STATE OF NEW YORK
________________________________________________________________________
7341
2013-2014 Regular Sessions
IN ASSEMBLY
May 13, 2013
___________
Introduced by M. of A. ROBINSON, RAIA -- read once and referred to the
Committee on Banks
AN ACT to amend the banking law, in relation to authorizing credit
unions to conduct savings promotion prize giveaways
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new section 9-v to
2 read as follows:
3 § 9-v. Savings promotion prize giveaway. A banking organization
4 organized under or subject to the provisions of this chapter may conduct
5 a savings promotion in accordance with the provisions of this section,
6 to the extent it is not prohibited by federal law or regulation.
7 1. Definitions. As used in this section the following terms shall have
8 the following meanings:
9 a. The term "savings promotion" means a contest or promotion sponsored
10 by a banking organization in which a chance of winning designated prizes
11 is obtained by the deposit of a specified amount of money in a savings
12 account, share account, share certificate, or other savings product or
13 program.
14 b. The term "qualifying account" means a savings account, share
15 account, share certificate, or other savings product or program offered
16 by a banking organization through which depositors may obtain chances to
17 win prizes in a savings promotion by depositing specified sums of money.
18 c. The term "non-qualifying account" means a savings account, share
19 account, certificate of deposit, or other savings product or program
20 offered by a banking organization that is not a qualifying account.
21 2. Rules of operation. a. Participants in a savings promotion shall
22 not be required to provide any consideration in order to obtain entries
23 to win. For purposes of this paragraph, participants shall not be deemed
24 to have provided consideration due to the requirement that they deposit
25 money in a qualifying account to obtain entries to win, so long as: (i)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10869-01-3
A. 7341 2
1 the interest rate associated with any such qualifying account is not
2 expressly reduced to account for the possibility of depositors winning
3 specified prizes; and (ii) any fees charged in connection with such
4 qualifying account are approximately of a kind and approximately in an
5 amount charged in connection with comparable non-qualifying accounts, if
6 any, offered by the banking organization.
7 b. A savings promotion shall be conducted such that each entry in the
8 savings promotion has an equal chance of being drawn.
9 c. Participants in a savings promotion shall not be required to be
10 present at a prize drawing in order to win.
11 d. The offering of a savings promotion shall be subject to section
12 three hundred sixty-nine-e of the general business law in the same
13 manner as other promotions regulated thereunder. For purposes of the
14 general business law and the penal law, a savings promotion offered in
15 accordance with this chapter shall not be deemed to entail consideration
16 or the promotion of gambling or a lottery.
17 § 2. Section 96 of the banking law is amended by adding a new subdivi-
18 sion 15 to read as follows:
19 15. To engage in a "savings promotion raffle" in accordance with
20 section nine-v of this chapter.
21 § 3. Section 234 of the banking law is amended by adding a new subdi-
22 vision 26 to read as follows:
23 26. To engage in a "savings promotion raffle" in accordance with
24 section nine-v of this chapter.
25 § 4. Section 383 of the banking law is amended by adding a new subdi-
26 vision 17 to read as follows:
27 17. To engage in a "savings promotion raffle" in accordance with
28 section nine-v of this chapter.
29 § 5. Section 454 of the banking law is amended by adding a new subdi-
30 vision 37 to read as follows:
31 37. To engage in a "savings promotion raffle" in accordance with
32 section nine-v of this chapter.
33 § 6. This act shall take effect immediately.
