407.329. Prepayment of contracts, treatment of funds, notice to attorney general, exceptions. - Missouri Statutes

Prepayment of contracts, treatment of funds, notice to attorneygeneral, exceptions.

407.329. 1. Each health spa selling contracts or health spaservices on a prepayment basis shall notify the office of theattorney general of the proposed location of the spa for whichprepayments will be solicited and shall deposit all fundsreceived from such prepayment contracts in an account establishedin a financial institution authorized to transact business inthis state until the health spa has commenced operations. Theaccount shall be established and maintained only in a financialinstitution which agrees in writing with the office of theattorney general to hold all funds deposited and not to releasesuch funds until receipt of written authorization from the officeof the attorney general. The prepayment funds deposited will beeligible for withdrawal by the health spa after the health spahas opened and is providing services pursuant to its health spacontracts and the office of the attorney general gives writtenauthorization for withdrawal.

2. The provisions of this section shall not apply to anyhealth spa duly registered pursuant to the provisions of section407.327 which has posted a bond or letter of credit in the amountof twenty-five thousand dollars.

(L. 1988 S.B. 486 § 3)