§ 59.1-296.2. Contracts sold on prepayment basis
Each health spa selling contracts or health spa services on a prepayment basis shall notify the Commissioner of the proposed location of the spa 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 spa has commenced operations and has remained open for a period of thirty days. The account shall be established and maintained only in a financial institution which 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 spa after the health spa has been open and providing services pursuant to its health spa contracts for thirty days and the Commissioner gives written authorization for withdrawal.
However, the provisions of this section shall not apply to any health spa duly registered pursuant to the provisions of § 59.1-296.1 which has posted a bond or letter of credit in the amount of $100,000.
(1985, c. 585; 1990, cc. 392, 433.)
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