                                 CODE OF VIRGINIA

CONTRACTS SOLD ON PREPAYMENT BASIS (§ 59.1-296.2)

A. 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.

B. The provisions of this section shall not apply to any facility duly
registered pursuant to the provisions of &#xA7; 59.1-296.1 for which a bond or
letter of credit in the amount of $100,000 has been posted.

HISTORY: 1985, c. 585; 1990, cc. 392, 433; 2010, c. 439; 2014, c. 459.