Texas Occupations Code 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.
Terms Used In Texas Occupations Code 702.352
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
(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.