§ 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.

   (4) "Savings promotion raffle" means a contest:

      (i) Associated with one or more qualified share certificate accounts;

      (ii) Conducted by a credit union, alone or together with other businesses; and

      (iii) In which eligible credit union members are offered one or more chances to win specified prizes.

(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) A requirement for a chance to win a specified prize is:

      (i) The deposit of a minimum specified amount of money in a qualifying share certificate account according to the terms and conditions developed for the savings promotion raffle; or

      (ii) The submission of an entry according to the terms and conditions developed for the savings promotion raffle with no deposit or purchase necessary;

   (2) Each 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) Required postings and disclosures. -- A credit union offering a savings promotion raffle under this section shall post in any location where entries may be submitted and disclose in any materials promoting the raffle a statement describing the terms and conditions of the raffle including that:

   (1) No purchase is necessary;

   (2) Making deposits or purchasing goods or services will not improve the odds of winning; and

   (3) The odds of winning will be determined based on the number of entries received.

(d) 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.

HISTORY: 2010, chs. 627, 628; 2012, ch. 66, § 6; ch. 393.