Section 5-27-3

(Effective January 1, 2018) Savings promotion contest authorized; conditions.

(a) Subject to supervision by the appropriate federal or state regulatory agency, a financial institution may conduct a savings promotion contest in accordance with this chapter for the purposes of encouraging depositors to maintain savings accounts and increase personal savings. The financial institution may join with other financial institutions to participate in a savings promotion or contest.

(b) A savings promotion contest shall be subject to all of the following conditions:

(1) Subject to any limits the financial institution may place on the number of entries that may be placed by the depositor, it is structured such that a depositor may place an entry to win a prize or prizes by doing either of the following:

a. Depositing a minimum specified amount of money or making a specified number of deposits into a qualifying account in accordance with the terms and conditions of the specific savings promotion contest.

b. Participating in one or more savings products or programs according to the terms and conditions of the savings promotion contest.

(2) The participating financial institution complies with all applicable consumer protection laws.

(3) No consideration is required as payment for a chance at winning the prize or prizes. For purposes of this subdivision, a depositor does not pay consideration if, as a requirement of participating in the savings promotion contest, the financial institution requires the depositor to deposit a specified amount of money or make a specified number of deposits into his or her account or participate in one or more savings programs or products involving his or her accounts.

(4) Each entry has an equal chance of being chosen as the winning entry.

(5) Participating depositors are not required to be present at a drawing in order to win a prize.

(6) The participating financial institution maintains books and records necessary to facilitate an audit of the savings promotion contest and, upon written request, provides those records to the appropriate federal or state regulatory authority.

(7) The savings promotion contest is conducted in a manner that protects the safety and soundness of the financial institution and does not mislead depositors.

(8) The financial institution posts online the terms and conditions of the savings promotion contest and lists each location where entries may be submitted.

(9) No fees or charges may be applied to a qualifying account that would not be applied to a substantially similar nonqualifying account.

(Act 2017-406, §3.)