BOSTON — The U.S. Court of Appeals for the First Circuit has sided with a mall owner who sells gift cards issued by Bank of America and against the State of New Hampshire, ruling that the sale of the cards issued by a national bank is not subject to New Hampshire's law governing gift certificates and gift cards.

According to media reports and court documents, the dispute pitted the Simon Property Group, a nationwide shopping mall firm, against the state over whether its cards issued by Bank of America could be regulated by the State gift certificate law. The law holds that gift cards are gift certificates and those gift certificates cannot expire or depreciate in value.

The Simon cards lose $2.50 per month in administrative fees starting six months after issuance and can expire after one year. Gift card proponents have argued that similar administrative fee arrangements and policies are necessary to keep the products profitable.

In his decision, U.S. District Judge Steven McAuliffe held that regulating Simon's Bank of America card, “as well as those of the contractual agreement between purchasers of the gift card and the issuing bank,” are matters for federal authority. Any limitations and fees would have to come from Congress or other federal agencies empowered to oversee national banks, he said and he urged Congress to visit the issue. – [email protected]