When used in this chapter, the following words and phrases shall have the following meanings:
(1) APPROPRIATE STATE OR FEDERAL REGULATORY AGENCY. The state or federal agency that is statutorily responsible for the supervision of all or part of the operations of a participating financial institution.
(2) DEPOSITOR. An individual member or customer of a financial institution who meets all of the following requirements:
a. Maintains a qualifying account at a financial institution participating in a savings promotion contest.
b. Is in good standing at a financial institution authorized to do business in Alabama.
c. Is 18 years of age or older.
(3) ENTRY. A chance or chances obtained by a depositor to win a designated prize or prizes in a savings promotion contest by complying with the terms and conditions of a savings promotion contest.
(4) FINANCIAL INSTITUTION. A bank, savings institution, or credit union authorized to do business in Alabama under federal or state law.
(5) PARTICIPATING FINANCIAL INSTITUTION. A financial institution, as defined above, that is sponsoring a savings promotion contest.
(6) QUALIFYING ACCOUNT. A savings account or other savings product that is offered by a participating financial institution and that meets all of the following requirements:
a. Allows deposits to be made by a depositor.
b. Is evidenced by periodic statements that are delivered to the depositor or are available to the depositor through electronic access.
c. Has an interest rate that is similar to, and not less than, the interest rates of other comparable nonqualifying accounts.
(7) SAVINGS PROMOTION ACCOUNT. A contest or promotion sponsored by a financial institution or a group of financial institutions in which a chance of winning designated prizes is obtained by a depositor when the depositor either:
a. Deposits a specified amount of money or makes a specified number of deposits into the depositor's qualifying account.
b. Participates in one or more savings products or programs.
Last modified: May 3, 2021