N.Y. Banking Law § 9-v: Savings promotion prize giveaway

§ 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.