Virginia Code 59.1-296.2: Contracts sold on prepayment basis
A. Each health club selling contracts or health club services on a prepayment basis shall notify the Commissioner of the proposed facility 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 club has commenced operations in the facility and the facility has remained open for a period of 30 days. The account shall be established and maintained only in a financial institution that 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 club after the facility has been open and providing services pursuant to its health club contracts for 30 days and the Commissioner gives written authorization for withdrawal.
Terms Used In Virginia Code 59.1-296.2
- Commissioner: means the Commissioner of Agriculture and Consumer Services, or a member of his staff to whom he may delegate his duties under this chapter. See Virginia Code 59.1-296
- Facility: means a location where health club services are offered as designated in a health club contract. See Virginia Code 59.1-296
- Health club: means any person, firm, corporation, organization, club or association whose primary purpose is to engage in the sale of memberships in a program consisting primarily of physical exercise with exercise machines or devices, or whose primary purpose is to engage in the sale of the right or privilege to use exercise machines or devices. See Virginia Code 59.1-296
- Health club services: means and includes services, privileges, or rights offered for sale or provided by a health club. See Virginia Code 59.1-296
- in writing: include any representation of words, letters, symbols, numbers, or figures, whether (i) printed or inscribed on a tangible medium or (ii) stored in an electronic or other medium and retrievable in a perceivable form and whether an electronic signature authorized by Virginia Code 1-257
- Prepayment: means payment of any consideration for services or the use of facilities made prior to the day on which the services or facilities of the health club are fully open and available for regular use by the members. See Virginia Code 59.1-296
B. The provisions of this section shall not apply to any facility duly registered pursuant to the provisions of § 59.1-296.1 for which a bond or letter of credit in the amount of $100,000 has been posted.
1985, c. 585; 1990, cc. 392, 433; 2010, c. 439; 2014, c. 459.