submitting an unclaimed 

property claim form to the State. At a 

minimum, a consumer first would need 

to determine that the card should still 

have been usable, and then would need 

to determine which State to contact to 

reclaim funds corresponding to the 

unclaimed gift card. As discussed 

above, when an issuer has no record of 

the gift card owner’s name, unused 

funds for the card will transfer to the 

State of incorporation of the gift card 

issuer. Thus, for example, a consumer 

who purchases and uses in New York a 

gift card that was issued by a company 

incorporated in Maine or Tennessee 

may be required to contact Maine or 

Tennessee, rather than New York, to 

attempt to claim funds that have 

transferred to the State. It is not clear, 

however, how the consumer would 

know to do this. In addition, the 

consumer would be required to spend 

time and perhaps money completing 

and submitting any required claim 

form(s), as well as to wait perhaps 

several weeks or months to receive his 

or her property. Finally, the Bureau 

understands that Maine’s and 

Tennessee’s existing processes for 

claiming unclaimed property generally 

rely on property owners’ names and 

addresses. It may be difficult for gift 

card owners to locate and successfully 

claim their property under those 

processes, particularly if gift card 

issuers do not know, and thus do not 

report to the State, the names of the 

consumers who own the unclaimed 

cards (i.e., the gift card recipients). 

The Bureau notes that at least one 

judicial decision has weighed the 

relative benefits to consumers of the 

EFTA and Regulation E and States’ 

unclaimed property laws as applied to 

gift cards. In January 2012, the U.S. 

Court of Appeals for the Third Circuit 

upheld a decision by the U.S. District 

Court for the District of New Jersey that 

declined to preliminarily enjoin the 

application to gift cards of New Jersey’s 

unclaimed property law, which at the 

time presumed gift cards abandoned 

after two years of non-use.23 The District 

Court concluded, and the Third Circuit 

agreed, that the plaintiffs were unlikely 

to prove that Federal law preempted 

New Jersey’s unclaimed gift card law. 

The Third Circuit identified certain 

benefits of New Jersey’s law that, in the 

court’s view, weighed in favor of a 

conclusion that New Jersey’s law was 

more protective of consumers than the 

EFTA and Regulation E.24 Specifically, 

once New Jersey received unclaimed gift 

card funds, it would have held them for 

consumers indefinitely (i.e., not merely 

for the minimum five years required 

under Federal law). In addition, a 

consumer who submitted a successful 

claim for his or her funds would have 

received cash back from the State, as 

opposed to a card solely redeemable for 

goods or services.25 The Bureau notes 

that the court reached its conclusion in 

the absence of any specific guidance or 

determination from the Board of 

Governors of the Federal Reserve 

System or from the Bureau. 

As noted, the Bureau invites public 

comment on all or any aspects of this 

notice, including on the application of 

Maine’s and Tennessee’s unclaimed 

property laws to gift cards, on the nature 

of any inconsistency between those laws 

and the expiration date provisions of the 

EFTA and Regulation E, and on whether 

Maine’s and Tennessee’s laws afford 

consumers greater protection than 

Federal law. After the close of the 

comment period, the Bureau will 

analyze any comments received, 

conduct any further analysis that may 

be required, and will publish a notice of 

final action in the Federal Register. 

Dated: August 16, 2012. 

Richard Cordray, 

Director, Bureau of Consumer Financial 

Protection. 

[FR Doc. 2012–20531 Filed 8–20–12; 8:45 am] 

BILLING CODE 4810–AM–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2012–0855; Directorate 

Identifier 2011–NM–136–AD] 

RIN 2120–AA64 

Airworthiness Directives; The Boeing 

Company Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to supersede an 

existing airworthiness directive (AD) 

that applies to all The Boeing Company 

Model 737–100, –200, –200C, –300, 

–400, and –500 series airplanes. The 

existing AD currently requires repetitive 

inspections to detect cracking of the 

lower corners of the door frame and 

cross beam of the forward cargo door, 

and corrective actions if necessary. The 

existing AD also requires eventual 

modification of the outboard radius of 

the lower corners of the door frame and 

reinforcement of the cross beam of the 

forward cargo door, which would 

constitute terminating action for the 

existing repetitive inspections. Since we 

issued that AD, we have received 

additional reports of fatigue cracking in 

the radius of the lower frames and in the 

lower number 5 cross beam of the 

forward cargo door. This proposed AD 

would revise the compliance times for 

the preventive modification; add certain 

inspections for cracks in the number 5 

cross beam of the forward cargo door; 

and add inspections of the number 4 

cross beam if cracks are found in the 

number 5 cross beam, and corrective 

actions if necessary. For certain 

airplanes, this proposed AD would also 

add a one-time inspection for airplanes 

previously modified or repaired, and a 

one-time inspection of the 

reinforcement angle for excessive 

shimming or fastener pull-up, and 

corrective actions if necessary. We are 

proposing this AD to prevent fatigue 

cracking of the lower corners of the door 

frame and number 5 cross beam of the 

forward cargo door, which could result 

in rapid depressurization of the 

airplane. 

DATES: We must receive comments on 

this proposed AD by October 5, 2012. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, by any of the following 

methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: Deliver to Mail 

address above between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this AD, contact Boeing Commercial 

Airplanes, Attention: Data & Services 

Management, P.O. Box 3707, MC 2H–65, 

Seattle, Washington 98124–2207; 

telephone 206–544–5000, extension 1; 

fax 206–766–5680; Internet https:// 

www.myboeingfleet.com. You may 

review copies of the referenced service 

information at the FAA, Transport 

Airplane Directorate, 1601 Lind Avenue 

SW., Renton, Washington. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 


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