407.1240. As used in sections 407.1240 to 407.1252, the followingterms shall mean:
(1) "Business day", every day except Sundays and holidays;
(2) "Holiday", any day that the United States Post Office is closed;
(3) "Membership fee", the initial or reoccurring fee that isunrelated to actual pass-through costs associated with the use andenjoyment of travel benefits;
(4) "Rescission statement", a statement that shall be printed on allcontracts pertaining to the purchase of travel club memberships from atravel club that shall provide in at least fourteen-point bold type thefollowing statement:
"Assuming you have returned to the travel club all materials deliveredto the purchaser at closing, you have the right to rescind this transactionfor a period of three business days after the date of this agreement. Toexercise the right of rescission, you must deliver to the travel club,either in person or by first class mail postmarked within thethree-business-day period, at the address referenced in this contract, awritten statement of your desire to rescind this transaction, and allmaterials of value that were provided and given to you at the time of thepurchase of your travel club membership.";
(5) "Surety bond", any surety bond, corporate guaranty, letter ofcredit, certificate of deposit, or other bond or financial assurance in thesum of fifty thousand dollars that is required to be delivered by travelclubs which have been adjudged to have violated subsection 4 or 5 ofsection 407.1252 and in the event that such surety bond is accessedsubsequent to posting as a result of the need to reimburse purchasers, theamount of the surety bond shall be increased by ten thousand dollars perreimbursement. All surety bonds shall:
(a) Serve as a source of funds to reimburse purchasers of travel clubmemberships who validly exercise their rights under the rescissionstatement in their contract but who are not, after judgment, provided arefund equal to the purchase price of their unused travel club membershipsor, after settlement, equal to the terms of the settlement;
(b) Serve as a source of funds to reimburse purchasers of travel clubmemberships who have been proven to be the subject of fraud;
(c) Remain in full force and effect during the period of time thetravel club conducts its business activities; and
(d) Be deemed acceptable to the attorney general if:
a. It is issued by an insurance company that possesses at least a"B+" rating, or its equivalent by A.M. Best or its successors or by anyother nationally recognized entity that rates the creditworthiness ofinsurance companies;
b. It is in the form of a letter of credit that is issued by abanking institution with assets of at least seventy-five million dollars;
c. It is in the form of a certificate of deposit; or
d. It is in a form that otherwise is acceptable to the attorneygeneral;
(6) "Travel benefits", benefits that are offered to travel clubpurchasers and customers that include all forms of overnight resort,condominium, time-share, hotel, motel, and other rental housing of everynature; all forms of air travel and rental car access; all forms of cruiseline access; and all other forms of discounted travel benefits of everynature;
(7) "Travel club", any business enterprise that either directly,indirectly, or through the use of a fulfillment company or other thirdparty offers to sell to the public the reoccurring right to purchase travelbenefits at prices that are represented as being discounted from pricesotherwise not generally available to the public and charges members orcustomers a membership fee that collectively equals no less than sevenhundred fifty dollars.
407.1240. As used in sections 407.1240 to 407.1252, the followingterms shall mean:
(1) "Business day", every day except Sundays and holidays;
(2) "Holiday", any day that the United States Post Office is closed;
(3) "Membership fee", the initial or reoccurring fee that isunrelated to actual pass-through costs associated with the use andenjoyment of travel benefits;
(4) "Rescission statement", a statement that shall be printed on allcontracts pertaining to the purchase of travel club memberships from atravel club that shall provide in at least fourteen-point bold type thefollowing statement:
"Assuming you have returned to the travel club all materials deliveredto the purchaser at closing, you have the right to rescind this transactionfor a period of three business days after the date of this agreement. Toexercise the right of rescission, you must deliver to the travel club,either in person or by first class mail postmarked within thethree-business-day period, at the address referenced in this contract, awritten statement of your desire to rescind this transaction, and allmaterials of value that were provided and given to you at the time of thepurchase of your travel club membership.";
(5) "Surety bond", any surety bond, corporate guaranty, letter ofcredit, certificate of deposit, or other bond or financial assurance in thesum of fifty thousand dollars that is required to be delivered by travelclubs which have been adjudged to have violated subsection 4 or 5 ofsection 407.1252 and in the event that such surety bond is accessedsubsequent to posting as a result of the need to reimburse purchasers, theamount of the surety bond shall be increased by ten thousand dollars perreimbursement. All surety bonds shall:
