Laws: Cases and Codes : U.S. Code : Title 12 : Section 1829a


   
U.S. Code as of: 01/19/04
Section 1829a. Participation by State nonmember insured banks in lotteries and related activities

    (a) Prohibited activities
      A State nonmember insured 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; or
        (4) announce, advertise, or publicize the existence or identity
      of any participant or winner, as such, in a lottery.
    (b) Use of banking premises prohibited
      A State nonmember insured 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)
      of this section, 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) of this section.
    (c) Definitions
      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) Lawful banking services connected with operation of lottery
      Nothing contained in this section prohibits a State nonmember
    insured 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) Regulations; enforcement
      The Board of Directors shall prescribe such regulations as may be
    necessary to the strict enforcement of this section and the
    prevention of evasions thereof.



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