A. The bond or letter of credit required by § 59.1-306 shall be in favor of the Commonwealth for the benefit of (i) any buyer injured by having paid money for health club services in a facility that fails to open by the date provided by the contract, which date shall not be in excess of 12 months from the signing of the contract; (ii) any buyer injured by having paid money for health club services in a facility which goes out of business prior to the expiration of the buyer's health club contract; or (iii) any buyer injured as a result of a violation of this chapter.
B. The aggregate liability of the bond or letter of credit to all persons for all breaches of the conditions of the bond or letter of credit shall in no event exceed the amount of the bond or letter of credit. The bond or letter of credit shall not be cancelled or terminated except with the consent of the Commissioner.
1984, c. 738; 1987, c. 547; 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