Fin. Code, § 14870

(a) For purposes of this section, the following definitions apply:

(1) “Nonqualifying account” means a deposit account, other than a demand deposit account, that is not a qualifying account.

(2) “Qualifying account” means a deposit account, other than a demand deposit account, through which a credit union’s depositors may obtain chances to win prizes in a savings promotion.

(3) “Savings promotion” means a contest or promotion to encourage savings deposits that is sponsored by one or more credit unions, or by a credit union trade association or its subsidiary in conjunction with one or more credit unions, and in which credit union depositors are offered a chance to win designated prizes.

(b) A credit union may sponsor or participate in a savings promotion if all of the following requirements are satisfied:

(1) Credit union depositors are not required to pay any fee or otherwise provide any consideration in order to enter the savings promotion.

(2) All material terms of, and fees charged by a credit union in connection with, a qualifying account are comparable to those of comparable nonqualifying accounts offered by the credit union.

(3) Each entry in the savings promotion has an equal chance of winning.

(4) Participants in the savings promotion are not required to be present at a prize drawing in order to win.

(c) For purposes of this section, a depositor’s deposit of at least a specified amount of money in a qualifying account, which is required in order to enter the savings promotion, is not consideration if the interest rate associated with the qualifying account is not reduced, as compared to comparable nonqualifying accounts offered by the credit union, to account for the possibility of winning a prize.

(d) A savings promotion offered by a credit union shall not be considered a lottery within the meaning of Section 319 or 319.3 of the Penal Code, or a raffle within the meaning of Section 320.5 of the Penal Code.