Section 6-716 - Savings promotion raffles. - Maryland Statutes

(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]