Title 12 — Banks and Banking
Chapter 2 — National Banks
§ 25a. Participation by national banks in lotteries and related activities
Statutory text
Prohibited activities
A national bank may not—
deal in lottery tickets;
deal in bets used as a means or substitute for participation in a lottery;
announce, advertise, or publicize the existence of any lottery; 1
announce, advertise, or publicize the existence or identity of any participant or winner, as such, in a lottery.
Use of banking premises prohibited
A national bank may not permit—
the use of any part of any of its banking offices by any person for any purpose forbidden to the bank under subsection (a), or
direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a).
Definitions
As used in this section—
The term “deal in” includes making, taking, buying, selling, redeeming, or collecting.
The term “lottery” includes any arrangement, other than a savings promotion raffle, whereby three or more persons (the “participants”) advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the participants (the “winners”) will receive by reason of their advances more than the amounts they have advanced, the identity of the winners being determined by any means which includes—
a random selection;
a game, race, or contest; or
any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possibility that he may become a winner.
The term “lottery ticket” includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery.
The term “savings promotion raffle” means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regulations that may from time to time be promulgated by the appropriate prudential regulator (as defined in section 5481 of this title).
Lawful banking services connected with operation of lotteries
Nothing contained in this section prohibits a national bank from accepting deposits or cashing or otherwise handling checks or other negotiable instruments, or performing other lawful banking services for a State operating a lottery, or for an officer or employee of that State who is charged with the administration of the lottery.
Regulations; enforcement
The Comptroller of the Currency shall issue such regulations as may be necessary to the strict enforcement of this section and the prevention of evasions thereof.
Footnotes
- 1 So in original. The word “or” probably should appear.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 90–203 § 1(a) · 81 Stat. 608
Enacted · 12 U.S.C. § 25a
R.S. § 5136B, formerly § 5136A, as added Pub. L. 90–203, § 1(a), Dec. 15, 1967, 81 Stat. 608
Source evidence
Code source credit
R.S. § 5136B, formerly § 5136A, as added Pub. L. 90–203, § 1(a), Dec. 15, 1967, 81 Stat. 608Enacted provision · exact public law section
(a) Chapter 1 of title LXII of the Revised Statutes is amended by inserting, immediately after section 5136, the following new section: “Sec. 5136A. (a) A national bank may not— “(1) deal in lottery tickets; “(2) deal in bets used as a means or substitute for participation in a lottery. “(3) announce, advertise, or publicize the existence of any lottery; “(4) announce, advertise, or publicize the existence or identity of any participant or winner, as such, in a lottery. “(b) A national bank may not permit— “(1) the use of any part of any of its banking offices by any person for any purpose forbidden to the bank under subsection (a), or “(2) direct access by the public from any of its banking offices to any premises used by any person for any purpose forbidden to the bank under subsection (a). “(c) As used in this section— “(1) The term ‘deal in’ includes making, taking, buying, selling, redeeming, or collecting. “(2) The term ‘lottery’ includes any arrangement whereby three or more persons (the ‘participants’) advance money or credit to another in exchange for the possibility or expectation that one or more but not all of the participants (the ‘winners’) will receive by reason of their advances more than the amounts they have advanced, the identity of the winners being determined by any means which includes— “(A) a random selection; “(B) a game, race, or contest; or “(C) any record or tabulation of the result of one or more events in which any participant has no interest except for its bearing upon the possibility that he may become a winner. “(3) The term ‘lottery ticket’ includes any right, privilege, or possibility (and any ticket, receipt, record, or other evidence of any such right, privilege, or possibility) of becoming a winner in a lottery. “(d) Nothing contained in this section prohibits a national bank from accepting deposits or cashing or otherwise handling checks or other negotiable instruments, or performing other lawful banking services for a State operating a lottery, or for an officer or employee of that State who is charged with the administration of the lottery. “(e) The Comptroller of the Currency shall issue such regulations Regulations. as may be necessary to the strict enforcement of this section and the prevention of evasions thereof.”American Savings Promotion Act
