7-1-239.10. Definitions; conduct of savings promotion raffles; application.

As used in this Code section, the term:#

1. (1)

   “Bank” means a national bank or a state chartered bank, regardless of which state issued the charter, that has federal deposit insurance.#

2. (2)

   “Credit union” means a federally chartered credit union or a state chartered credit union, regardless of which state issued the charter, that has federal deposit insurance.#

3. (3)

   “Savings promotion raffle” means a contest in which the sole consideration required for a chance of winning a designated prize is obtained by the deposit of a specified amount of money in a savings account or other savings program offered by a bank or credit union, where each ticket or entry has an equal chance of being drawn.#

A bank or credit union may conduct a savings promotion raffle, provided that the raffle is conducted in a manner that does not:#

1. (1)

   Jeopardize the ability of the bank or credit union conducting the savings promotion raffle to operate in a safe and sound manner; or#

2. (2)

   Mislead depositors about the chances of winning.#

A bank or credit union conducting a savings promotion raffle:#

1. (1)

   Shall provide each person making a deposit in a savings promotion raffle account with information regarding:#

   1. (A)

      The terms of the raffle;#

   2. (B)

      The verifiable retail value of each prize that a depositor has a chance of winning;#

   3. (C)

      The odds of a depositor winning a prize; and#

   4. (D)

      Any fees or penalties associated with such account;#

2. (2)

   Shall not charge any fees associated with the underlying savings account or other savings program in excess of the fees charged for the savings account or other savings program offered by the bank or credit union that is the most similar to such savings promotion raffle account;#

3. (3)

   May contract for and use the services of a third-party service provider to handle the administrative details of conducting a savings promotion raffle; and#

4. (4)

   Shall maintain all records the department determines are necessary to conduct an examination or audit of a savings promotion raffle.#

The provisions of this Code section applicable to credit unions shall apply to an organization composed primarily of credit unions and the provisions of this Code section applicable to banks shall apply to an organization composed primarily of banks.#