{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/59.1-296.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/59.1-296.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/59.1-296.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/59.1-296.2.html"}],"law_id":73004,"edition_id":1,"section_id":73004,"structure_id":13741,"section_number":"59.1-296.2","catch_line":"Contracts sold on prepayment basis","history":"1985, c. 585; 1990, cc. 392, 433; 2010, c. 439; 2014, c. 459.","full_text":"A\n\nEach 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\n\nThe 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.","order_by":null,"text":{"0":{"id":262926,"text":"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.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":262927,"text":"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.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"ancestry":[{"id":13741,"edition_id":1,"name":"Virginia Health Club Act","identifier":"24","label":"chapter","depth":2,"order_by":1,"parent_id":12809,"metadata":{},"date_created":"2026-06-26 03:45:45","date_modified":"2026-06-26 03:45:45","permalink":{"id":260589,"object_type":"structure","relational_id":13741,"identifier":"24","token":"59.1\/24","url":"\/59.1\/24\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12809,"edition_id":1,"name":"Trade and Commerce","identifier":"59.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":259521,"object_type":"structure","relational_id":12809,"identifier":"59.1","token":"59.1","url":"\/59.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65021,"structure_id":13741,"section_number":"59.1-294","catch_line":"Short title","url":"\/59.1-294\/","token":"59.1\/24\/59.1-294","metadata":false},{"id":79666,"structure_id":13741,"section_number":"59.1-295","catch_line":"Statement of purpose","url":"\/59.1-295\/","token":"59.1\/24\/59.1-295","metadata":false},{"id":77481,"structure_id":13741,"section_number":"59.1-296","catch_line":"Definitions","url":"\/59.1-296\/","token":"59.1\/24\/59.1-296","metadata":false},{"id":62798,"structure_id":13741,"section_number":"59.1-296.1","catch_line":"Registration; fees","url":"\/59.1-296.1\/","token":"59.1\/24\/59.1-296.1","metadata":false},{"id":73004,"structure_id":13741,"section_number":"59.1-296.2","catch_line":"Contracts sold on prepayment basis","url":"\/59.1-296.2\/","token":"59.1\/24\/59.1-296.2","metadata":false},{"id":84951,"structure_id":13741,"section_number":"59.1-296.2:1","catch_line":"Prepayment contracts; prohibited practices; relocation; refund","url":"\/59.1-296.2_1\/","token":"59.1\/24\/59.1-296.2_1","metadata":false},{"id":81442,"structure_id":13741,"section_number":"59.1-296.2:2","catch_line":"Automated external defibrillator required","url":"\/59.1-296.2_2\/","token":"59.1\/24\/59.1-296.2_2","metadata":false},{"id":84485,"structure_id":13741,"section_number":"59.1-296.3","catch_line":"Initiation fees","url":"\/59.1-296.3\/","token":"59.1\/24\/59.1-296.3","metadata":false},{"id":54962,"structure_id":13741,"section_number":"59.1-297","catch_line":"Right of cancellation","url":"\/59.1-297\/","token":"59.1\/24\/59.1-297","metadata":false},{"id":63583,"structure_id":13741,"section_number":"59.1-297.1","catch_line":"Payment and calculation of refunds","url":"\/59.1-297.1\/","token":"59.1\/24\/59.1-297.1","metadata":false},{"id":59624,"structure_id":13741,"section_number":"59.1-297.2","catch_line":"Automatic termination of a health club contract","url":"\/59.1-297.2\/","token":"59.1\/24\/59.1-297.2","metadata":false},{"id":85709,"structure_id":13741,"section_number":"59.1-298","catch_line":"Notice to buyer","url":"\/59.1-298\/","token":"59.1\/24\/59.1-298","metadata":false},{"id":75243,"structure_id":13741,"section_number":"59.1-299","catch_line":"Duration of contract","url":"\/59.1-299\/","token":"59.1\/24\/59.1-299","metadata":false},{"id":67031,"structure_id":13741,"section_number":"59.1-300","catch_line":"Provisions of this chapter not exclusive","url":"\/59.1-300\/","token":"59.1\/24\/59.1-300","metadata":false},{"id":69302,"structure_id":13741,"section_number":"59.1-301","catch_line":"Noncomplying contract voidable","url":"\/59.1-301\/","token":"59.1\/24\/59.1-301","metadata":false},{"id":54742,"structure_id":13741,"section_number":"59.1-302","catch_line":"Fraud rendering contract void","url":"\/59.1-302\/","token":"59.1\/24\/59.1-302","metadata":false},{"id":67696,"structure_id":13741,"section_number":"59.1-303","catch_line":"Waiver of provisions void and unenforceable","url":"\/59.1-303\/","token":"59.1\/24\/59.1-303","metadata":false},{"id":66423,"structure_id":13741,"section_number":"59.1-304","catch_line":"Notice of preservation of buyers' rights","url":"\/59.1-304\/","token":"59.1\/24\/59.1-304","metadata":false},{"id":72661,"structure_id":13741,"section_number":"59.1-305","catch_line":"Prohibition against assignment of health club contract cutting off buyer's right of action or defense against seller; conditions","url":"\/59.1-305\/","token":"59.1\/24\/59.1-305","metadata":false},{"id":63585,"structure_id":13741,"section_number":"59.1-306","catch_line":"Bond