Delaware Code Title 5 Sec. 933 – Prize linked savings programs
(a) For purposes of this section “savings promotion raffle” means a raffle conducted by a bank or credit union doing business in Delaware where the sole action required for a chance of winning designated prizes is the deposit of a minimum specified amount of money in a savings account or other savings program.
Terms Used In Delaware Code Title 5 Sec. 933
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
(b) Any bank or credit union doing business in this State may conduct a savings promotion raffle provided that the bank or credit union:
(1) Conducts the savings promotion raffle in a manner that ensures that each entry has an equal chance of winning the designated prize;
(2) Fully discloses the terms and conditions of the savings promotion raffle to each of its account holders;
(3) Offers an interest rate that is commensurate with the interest rate the bank or credit union offers on comparable savings accounts or savings programs that are not subject to a savings promotion raffle; and
(4) Maintains records sufficient to facilitate an audit of such savings promotion raffle.
(c) A savings promotion raffle is not a lottery for purposes of Chapter 48 of Title 29.