§ 59.1-447. Bond or letter of credit required
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:
Number of Contracts Amount of Cash,
Bond,
or Letter of
Credit
0 to 1500 $60,000
1501 to 1750 $70,000
1751 to 2000 $80,000
2001 or more $100,000
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 Bonds may be withdrawn by giving sixty-day advance written notice to the Commissioner, thereby releasing the surety from accruing future liability beyond the effective date of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.
(1993, c. 760; 1994, c. 482.)
Sections: Previous 59.1-445 59.1-446 59.1-447 59.1-447.1 59.1-448 59.1-448.1 59.1-449 59.1-450 59.1-451 59.1-452 59.1-453 59.1-454 NextLast modified: April 3, 2009