(a) Serve as a source of funds to reimburse purchasers of travel clubmemberships who validly exercise their rights under the rescissionstatement in their contract but who are not, after judgment, provided arefund equal to the purchase price of their unused travel club membershipsor, after settlement, equal to the terms of the settlement;
(b) Serve as a source of funds to reimburse purchasers of travel clubmemberships who have been proven to be the subject of fraud;
(c) Remain in full force and effect during the period of time thetravel club conducts its business activities; and
(d) Be deemed acceptable to the attorney general if:
a. It is issued by an insurance company that possesses at least a"B+" rating, or its equivalent by A.M. Best or its successors or by anyother nationally recognized entity that rates the creditworthiness ofinsurance companies;
b. It is in the form of a letter of credit that is issued by abanking institution with assets of at least seventy-five million dollars;
c. It is in the form of a certificate of deposit; or
d. It is in a form that otherwise is acceptable to the attorneygeneral;
(6) "Travel benefits", benefits that are offered to travel clubpurchasers and customers that include all forms of overnight resort,condominium, time-share, hotel, motel, and other rental housing of everynature; all forms of air travel and rental car access; all forms of cruiseline access; and all other forms of discounted travel benefits of everynature;
(7) "Travel club", any business enterprise that either directly,indirectly, or through the use of a fulfillment company or other thirdparty offers to sell to the public the reoccurring right to purchase travelbenefits at prices that are represented as being discounted from pricesotherwise not generally available to the public and charges members orcustomers a membership fee that collectively equals no less than sevenhundred fifty dollars.
407.1240. As used in sections 407.1240 to 407.1252, the followingterms shall mean:
(1) "Business day", every day except Sundays and holidays;
(2) "Holiday", any day that the United States Post Office is closed;
(3) "Membership fee", the initial or reoccurring fee that isunrelated to actual pass-through costs associated with the use andenjoyment of travel benefits;
(4) "Rescission statement", a statement that shall be printed on allcontracts pertaining to the purchase of travel club memberships from atravel club that shall provide in at least fourteen-point bold type thefollowing statement:
"Assuming you have returned to the travel club all materials deliveredto the purchaser at closing, you have the right to rescind this transactionfor a period of three business days after the date of this agreement. Toexercise the right of rescission, you must deliver to the travel club,either in person or by first class mail postmarked within thethree-business-day period, at the address referenced in this contract, awritten statement of your desire to rescind this transaction, and allmaterials of value that were provided and given to you at the time of thepurchase of your travel club membership.";
(5) "Surety bond", any surety bond, corporate guaranty, letter ofcredit, certificate of deposit, or other bond or financial assurance in thesum of fifty thousand dollars that is required to be delivered by travelclubs which have been adjudged to have violated subsection 4 or 5 ofsection 407.1252 and in the event that such surety bond is accessedsubsequent to posting as a result of the need to reimburse purchasers, theamount of the surety bond shall be increased by ten thousand dollars perreimbursement. All surety bonds shall:
(a) Serve as a source of funds to reimburse purchasers of travel clubmemberships who validly exercise their rights under the rescissionstatement in their contract but who are not, after judgment, provided arefund equal to the purchase price of their unused travel club membershipsor, after settlement, equal to the terms of the settlement;
(b) Serve as a source of funds to reimburse purchasers of travel clubmemberships who have been proven to be the subject of fraud;
(c) Remain in full force and effect during the period of time thetravel club conducts its business activities; and
(d) Be deemed acceptable to the attorney general if:
a. It is issued by an insurance company that possesses at least a"B+" rating, or its equivalent by A.M. Best or its successors or by anyother nationally recognized entity that rates the creditworthiness ofinsurance companies;
b. It is in the form of a letter of credit that is issued by abanking institution with assets of at least seventy-five million dollars;
c. It is in the form of a certificate of deposit; or
d. It is in a form that otherwise is acceptable to the attorneygeneral;
(6) "Travel benefits", benefits that are offered to travel clubpurchasers and customers that include all forms of overnight resort,condominium, time-share, hotel, motel, and other rental housing of everynature; all forms of air travel and rental car access; all forms of cruiseline access; and all other forms of discounted travel benefits of everynature;
(7) "Travel club", any business enterprise that either directly,indirectly, or through the use of a fulfillment company or other thirdparty offers to sell to the public the reoccurring right to purchase travelbenefits at prices that are represented as being discounted from pricesotherwise not generally available to the public and charges members orcustomers a membership fee that collectively equals no less than sevenhundred fifty dollars.
