Section 1-211 - Savings promotion raffles. - Maryland Statutes

(Section contingent upon federal regulatory and legislative action.)
 
§ 1-211. Savings promotion raffles.
 

(a)  Definitions.-  

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

(2) "Depository institution" means any State-chartered or federally chartered financial institution, other-state bank, or foreign bank that: 

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

(ii) Is authorized to maintain qualifying deposit accounts. 

(3) "Eligible customer" means an individual customer of a depository institution who: 

(i) Maintains a qualifying deposit account at a depository institution participating in a savings promotion raffle; 

(ii) Is an adult; and 

(iii) Is a resident of this State. 

(4) "Qualifying deposit account" means a savings account, savings program, or other time deposit offered to an eligible customer for a savings promotion raffle. 

(5) "Savings promotion raffle" means a prize-linked savings product offered by a participating depository institution to an eligible customer. 

(b)  In general.-  

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

(i) 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 deposit account; 

(ii) Each ticket or entry in the savings promotion raffle has an equal chance of being drawn; 

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

(iv) The savings promotion raffle will not: 

1. Harm the depository institution's ability to operate in a safe and sound manner; or 

2. Mislead the depository institution's customers. 

(2) In addition to the requirements under paragraph (1) of this subsection, a savings promotion raffle conducted by a banking institution must be approved by the Commissioner. 

(c)  Powers of Commissioner.- 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. 
 

[2010, chs. 627, 628.]