Sec. 702.352. ESCROW DEPOSIT REQUIRED. (a) A certificate holder or an assignee or agent of a certificate holder who accepts a prepayment for a membership in the certificate holder's health spa shall deposit the prepayment in an escrow account established with a financial institution insured by the Federal Deposit Insurance Corporation.
(b) A person required to make a deposit under Subsection (a) shall:
(1) not later than the 14th day after the date the person first accepts a prepayment:
(A) deposit the prepayments received; and
(B) submit to the secretary of state:
(i) a notarized statement that identifies the financial institution and the name in which the escrow account is held; and
(ii) a signed statement on a form approved by the secretary of state that authorizes the secretary to direct inquiries to the financial institution regarding the escrow account; and
(2) after the first deposit is made under this section, deposit subsequent prepayments not less frequently than biweekly.
(c) A certificate holder shall maintain an escrow account under this section until the 30th day after the date the certificate holder's health spa opens.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
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