Pub. L. 113–251 § 3(a)(1) · 128 Stat. 2888
Inserted · 12 U.S.C. § 25a(c)(2)
Pub. L. 113–251, § 3(a)(1), inserted “, other than a savings promotion raffle,” before “whereby” in introductory provisions
Source evidence
Code amendment note
Subsec. (c)(2). Pub. L. 113–251, § 3(a)(1), inserted “, other than a savings promotion raffle,” before “whereby” in introductory provisions.Enacted provision · exact public law section
(1) in paragraph (2), by inserting “, other than a savings promotion raffle,” before “whereby”; andAmerican Savings Promotion Act
Pub. L. 113–251 § 3(a)(2) · 128 Stat. 2888
Added · 12 U.S.C. § 25a(c)(4)
Pub. L. 113–251, § 3(a)(2), added par. (4)
Source evidence
Code amendment note
Subsec. (c)(4). Pub. L. 113–251, § 3(a)(2), added par. (4).Enacted provision · exact public law section
(2) by adding at the end the following: “(4) The term ‘savings promotion raffle’ means a contest in which the sole consideration required for a chance of winning designated prizes is obtained by the deposit of a specified amount of money in a savings account or other savings program, where each ticket or entry has an equal chance of being drawn, such contest being subject to regulations that may from time to time be promulgated by the appropriate prudential regulator (as defined in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481)).” .
3 of 3 references resolved to an enrolled provision
Editorial Notes
Amendments
2014—Subsec. (c)(2). Pub. L. 113–251, § 3(a)(1), inserted “, other than a savings promotion raffle,” before “whereby” in introductory provisions.
Subsec. (c)(4). Pub. L. 113–251, § 3(a)(2), added par. (4).
Statutory Notes and Related Subsidiaries
Effective Date
Pub. L. 90–203, § 6, , 81 Stat. 611, provided that: “The amendments made by this Act [adding this section, sections 339, 1730c, and 1829a of this title, and section 1306 of Title 18, Crimes and Criminal Procedure] shall take effect on .”
Findings
Pub. L. 113–251, § 2, , 128 Stat. 2888, provided that:
“Congress finds that—
“(1) the annual savings rate in the United States was 4.1 percent in 2012;
“(2) more than 40 percent of American households lack the savings to cover basic expenses for 3 months, if an unexpected event leads to a loss of stable income;
“(3) personal savings provide Americans with the financial resources to meet future needs, including higher education and homeownership, while also providing a safety net to weather unexpected financial shocks;
“(4) prize-linked savings products are typical savings products offered by financial institutions, like savings accounts, certificates of deposit, and savings bonds, with the added feature of offering chances to win prizes based on deposit activity;
“(5) the State of Michigan was the first State to allow credit unions to offer prize-linked savings products, and in 2009 launched the first large-scale prize-linked savings product in the United States;
“(6) the States of Connecticut, Michigan, Maine, Maryland, Nebraska, North Carolina, Rhode Island, and Washington all have laws that allow financial institutions to offer prize-linked savings products;
“(7) in the States of Michigan and Nebraska, more than 42,000 individuals have opened prize-linked savings accounts and saved more than $72,000,000;
“(8) prize-linked savings products have been shown to successfully attract non-savers, the asset poor, and low-to-moderate income groups, providing individuals with a new tool to build personal savings; and
“(9) encouraging personal savings is in the national interest of the United States.”
Credits
1967–2014 · 3 acts
- 1967R.S. § 5136B, formerly § 5136A, as added Pub. L. 90–203, § 1(a), , 81 Stat. 608
- 1999renumbered R.S. § 5136B, Pub. L. 106–102, title I, § 121(a)(1), , 113 Stat. 1373
- 2014amended Pub. L. 113–251, § 3(a), , 128 Stat. 2889.
Show as published
(R.S. § 5136B, formerly § 5136A, as added Pub. L. 90–203, § 1(a), , 81 Stat. 608; renumbered R.S. § 5136B, Pub. L. 106–102, title I, § 121(a)(1), , 113 Stat. 1373; amended Pub. L. 113–251, § 3(a), , 128 Stat. 2889.)