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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>61483</law_id><section_number>59.1-265</section_number><catch_line>Seller required to obtain bond or establish escrow account; action for damages against bond or account; limitation on liability of surety or escrow agent</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>59.1-264</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="59.1">Trade and Commerce</unit><unit label="chapter" level="2" order_by="1" identifier="21">Business Opportunity Sales Act</unit></structure><text>
						<section><p>Before the business opportunity seller makes any of the representations set forth in &#xA7;&#xA0;<a class="law" title="Definitions" href="/59.1-263/">59.1-263</a>, the seller shall either have obtained a <span class="dictionary">surety</span> <span class="dictionary">bond</span> issued by a <span class="dictionary">surety</span> company authorized to do business in this Commonwealth or have established an escrow account with any credit union or any licensed and insured commercial bank or savings institution located in the Commonwealth of Virginia. The amount of the <span class="dictionary">bond</span> or escrow account shall be an amount not less than $50,000. Any person who is damaged by any violation of this chapter or by the business opportunity seller&#x2019;s breach of the <span class="dictionary">contract</span> for the business opportunity sale or of any obligation arising therefrom may bring an action against the <span class="dictionary">bond</span> or escrow account to recover <span class="dictionary">damages</span> suffered; provided, however, that the aggregate escrow liability of the <span class="dictionary">surety</span> or escrow agents under any such <span class="dictionary">bond</span> or escrow account shall be only for actual <span class="dictionary">damages</span> and in no event shall exceed the amount of the <span class="dictionary">bond</span> or escrow account.</p></section></text><history>1979, c. 523; 1996, c. 77.</history><metadata></metadata></law>
