N.Y. Banking Law Section 9-V
Savings promotion prize giveaway


A banking organization organized under or subject to the provisions of this chapter, federal credit union, federal savings bank, federal savings and loan association, or national bank association may conduct a savings promotion in accordance with the provisions of this section, to the extent it is not prohibited by federal law or regulation.

1.

Definitions. As used in this section the following terms shall have the following meanings:

a.

The term “savings promotion” means a contest or promotion sponsored by a banking organization, federal credit union, federal savings bank, federal savings and loan association, or national bank association in which a chance of winning designated prizes is obtained by its depositors for the purposes of encouraging depositors to build and maintain savings deposits.

b.

The term “qualifying account” means a savings account, share account, share certificate, or other savings product or program offered by a banking organization, federal credit union, federal savings bank, federal savings and loan association, or national bank association through which depositors may obtain chances to win prizes in a savings promotion.

c.

The term “non-qualifying account” means a savings account, share account, certificate of deposit, or other savings product or program offered by a banking organization, federal credit union, federal savings bank, federal savings and loan association, or national bank association that is not a qualifying account.

2.

Rules of operation.

a.

Participants in a savings promotion shall not be required to provide any consideration in order to obtain entries to win. For purposes of this paragraph, participants shall not be deemed to have provided consideration due to the requirement that they deposit money in a qualifying account to obtain entries to win, so long as:

(i)

the interest rate associated with any such qualifying account is not reduced when compared with other comparable non-qualifying accounts offered by any banking organization, federal credit union, federal savings bank, federal savings and loan association or national bank association, to account for the possibility of depositors winning specified prizes; and

(ii)

no banking organization, federal credit union, federal savings bank, federal savings and loan association, or national bank association may charge a fee for entry. All fees charged in connection with such qualifying account shall be comparable with all fees charged in connection with other comparable non-qualifying accounts, if any, offered by any banking organization, federal credit union, federal savings bank, federal savings and loan association, or national bank association.

b.

A savings promotion shall be conducted such that each entry in the savings promotion has an equal chance of being drawn.

c.

Participants in a savings promotion shall not be required to be present at a prize drawing in order to win.

d.

The offering of a savings promotion shall be subject to General Business Law § 369-E (Use of games of chance in selling commodities)section three hundred sixty-nine-e of the general business law in the same manner as other promotions regulated thereunder. For purposes of the general business law and the penal law, a savings promotion offered in accordance with this chapter shall not be deemed to entail consideration or the promotion of gambling or a lottery.

Source: Section 9-V — Savings promotion prize giveaway, https://www.­nysenate.­gov/legislation/laws/BNK/9-V (updated Sep. 25, 2015; accessed Dec. 21, 2024).

1
Short title
2
Definitions
2‑A
Limited liability investment company
2‑B
Limited liability trust companies
4
Information to be given to social services officials, state department of social services, state department of mental hygiene, the mental...
4‑A
Banks to display signs
4‑B
Advertising
4‑C
Exemptions from certain provisions of chapter
5
Loans pursuant to the "Servicemen’s Readjustment Act of 1944
6
Investment in obligations of housing corporations indirectly guaranteed pursuant to the “Servicemen’s Readjustment Act of 1944”
6‑A
Investment in obligations of certain persons sixty-five years of age or over incurred to satisfy real property tax indebtedness
6‑C
Application forms to be made available
6‑D
Requirement to state in writing reason for denial of mortgage loan
6‑E
Graduated payment mortgages authorized
6‑F
Alternative mortgage instruments made by banks, trust companies, savings banks, savings and loan associations and credit unions
6‑G
Override of certain provisions of United States Public Law 97-320
6‑H
Reverse mortgage loans authorized
6‑I
Mortgage loans
6‑J
Proof of insurance
6‑K
Real property insurance escrow accounts
6‑L
High-cost home loans
6‑M
Subprime home loans
6‑N
Responsibility of banks for mortgages being processed for modification
6‑O
Single point of contact for modifying delinquent home loans
6‑O*2
Reverse cooperative apartment unit loans for persons sixty-two years of age or older
6‑P
Loan counseling for mortgages guaranteed by the Servicemen’s Readjustment Act of 1944
7
Payment of dividends or interest upon unclaimed deposits or shares
8
Deposits by custodian designated by administrator of veterans’ affairs, or by person certified by social security administration
9
Checks drawn against corporate funds or payable to corporations
9‑A
Defense of ultra vires
9‑B
Actions or special proceedings by superintendent or attorney-general
9‑C
Superintendent’s or attorney-general’s action for judicial dissolution
9‑D
Enforcement of section two hundred ninety-six-a of the executive law
9‑F
Geographic discrimination in making mortgage loans prohibited
9‑G
Right of set off
9‑H
Imposition of service charges prohibited
9‑I
Close-out fees prohibited in certain cases
9‑I*2
Prohibition on depositor of early withdrawal penalty in certain cases
9‑J
Disposal of records
9‑K
Sale of education loans
9‑M
Return of checks
9‑N
Trust accounts
9‑O
Mortgage loans
9‑P
Acceptance of certain checks for deposit
9‑R
Geographic restrictions
9‑S
Preauthorized electronic fund transfers
9‑T
Unsolicited mail-loan checks
9‑U
ATM transactions by persons using foreign bank accounts
9‑V
Savings promotion prize giveaway
9‑W
Standard financial aid award letter
9‑X
Mortgage forbearance
9‑X*2
Fees based on inactivity
9‑Y
Order of payment of checks and other debits, insufficient funds charges and return deposit item charges
9‑Z
Cashing of certain checks

Accessed:
Dec. 21, 2024

Last modified:
Sep. 25, 2015

§ 9-V’s source at nysenate​.gov

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