                                 CODE OF VIRGINIA

BOND OR LETTER OF CREDIT REQUIRED (§ 59.1-447)

A. Every travel club, before entering into a travel services agreement with a
purchaser of travel services, shall file and maintain with the Commissioner, in
a 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 Insurance Deposit Corporation, or cash
in the amounts indicated below:

B. The bond or letter of credit required by subsection A of this section shall
be in favor of the Commonwealth of Virginia for the benefit of any purchaser who
is damaged by any violation of this chapter.

C. The aggregate liability of the bond or letter of credit to all persons for
all breaches of the conditions of the bond or letter of credit shall in no event
exceed the amount of the bond or letter of credit. The bond or letter of credit
shall not be canceled or terminated except with the consent of the Commissioner.
Bonds may be withdrawn by giving sixty-day advance written notice to the
Commissioner, thereby releasing the surety from accruing future liability beyond
the effective date of withdrawal. Such withdrawal shall not release the surety
or otherwise cancel or terminate any liability existing at the time of the
effective date of the withdrawal.

HISTORY: 1993, c. 760; 1994, c. 482.