N.Y. BNK Law § 9-V — New York Code / Act BNK / Article 1 / Section 9-V
Savings promotion prize giveaway
Status: in_force

§ 9-v. Savings promotion prize giveaway. A banking organization\norganized under or subject to the provisions of this chapter, federal\ncredit union, federal savings bank, federal savings and loan\nassociation, or national bank association may conduct a savings\npromotion in accordance with the provisions of this section, to the\nextent it is not prohibited by federal law or regulation.\n  1. Definitions. As used in this section the following terms shall have\nthe following meanings:\n  a. The term "savings promotion" means a contest or promotion sponsored\nby a banking organization, federal credit union, federal savings bank,\nfederal savings and loan association, or national bank association in\nwhich a chance of winning designated prizes is obtained by its\ndepositors for the purposes of encouraging depositors to build and\nmaintain savings deposits.\n  b. The term "qualifying account" means a savings account, share\naccount, share certificate, or other savings product or program offered\nby a banking organization, federal credit union, federal savings bank,\nfederal savings and loan association, or national bank association\nthrough which depositors may obtain chances to win prizes in a savings\npromotion.\n  c. The term "non-qualifying account" means a savings account, share\naccount, certificate of deposit, or other savings product or program\noffered by a banking organization, federal credit union, federal savings\nbank, federal savings and loan association, or national bank association\nthat is not a qualifying account.\n  2. Rules of operation. a. Participants in a savings promotion shall\nnot be required to provide any consideration in order to obtain entries\nto win. For purposes of this paragraph, participants shall not be deemed\nto have provided consideration due to the requirement that they deposit\nmoney in a qualifying account to obtain entries to win, so long as: (i)\nthe interest rate associated with any such qualifying account is not\nreduced when compared with other comparable non-qualifying accounts\noffered by any banking organization, federal credit union, federal\nsavings bank, federal savings and loan association or national bank\nassociation, to account for the possibility of depositors winning\nspecified prizes; and (ii) no banking organization, federal credit\nunion, federal savings bank, federal savings and loan association, or\nnational bank association may charge a fee for entry. All fees charged\nin connection with such qualifying account shall be comparable with all\nfees charged in connection with other comparable non-qualifying\naccounts, if any, offered by any banking organization, federal credit\nunion, federal savings bank, federal savings and loan association, or\nnational bank association.\n  b. A savings promotion shall be conducted such that each entry in the\nsavings promotion has an equal chance of being drawn.\n  c. Participants in a savings promotion shall not be required to be\npresent at a prize drawing in order to win.\n  d. The offering of a savings promotion shall be subject to section\nthree hundred sixty-nine-e of the general business law in the same\nmanner as other promotions regulated thereunder. For purposes of the\ngeneral business law and the penal law, a savings promotion offered in\naccordance with this chapter shall not be deemed to entail consideration\nor the promotion of gambling or a lottery.\n