A. Each health club selling contracts or health club services on a prepayment basis shall notify the Commissioner of the proposed facility for which prepayments will be solicited and shall deposit all funds received from such prepayment contracts in an account established in a financial institution authorized to transact business in the Commonwealth until the health club has commenced operations in the facility and the facility has remained open for a period of 30 days. The account shall be established and maintained only in a financial institution that agrees in writing with the Commissioner to hold all funds deposited and not to release such funds until receipt of written authorization from the Commissioner. The prepayment funds deposited will be eligible for withdrawal by the health club after the facility has been open and providing services pursuant to its health club contracts for 30 days and the Commissioner gives written authorization for withdrawal.
B. The provisions of this section shall not apply to any facility duly registered pursuant to the provisions of § 59.1-296.1 for which a bond or letter of credit in the amount of $100,000 has been posted.
1985, c. 585; 1990, cc. 392, 433; 2010, c. 439; 2014, c. 459.
Structure Code of Virginia
Title 59.1 - Trade and Commerce
Chapter 24 - Virginia Health Club Act
§ 59.1-295. Statement of purpose
§ 59.1-296.1. Registration; fees
§ 59.1-296.2. Contracts sold on prepayment basis
§ 59.1-296.2:1. Prepayment contracts; prohibited practices; relocation; refund
§ 59.1-296.2:2. Automated external defibrillator required
§ 59.1-297. Right of cancellation
§ 59.1-297.1. Payment and calculation of refunds
§ 59.1-297.2. Automatic termination of a health club contract
§ 59.1-299. Duration of contract
§ 59.1-300. Provisions of this chapter not exclusive
§ 59.1-301. Noncomplying contract voidable
§ 59.1-302. Fraud rendering contract void
§ 59.1-303. Waiver of provisions void and unenforceable
§ 59.1-304. Notice of preservation of buyers' rights
§ 59.1-306. Bond or letter of credit required; exception
§ 59.1-307. Bond or letter of credit; persons protected
§ 59.1-308. Change in ownership of health club
§ 59.1-308.1. Production of records