{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/59.1-335.4.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/59.1-335.4.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/59.1-335.4.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/59.1-335.4.html"}],"law_id":56862,"edition_id":1,"section_id":56862,"structure_id":14892,"section_number":"59.1-335.4","catch_line":"Bond or letter of credit required","history":"1989, c. 655.","full_text":"A\n\nEvery credit services business, before it enters into a contract with a consumer, shall file and maintain with the Commissioner, in form and substance satisfactory to him, a bond with corporate surety from a company authorized to transact business in the Commonwealth, or a letter of credit from a bank insured by the Federal Deposit Insurance Corporation in an amount equal to 100 times the standard fee charged by the credit services business but in no event shall the bond or letter of credit required under this section be less than $5,000 or greater than $50,000.B\n\nThe required bond or letter of credit shall be in favor of the Commonwealth of Virginia for the benefit of any person who is damaged by any violation of this Act. The bond or letter of credit shall also be in favor of any person damaged by such practices. Any person claiming against the bond or letter of credit for a violation of this Act may maintain an action at law against the credit services business and against the surety or bank. The surety or bank shall be liable only for actual damages and attorneys fees and not for penalties permitted under §§ 59.1-206 and 59.1-335.12 or punitive damages permitted under § 59.1-335.10. The aggregate liability of the surety or bank to all persons damaged by a credit services business violation of this chapter shall in no event exceed the amount of the bond or letter of credit.C\n\nThe bond or letter of credit shall be maintained for a period of two years after the date that the credit services business ceases operation.","order_by":null,"text":{"0":{"id":208278,"text":"Every credit services business, before it enters into a contract with a consumer, shall file and maintain with the Commissioner, in form and substance satisfactory to him, a bond with corporate surety from a company authorized to transact business in the Commonwealth, or a letter of credit from a bank insured by the Federal Deposit Insurance Corporation in an amount equal to 100 times the standard fee charged by the credit services business but in no event shall the bond or letter of credit required under this section be less than $5,000 or greater than $50,000.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":208279,"text":"The required bond or letter of credit shall be in favor of the Commonwealth of Virginia for the benefit of any person who is damaged by any violation of this Act. The bond or letter of credit shall also be in favor of any person damaged by such practices. Any person claiming against the bond or letter of credit for a violation of this Act may maintain an action at law against the credit services business and against the surety or bank. The surety or bank shall be liable only for actual damages and attorneys fees and not for penalties permitted under §§ 59.1-206 and 59.1-335.12 or punitive damages permitted under § 59.1-335.10. The aggregate liability of the surety or bank to all persons damaged by a credit services business violation of this chapter shall in no event exceed the amount of the bond or letter of credit.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":208280,"text":"The bond or letter of credit shall be maintained for a period of two years after the date that the credit services business ceases operation.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14892,"edition_id":1,"name":"Virginia Credit Services Businesses Act","identifier":"25.1","label":"chapter","depth":2,"order_by":1,"parent_id":12809,"metadata":{},"date_created":"2026-06-26 03:50:37","date_modified":"2026-06-26 03:50:37","permalink":{"id":260865,"object_type":"structure","relational_id":14892,"identifier":"25.1","token":"59.1\/25.1","url":"\/59.1\/25.1\/","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":75984,"structure_id":14892,"section_number":"59.1-335.1","catch_line":"Title","url":"\/59.1-335.1\/","token":"59.1\/25.1\/59.1-335.1","metadata":false},{"id":72344,"structure_id":14892,"section_number":"59.1-335.10","catch_line":"Liability to consumer","url":"\/59.1-335.10\/","token":"59.1\/25.1\/59.1-335.10","metadata":false},{"id":81308,"structure_id":14892,"section_number":"59.1-335.11","catch_line":"Statute of limitations","url":"\/59.1-335.11\/","token":"59.1\/25.1\/59.1-335.11","metadata":false},{"id":72551,"structure_id":14892,"section_number":"59.1-335.12","catch_line":"Violations of chapter; enforcement","url":"\/59.1-335.12\/","token":"59.1\/25.1\/59.1-335.12","metadata":false},{"id":73880,"structure_id":14892,"section_number":"59.1-335.2","catch_line":"Definitions","url":"\/59.1-335.2\/","token":"59.1\/25.1\/59.1-335.2","metadata":false},{"id":63390,"structure_id":14892,"section_number":"59.1-335.3","catch_line":"Registration; fees","url":"\/59.1-335.3\/","token":"59.1\/25.1\/59.1-335.3","metadata":false},{"id":56862,"structure_id":14892,"section_number":"59.1-335.4","catch_line":"Bond or letter of credit required","url":"\/59.1-335.4\/","token":"59.1\/25.1\/59.1-335.4","metadata":false},{"id":62805,"structure_id":14892,"section_number":"59.1-335.5","catch_line":"Prohibited practices","url":"\/59.1-335.5\/","token":"59.1\/25.1\/59.1-335.5","metadata":false},{"id":79483,"structure_id":14892,"section_number":"59.1-335.6","catch_line":"Information statement required","url":"\/59.1-335.6\/","token":"59.1\/25.1\/59.1-335.6","metadata":false},{"id":60837,"structure_id":14892,"section_number":"59.1-335.7","catch_line":"Contents