Section 6-716 - Savings promotion raffles.
(Section contingent upon federal regulatory and legislative action.)
§ 6-716. Savings promotion raffles.
(a) Definitions.-
(1) In this section the following words have the meanings indicated.
(2) "Eligible credit union member" means an individual member of a credit union who:
(i) Maintains a qualifying share certificate account at a credit union participating in a savings promotion raffle;
(ii) Is a member in good standing;
(iii) Is an adult; and
(iv) Is a resident of this State.
(3) "Qualifying share certificate account" means a savings account, savings program, or other time deposit offered to an eligible credit union member for a savings promotion raffle.
(4) "Savings promotion raffle" means a prize-linked savings product offered by a participating credit union to an eligible credit union member.
(b) In general.- Subject to the approval of the Commissioner, a credit union may conduct a savings promotion raffle for the exclusive benefit of eligible credit union members if:
(1) The sole consideration required for a chance to win a specified prize is the deposit of a minimum specified amount of money in a qualifying share certificate account;
(2) Each ticket or entry in the savings promotion raffle has an equal chance of being drawn;
(3) The credit union maintains books and records relating to the savings promotion raffle; and
(4) The savings promotion raffle will not:
(i) Harm the credit union's ability to operate in a safe and sound manner; or
(ii) Mislead the credit union's members.
(c) Powers of Commissioner.- The Commissioner may:
(1) Examine the conduct of a savings promotion raffle; and
(2) Issue a cease and desist order under § 6-906 of this title for a violation of this section.
[2010, chs. 627, 628]