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Can you summarize 3 NJAC Chapter 37?
BANKING > SAVINGS ACCOUNT PROMOTIONS
Short Summary
This document, part of the New Jersey Administrative Code, governs savings account promotions conducted by financial institutions. It defines various terms such as ‘Commissioner’ referring to the Commissioner of the New Jersey Department of Banking and Insurance, ‘Department’ referring to the New Jersey Department of Banking and Insurance, ‘Eligible individual’ referring to a natural person who meets certain criteria, and ‘Financial institution’ referring to a New Jersey chartered bank, savings bank, savings and loan association, or credit union. The document also defines ‘Qualified account’ as a savings account or other savings program held at a financial institution, and ‘Savings account promotion’ as a raffle conducted by a financial institution in compliance with this chapter. The document specifies that for a chance to win a designated prize, the sole consideration required is the deposit of a minimum specified amount of money in a qualified account. It allows financial institutions to limit the number of entries submitted by an eligible individual and prohibits conducting savings account promotions in a way that jeopardizes the financial institution’s financial condition, unfairly discriminates, or misleads eligible individuals or the public. Financial institutions conducting such promotions are required to post the terms and conditions in locations where entries may be submitted and include them in any printed materials or electronic media advertising the promotion. The terms and conditions must include information such as no other action or purchase being necessary to enter, equal chances of winning, determination of the chance of winning based on the number of entries received, limitations on the number of entries, specific requirements on the length of time the money must remain on deposit, and the winner’s responsibility for applicable taxes. Additionally, financial institutions conducting savings account promotions under this subchapter are required to maintain books and records, including copies of all advertisements relating to the conduct of the promotion, sufficient to facilitate an independent audit or an examination by the Department of the savings account promotion.
Whom does it apply to?
All financial institutions that opt to conduct savings account promotions
What does it govern?
Savings account promotions conducted by financial institutions
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties for non-compliance or violations are mentioned.
Jurisdiction
New Jersey