§ 59.1-306. Bond or letter of credit required; exception.
A. Every health spa, before it enters into a health spa contract and acceptsany moneys in excess of the prorated monthly fee for the month when thecontract is initially executed plus one month's fees or accepts anyinitiation fee in excess of $125, shall file and maintain with theCommissioner, in form and substance satisfactory to him, a bond withcorporate surety, from a company authorized to transact business in theCommonwealth or a letter of credit from a bank insured by the Federal DepositInsurance Corporation in the amounts indicated below:
Number of Amount of bond applicable contracts or letter of credit 0 to 250 $10,000 251 to 500 $20,000 501 to 750 $30,000 751 to 1000 $40,000 1001 to 1250 $50,000 1251 to 1500 $60,000 1501 to 1750 $70,000 1751 to 2000 $80,000 2001 or more $100,000
For purposes of calculating the number of applicable unexpired health spacontracts when determining the required amount of bond or letter of credit,health spa contracts entered into on or after January 1, 2005, with a termthat exceeds 13 months shall be counted as multiple health spa contracts,such that the number of applicable contracts counted with respect theretoshall equal the total of the number of full years and any partial year in itsterm. However, this paragraph shall not apply (i) to health spa contractsthat are payable only on a monthly basis and for which the initiation fee isno more than $250, or (ii) if the number of the health spa's contracts ineffect with a term that exceeds 13 months is less than 10 percent of thetotal of its health spa contracts.
The number of applicable unexpired contracts shall be separately calculatedfor each facility.
A health spa shall file a separate bond or letter of credit with respect toeach separate facility, even though the separate facilities are owned oroperated by the same health spa.
However, no health spa shall be required to file with the Commissioner bondsor letters of credit in excess of $300,000. If the $300,000 limit isapplicable, then the bonds or letters of credit filed by the health spa shallapply to all facilities owned or operated by the same health spa.
B. A health spa may sell health spa contracts of up to 36 months' durationfor a facility for which a health spa has not filed a bond or letter ofcredit so long as the amount of payment actually charged, due or receivedunder the health spa contracts each month by the health spa or any holderthereunder does not exceed the monthly fee calculated pursuant to thedefinition thereof in § 59.1-296, with the exception that the paymentactually charged may include a maximum initiation fee of $125 for health spacontracts of 13 months or more in duration.
(1984, c. 738; 1985, c. 585; 1990, cc. 392, 433; 1992, c. 117; 2004, c. 988;2010, c. 439.)
§ 59.1-306. Bond or letter of credit required; exception.
A. Every health spa, before it enters into a health spa contract and acceptsany moneys in excess of the prorated monthly fee for the month when thecontract is initially executed plus one month's fees or accepts anyinitiation fee in excess of $125, shall file and maintain with theCommissioner, in form and substance satisfactory to him, a bond withcorporate surety, from a company authorized to transact business in theCommonwealth or a letter of credit from a bank insured by the Federal DepositInsurance Corporation in the amounts indicated below:
Number of Amount of bond applicable contracts or letter of credit 0 to 250 $10,000 251 to 500 $20,000 501 to 750 $30,000 751 to 1000 $40,000 1001 to 1250 $50,000 1251 to 1500 $60,000 1501 to 1750 $70,000 1751 to 2000 $80,000 2001 or more $100,000
For purposes of calculating the number of applicable unexpired health spacontracts when determining the required amount of bond or letter of credit,health spa contracts entered into on or after January 1, 2005, with a termthat exceeds 13 months shall be counted as multiple health spa contracts,such that the number of applicable contracts counted with respect theretoshall equal the total of the number of full years and any partial year in itsterm. However, this paragraph shall not apply (i) to health spa contractsthat are payable only on a monthly basis and for which the initiation fee isno more than $250, or (ii) if the number of the health spa's contracts ineffect with a term that exceeds 13 months is less than 10 percent of thetotal of its health spa contracts.
The number of applicable unexpired contracts shall be separately calculatedfor each facility.
A health spa shall file a separate bond or letter of credit with respect toeach separate facility, even though the separate facilities are owned oroperated by the same health spa.
However, no health spa shall be required to file with the Commissioner bondsor letters of credit in excess of $300,000. If the $300,000 limit isapplicable, then the bonds or letters of credit filed by the health spa shallapply to all facilities owned or operated by the same health spa.
B. A health spa may sell health spa contracts of up to 36 months' durationfor a facility for which a health spa has not filed a bond or letter ofcredit so long as the amount of payment actually charged, due or receivedunder the health spa contracts each month by the health spa or any holderthereunder does not exceed the monthly fee calculated pursuant to thedefinition thereof in § 59.1-296, with the exception that the paymentactually charged may include a maximum initiation fee of $125 for health spacontracts of 13 months or more in duration.
(1984, c. 738; 1985, c. 585; 1990, cc. 392, 433; 1992, c. 117; 2004, c. 988;2010, c. 439.)
§ 59.1-306. Bond or letter of credit required; exception.
A. Every health spa, before it enters into a health spa contract and acceptsany moneys in excess of the prorated monthly fee for the month when thecontract is initially executed plus one month's fees or accepts anyinitiation fee in excess of $125, shall file and maintain with theCommissioner, in form and substance satisfactory to him, a bond withcorporate surety, from a company authorized to transact business in theCommonwealth or a letter of credit from a bank insured by the Federal DepositInsurance Corporation in the amounts indicated below:
Number of Amount of bond applicable contracts or letter of credit 0 to 250 $10,000 251 to 500 $20,000 501 to 750 $30,000 751 to 1000 $40,000 1001 to 1250 $50,000 1251 to 1500 $60,000 1501 to 1750 $70,000 1751 to 2000 $80,000 2001 or more $100,000
For purposes of calculating the number of applicable unexpired health spacontracts when determining the required amount of bond or letter of credit,health spa contracts entered into on or after January 1, 2005, with a termthat exceeds 13 months shall be counted as multiple health spa contracts,such that the number of applicable contracts counted with respect theretoshall equal the total of the number of full years and any partial year in itsterm. However, this paragraph shall not apply (i) to health spa contractsthat are payable only on a monthly basis and for which the initiation fee isno more than $250, or (ii) if the number of the health spa's contracts ineffect with a term that exceeds 13 months is less than 10 percent of thetotal of its health spa contracts.
The number of applicable unexpired contracts shall be separately calculatedfor each facility.
A health spa shall file a separate bond or letter of credit with respect toeach separate facility, even though the separate facilities are owned oroperated by the same health spa.
However, no health spa shall be required to file with the Commissioner bondsor letters of credit in excess of $300,000. If the $300,000 limit isapplicable, then the bonds or letters of credit filed by the health spa shallapply to all facilities owned or operated by the same health spa.
B. A health spa may sell health spa contracts of up to 36 months' durationfor a facility for which a health spa has not filed a bond or letter ofcredit so long as the amount of payment actually charged, due or receivedunder the health spa contracts each month by the health spa or any holderthereunder does not exceed the monthly fee calculated pursuant to thedefinition thereof in § 59.1-296, with the exception that the paymentactually charged may include a maximum initiation fee of $125 for health spacontracts of 13 months or more in duration.
(1984, c. 738; 1985, c. 585; 1990, cc. 392, 433; 1992, c. 117; 2004, c. 988;2010, c. 439.)
