2013 Maryland Code
FINANCIAL INSTITUTIONS
§ 6-716 - Savings promotion raffles

§6-716.

(a) (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) 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) 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) 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.