59.1-265 - Seller required to obtain bond or establish escrow account; action for damages against bond or account; limitation on liability of surety or escrow agent. - Virginia Statutes

§ 59.1-265. Seller required to obtain bond or establish escrow account;action for damages against bond or account; limitation on liability of suretyor escrow agent.

Before the business opportunity seller makes any of the representations setforth in § 59.1-263, the seller shall either have obtained a surety bondissued by a surety company authorized to do business in this Commonwealth orhave established an escrow account with any credit union or any licensed andinsured commercial bank or savings institution located in the Commonwealth ofVirginia. The amount of the bond or escrow account shall be an amount notless than $50,000. Any person who is damaged by any violation of this chapteror by the business opportunity seller's breach of the contract for thebusiness opportunity sale or of any obligation arising therefrom may bring anaction against the bond or escrow account to recover damages suffered;provided, however, that the aggregate escrow liability of the surety orescrow agents under any such bond or escrow account shall be only for actualdamages and in no event shall exceed the amount of the bond or escrow account.

(1979, c. 523; 1996, c. 77.)