                                 CODE OF VIRGINIA

SELLER REQUIRED TO OBTAIN BOND OR ESTABLISH ESCROW ACCOUNT; ACTION FOR DAMAGES
AGAINST BOND OR ACCOUNT; LIMITATION ON LIABILITY OF SURETY OR ESCROW AGENT (§
59.1-265)

Before the business opportunity seller makes any of the representations set
forth in § 59.1-263, the seller shall either have obtained a surety bond issued
by a surety 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 bond 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&#8217;s breach of the contract for the business
opportunity sale or of any obligation arising therefrom may bring an action
against the bond or escrow account to recover damages suffered; provided,
however, that the aggregate escrow liability of the surety or escrow agents
under any such bond or escrow account shall be only for actual damages and in no
event shall exceed the amount of the bond or escrow account.

HISTORY: 1979, c. 523; 1996, c. 77.