of information statement","url":"\/59.1-335.7\/","token":"59.1\/25.1\/59.1-335.7","metadata":false},{"id":77844,"structure_id":14892,"section_number":"59.1-335.8","catch_line":"Contents of contracts","url":"\/59.1-335.8\/","token":"59.1\/25.1\/59.1-335.8","metadata":false},{"id":84563,"structure_id":14892,"section_number":"59.1-335.9","catch_line":"Breach; null and void contract","url":"\/59.1-335.9\/","token":"59.1\/25.1\/59.1-335.9","metadata":false}],"previous_section":{"id":63390,"structure_id":14892,"section_number":"59.1-335.3","catch_line":"Registration; fees","url":"\/59.1-335.3\/","token":"59.1\/25.1\/59.1-335.3","metadata":false},"next_section":{"id":62805,"structure_id":14892,"section_number":"59.1-335.5","catch_line":"Prohibited practices","url":"\/59.1-335.5\/","token":"59.1\/25.1\/59.1-335.5","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/59.1-335.4\/","history_text":"

This law was first created in 1989. The record of its establishment is cataloged in chapter 655 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 1989 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":63390,"section_number":"59.1-335.3","catch_line":"Registration; fees","order_by":null,"url":"\/59.1-335.3\/"},{"id":77844,"section_number":"59.1-335.8","catch_line":"Contents of contracts","order_by":null,"url":"\/59.1-335.8\/"}],"refers_to":[{"id":83374,"section_number":"59.1-206","catch_line":"Civil penalties; attorney fees","order_by":null,"url":"\/59.1-206\/"},{"id":72344,"section_number":"59.1-335.10","catch_line":"Liability to consumer","order_by":null,"url":"\/59.1-335.10\/"},{"id":72551,"section_number":"59.1-335.12","catch_line":"Violations of chapter; enforcement","order_by":null,"url":"\/59.1-335.12\/"}],"permalink":{"id":260891,"object_type":"law","relational_id":56862,"identifier":"59.1-335.4","token":"59.1\/25.1\/59.1-335.4","url":"\/59.1-335.4\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/59.1-335.4\/","token":"59.1\/25.1\/59.1-335.4","dublin_core":{"Title":"Bond or letter of credit required","Type":"Text","Format":"text\/html","Identifier":"\u00a7 59.1-335.4","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every credit services business<\/span>, before it enters into a contract<\/span> with a consumer<\/span>, shall file<\/span> and maintain with the Commissioner<\/span>, in form and substance satisfactory to him, a bond<\/span> with corporate surety<\/span> from a company authorized to transact business in the Commonwealth, or a letter of credit from a bank insured by the Federal Deposit Insurance Corporation in an amount equal to 100 times the standard fee charged by the credit services business<\/span> but in no event shall the bond<\/span> or letter of credit required under this section be less than $5,000 or greater than $50,000. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The required bond<\/span> or letter of credit shall be in favor of the Commonwealth of Virginia for the benefit of any person<\/span> who is damaged by any violation of this Act. The bond<\/span> or letter of credit shall also be in favor of any person<\/span> damaged by such practices. Any person<\/span> claiming against the bond<\/span> or letter of credit for a violation of this Act may maintain an action at law<\/span> against the credit services business<\/span> and against the surety<\/span> or bank. The surety<\/span> or bank shall be liable only for actual damages<\/span> and attorneys fees and not for penalties permitted under §§ 59.1-206<\/a> and 59.1-335.12<\/a> or punitive damages<\/span> permitted under § 59.1-335.10<\/a>. The aggregate liability of the surety<\/span> or bank to all persons<\/span> damaged by a credit services business<\/span> violation of this chapter shall in no event exceed the amount of the bond<\/span> or letter of credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The bond<\/span> or letter of credit shall be maintained for a period of two years after the date that the credit services business<\/span> ceases operation. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBOND OR LETTER OF CREDIT REQUIRED (\u00a7 59.1-335.4)\n\nA. Every credit services business, before it enters into a contract with a\nconsumer, shall file and maintain with the Commissioner, in form and substance\nsatisfactory to him, a bond with corporate surety from a company authorized to\ntransact business in the Commonwealth, or a letter of credit from a bank insured\nby the Federal Deposit Insurance Corporation in an amount equal to 100 times the\nstandard fee charged by the credit services business but in no event shall the\nbond or letter of credit required under this section be less than $5,000 or\ngreater than $50,000.\n\nB. The required bond or letter of credit shall be in favor of the Commonwealth\nof Virginia for the benefit of any person who is damaged by any violation of\nthis Act. The bond or letter of credit shall also be in favor of any person\ndamaged by such practices. Any person claiming against the bond or letter of\ncredit for a violation of this Act may maintain an action at law against the\ncredit services business and against the surety or bank. The surety or bank\nshall be liable only for actual damages and attorneys fees and not for penalties\npermitted under §§ 59.1-206 and 59.1-335.12 or punitive damages\npermitted under § 59.1-335.10. The aggregate liability of the surety or\nbank to all persons damaged by a credit services business violation of this\nchapter shall in no event exceed the amount of the bond or letter of credit.\n\nC. The bond or letter of credit shall be maintained for a period of two years\nafter the date that the credit services business ceases operation.\n\nHISTORY: 1989, c. 655.","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}}