TRENTON N.J.–Gov. Chris Christie has signed legislation that will allow New Jersey’s credit unions to offer prize-linked savings accounts.
The legislation had the backing of the New Jersey Credit Union League.
Similar to other states, the New Jersey law will allow CUs and other institutions to provide incentives for depositors to open and maintain savings accounts by conducting promotions in which a minimum deposit in an amount predetermined by the institution qualifies for a chance to win prizes.
The NJ bill enables state chartered institutions to offer the accounts, and also clarifies that such savings promotion programs conducted by either state or federally chartered institution do not constitute unlawful gambling under New Jersey law, and are not subject to any laws concerning legalized games of chance presently in statute.
The legislation essentially takes effect six months from signing, or the third quarter of this year.
Federal charters have had similar authority since 2014.