59.1-447 - Bond or letter of credit required. - Virginia Statutes

§ 59.1-447. Bond or letter of credit required.

A. Every travel club, before entering into a travel services agreement with apurchaser of travel services, shall file and maintain with the Commissioner,in a form and substance satisfactory to him, a bond with corporate suretyfrom a company authorized to transact business in the Commonwealth, or aletter of credit from a bank insured by the Federal Insurance DepositCorporation, or cash in the amounts indicated below:

                        Number of Contracts                Amount of Cash,
                                                           Bond,
                                                           or Letter of
Credit
                         0 to 1500                               $60,000
                         1501 to 1750                            $70,000
                         1751 to 2000                            $80,000
                         2001 or more                           $100,000

B. The bond or letter of credit required by subsection A of this sectionshall be in favor of the Commonwealth of Virginia for the benefit of anypurchaser who is damaged by any violation of this chapter.

C. The aggregate liability of the bond or letter of credit to all persons forall breaches of the conditions of the bond or letter of credit shall in noevent exceed the amount of the bond or letter of credit. The bond or letterof credit shall not be canceled or terminated except with the consent of theCommissioner. Bonds may be withdrawn by giving sixty-day advance writtennotice to the Commissioner, thereby releasing the surety from accruing futureliability beyond the effective date of withdrawal. Such withdrawal shall notrelease the surety or otherwise cancel or terminate any liability existing atthe time of the effective date of the withdrawal.

(1993, c. 760; 1994, c. 482.)