Virginia Code 59.1-307: Bond or letter of credit; persons protected
A. The bond or letter of credit required by § 59.1-306 shall be in favor of the Commonwealth for the benefit of (i) any buyer injured by having paid money for health club services in a facility that fails to open by the date provided by the contract, which date shall not be in excess of 12 months from the signing of the contract; (ii) any buyer injured by having paid money for health club services in a facility which goes out of business prior to the expiration of the buyer’s health club contract; or (iii) any buyer injured as a result of a violation of this chapter.
Terms Used In Virginia Code 59.1-307
- Buyer: means a natural person who enters into a health club contract. See Virginia Code 59.1-296
- 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
- Contract: A legal written agreement that becomes binding when signed.
- 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 contract: means an agreement whereby the buyer of health club services purchases, or becomes obligated to purchase, health club services. 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
- Out of business: means the status of a facility that is permanently closed and for which there is no comparable alternate facility. See Virginia Code 59.1-296
B. 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 cancelled or terminated except with the consent of the Commissioner.
1984, c. 738; 1987, c. 547; 2014, c. 459.