or letter of credit required; exception","url":"\/59.1-306\/","token":"59.1\/24\/59.1-306","metadata":false},{"id":84158,"structure_id":13741,"section_number":"59.1-307","catch_line":"Bond or letter of credit; persons protected","url":"\/59.1-307\/","token":"59.1\/24\/59.1-307","metadata":false},{"id":68743,"structure_id":13741,"section_number":"59.1-308","catch_line":"Change in ownership of health club","url":"\/59.1-308\/","token":"59.1\/24\/59.1-308","metadata":false},{"id":80382,"structure_id":13741,"section_number":"59.1-308.1","catch_line":"Production of records","url":"\/59.1-308.1\/","token":"59.1\/24\/59.1-308.1","metadata":false},{"id":65301,"structure_id":13741,"section_number":"59.1-308.2","catch_line":"Investigations","url":"\/59.1-308.2\/","token":"59.1\/24\/59.1-308.2","metadata":false},{"id":66761,"structure_id":13741,"section_number":"59.1-309","catch_line":"Enforcement; penalties","url":"\/59.1-309\/","token":"59.1\/24\/59.1-309","metadata":false},{"id":73149,"structure_id":13741,"section_number":"59.1-310","catch_line":"Applicability","url":"\/59.1-310\/","token":"59.1\/24\/59.1-310","metadata":false}],"previous_section":{"id":62798,"structure_id":13741,"section_number":"59.1-296.1","catch_line":"Registration; fees","url":"\/59.1-296.1\/","token":"59.1\/24\/59.1-296.1","metadata":false},"next_section":{"id":84951,"structure_id":13741,"section_number":"59.1-296.2:1","catch_line":"Prepayment contracts; prohibited practices; relocation; refund","url":"\/59.1-296.2_1\/","token":"59.1\/24\/59.1-296.2_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/59.1-296.2\/","history_text":"

This law was first created in 1985. The record of its establishment is cataloged in chapter 585 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1985 \u201cActs\u201d aren\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1990, chapters 392 and 433; in 2010, chapter 439<\/a>; in 2014, chapter 459<\/a>.<\/p>","references":false,"refers_to":[{"id":62798,"section_number":"59.1-296.1","catch_line":"Registration; fees","order_by":null,"url":"\/59.1-296.1\/"}],"permalink":{"id":260607,"object_type":"law","relational_id":73004,"identifier":"59.1-296.2","token":"59.1\/24\/59.1-296.2","url":"\/59.1-296.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/59.1-296.2\/","token":"59.1\/24\/59.1-296.2","dublin_core":{"Title":"Contracts sold on prepayment basis","Type":"Text","Format":"text\/html","Identifier":"\u00a7 59.1-296.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each health club selling contracts or health club services<\/span> on a prepayment<\/span> basis shall notify the Commissioner<\/span> of the proposed facility<\/span> for which prepayments<\/span> will be solicited and shall deposit all funds received from such prepayment<\/span> 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<\/span> and the facility<\/span> 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<\/span> to hold all funds deposited and not to release such funds until receipt of written authorization from the Commissioner<\/span>. The prepayment<\/span> funds deposited will be eligible for withdrawal by the health club after the facility<\/span> has been open and providing services pursuant to its health club contracts<\/span> for 30 days and the Commissioner<\/span> gives written authorization for withdrawal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The provisions of this section shall not apply to any facility<\/span> duly registered pursuant to the provisions of § 59.1-296.1<\/a> for which a bond<\/span> or letter of credit in the amount of $100,000 has been posted. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCONTRACTS SOLD ON PREPAYMENT BASIS (\u00a7 59.1-296.2)\n\nA. Each health club selling contracts or health club services on a prepayment\nbasis shall notify the Commissioner of the proposed facility for which\nprepayments will be solicited and shall deposit all funds received from such\nprepayment contracts in an account established in a financial institution\nauthorized to transact business in the Commonwealth until the health club has\ncommenced operations in the facility and the facility has remained open for a\nperiod of 30 days. The account shall be established and maintained only in a\nfinancial institution that agrees in writing with the Commissioner to hold all\nfunds deposited and not to release such funds until receipt of written\nauthorization from the Commissioner. The prepayment funds deposited will be\neligible for withdrawal by the health club after the facility has been open and\nproviding services pursuant to its health club contracts for 30 days and the\nCommissioner gives written authorization for withdrawal.\n\nB. The provisions of this section shall not apply to any facility duly\nregistered pursuant to the provisions of § 59.1-296.1 for which a bond or\nletter of credit in the amount of $100,000 has been posted.\n\nHISTORY: 1985, c. 585; 1990, cc. 392, 433; 2010, c. 439; 2014, c. 459.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}