59.1-296.2 - Contracts sold on prepayment basis. - Virginia Statutes

§ 59.1-296.2. Contracts sold on prepayment basis.

A. Each health spa selling contracts or health spa services on a prepaymentbasis shall notify the Commissioner of the proposed facility for whichprepayments will be solicited and shall deposit all funds received from suchprepayment contracts in an account established in a financial institutionauthorized to transact business in the Commonwealth until the health spa hascommenced operations in the facility and the facility has remained open for aperiod of 30 days. The account shall be established and maintained only in afinancial institution which agrees in writing with the Commissioner to holdall funds deposited and not to release such funds until receipt of writtenauthorization from the Commissioner. The prepayment funds deposited will beeligible for withdrawal by the health spa after the facility has been openand providing services pursuant to its health spa contracts for 30 days andthe Commissioner gives written authorization for withdrawal.

B. The provisions of this section shall not apply to any facility dulyregistered pursuant to the provisions of § 59.1-296.1 for which a bond orletter of credit in the amount of $100,000 has been posted.

(1985, c. 585; 1990, cc. 392, 433; 2010, c. 439.)