(a) A gift certificate constitutes value held in trust by the issuer of the gift certificate on behalf of the beneficiary of the gift certificate. The value represented by the gift certificate belongs to the beneficiary, or to the legal representative of the beneficiary to the extent provided by law, and not to the issuer.
(b) An issuer of a gift certificate who is in bankruptcy shall continue to honor a gift certificate issued prior to the date of the bankruptcy filing on the grounds that the value of the gift certificate constitutes trust property of the beneficiary.
(c) (1) This section does not alter the terms of a gift certificate. The terms of a gift certificate may not make its redemption or other use invalid in the event of a bankruptcy.
(2) This section does not require, unless otherwise required by law, the issuer of a gift certificate to:
(A) Redeem a gift certificate for cash.
(B) Replace a gift certificate that has been lost or stolen.
(C) Maintain a separate account for the funds used to purchase the gift certificate.
(d) (1) This section does not create an interest in favor of the beneficiary of the gift certificate in any specific property of the issuer.
(2) This section does not create a fiduciary or quasi-fiduciary relationship between the beneficiary of the gift certificates and the issuer, unless otherwise provided by law.
(3) The issuer of a gift certificate has no obligation to pay interest on the value of the gift certificate held in trust under this section, unless otherwise provided by law.
(Added by Stats. 2002, Ch. 997, Sec. 1. Effective January 1, 2003.)