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§ 1829a. —  Participation by State nonmember insured banks in lotteries and related activities.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1829a]

 
                       TITLE 12--BANKS AND BANKING
 
            CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
 
Sec. 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.

(Sept. 21, 1950, ch. 967, Sec. 2[20], as added Pub. L. 90-203, Sec. 3, 
Dec. 15, 1967, 81 Stat. 610; amended Pub. L. 103-325, title VI, 
Sec. 602(a)(51), Sept. 23, 1994, 108 Stat. 2290.)


                               Amendments

    1994--Subsec. (a)(3). Pub. L. 103-325 inserted ``or'' at end.


                             Effective Date

    Section effective Apr. 1, 1968, see section 6 of Pub. L. 90-203, set 
out as a note under section 25a of this title.

                  Section Referred to in Other Sections

    This section is referred to in title 18 section 1306.



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