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This entry was published on 2015-09-25
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SECTION 9-V
Savings promotion prize giveaway
Banking (BNK) CHAPTER 2, ARTICLE 1
§ 9-v. Savings promotion prize giveaway. A banking organization
organized under or subject to the provisions of this chapter, federal
credit union, federal savings bank, federal savings and loan
association, or national bank association may conduct a savings
promotion in accordance with the provisions of this section, to the
extent it is not prohibited by federal law or regulation.

1. Definitions. As used in this section the following terms shall have
the following meanings:

a. The term "savings promotion" means a contest or promotion sponsored
by a banking organization, federal credit union, federal savings bank,
federal savings and loan association, or national bank association in
which a chance of winning designated prizes is obtained by its
depositors for the purposes of encouraging depositors to build and
maintain savings deposits.

b. The term "qualifying account" means a savings account, share
account, share certificate, or other savings product or program offered
by a banking organization, federal credit union, federal savings bank,
federal savings and loan association, or national bank association
through which depositors may obtain chances to win prizes in a savings
promotion.

c. The term "non-qualifying account" means a savings account, share
account, certificate of deposit, or other savings product or program
offered by a banking organization, federal credit union, federal savings
bank, federal savings and loan association, or national bank association
that is not a qualifying account.

2. Rules of operation. a. Participants in a savings promotion shall
not be required to provide any consideration in order to obtain entries
to win. For purposes of this paragraph, participants shall not be deemed
to have provided consideration due to the requirement that they deposit
money in a qualifying account to obtain entries to win, so long as: (i)
the interest rate associated with any such qualifying account is not
reduced when compared with other comparable non-qualifying accounts
offered by any banking organization, federal credit union, federal
savings bank, federal savings and loan association or national bank
association, to account for the possibility of depositors winning
specified prizes; and (ii) no banking organization, federal credit
union, federal savings bank, federal savings and loan association, or
national bank association may charge a fee for entry. All fees charged
in connection with such qualifying account shall be comparable with all
fees charged in connection with other comparable non-qualifying
accounts, if any, offered by any banking organization, federal credit
union, federal savings bank, federal savings and loan association, or
national bank association.

b. A savings promotion shall be conducted such that each entry in the
savings promotion has an equal chance of being drawn.

c. Participants in a savings promotion shall not be required to be
present at a prize drawing in order to win.

d. The offering of a savings promotion shall be subject to section
three hundred sixty-nine-e of the general business law in the same
manner as other promotions regulated thereunder. For purposes of the
general business law and the penal law, a savings promotion offered in
accordance with this chapter shall not be deemed to entail consideration
or the promotion of gambling or a lottery.