Savings promotion raffles

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    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Depository institution” means a financial institution that:

            (i)    Is located in this State or maintains a branch in this State; and

            (ii)    Is authorized to maintain qualifying accounts.

        (3)    “Eligible customer” means an individual who:

            (i)    Maintains a qualifying account at a depository institution;

            (ii)    Is an adult; and

            (iii)    Is a resident of this State.

        (4)    “Qualifying account” means a savings account, share account, or other savings product or program:

            (i)    Offered by a depository institution;

            (ii)    Insured by the Federal Deposit Insurance Corporation, the National Credit Union Administration, or a credit union share guaranty corporation that is approved by the Commissioner; and

            (iii)    Through which eligible customers may obtain chances to win prizes in a savings promotion raffle.

        (5)    “Savings promotion raffle” means a contest in which:

            (i)    The sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a qualifying account; and

            (ii)    Each ticket or entry has an equal chance of being drawn.

    (b)    A depository institution may conduct a savings promotion raffle for the exclusive benefit of eligible customers if:

        (1)    The depository institution maintains books and records relating to the savings promotion raffle; and

        (2)    The savings promotion raffle will not:

            (i)    Harm the depository institution’s ability to operate in a safe and sound manner; or

            (ii)    Mislead the depository institution’s customers.

    (c)    Except as preempted by federal law, the Commissioner may:

        (1)    Examine the conduct of a savings promotion raffle; and

        (2)    Issue a cease and desist order under § 5–808 of this article for a violation of this section.


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