This text of New Hampshire § 358-S:2 (Registration; Surety Bond; Escrow of Deposits) is published on Counsel Stack Legal Research, covering New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
I.Any person operating or intending to open or operate a martial arts school within this state shall file a registration statement with the department of justice, bureau of consumer protection and antitrust. The registration statement shall contain the name and address of the martial arts school; the names and addresses of the officers, directors, and those stockholders who hold in excess of 20 percent of the martial arts school and its parent corporation, if such an entity exists; the type of available facilities; a written list of each piece of equipment and each service which the school has available for use by buyers; approximate size of the martial arts school measured in square feet; whether or not a shower area is provided; type of membership plans to be offered and their cost; and
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I. Any person operating or intending to open or operate a martial arts school within this state shall file a registration statement with the department of justice, bureau of consumer protection and antitrust. The registration statement shall contain the name and address of the martial arts school; the names and addresses of the officers, directors, and those stockholders who hold in excess of 20 percent of the martial arts school and its parent corporation, if such an entity exists; the type of available facilities; a written list of each piece of equipment and each service which the school has available for use by buyers; approximate size of the martial arts school measured in square feet; whether or not a shower area is provided; type of membership plans to be offered and their cost; and a full and complete disclosure of any completed or pending litigation initiated against the martial arts school and any of its officers or directors within the last 3 years. A new registration statement shall be filed annually by the anniversary date of the filing of the original registration statement. Each registration statement shall be accompanied by a registration fee of $100. Any person failing to file a registration statement within 90 days of the date due shall be subject to an administrative assessment of $1,000.
II. Each martial arts school registered under this chapter shall maintain in the files of the martial arts school a copy of its registration statement filed pursuant to this section. A current registration certificate issued by the department of justice, bureau of consumer protection and antitrust shall be posted or placed at all times in a conspicuous place and the registration statement shall be made available for inspection by current members or prospective purchasers of martial arts school memberships; provided, however, that the addresses of employees need not be disclosed, nor shall the department of justice publicly disclose such addresses except in connection with the prosecution of legal proceedings instituted under this chapter or another provision of law.
III. Except as provided in paragraph IV, each martial arts school registering pursuant to this chapter shall post a surety bond in an amount of $50,000, or the equivalent in cash, marketable securities, letters of credit, or escrow accounts, with the department of justice. The type of bond shall be designated by the department of justice. No surety bond shall be accepted for filing unless it is with a surety company authorized to do business in this state. The surety may cancel the bond at any time upon giving 30 days' written notice to the department of justice. Any person who is damaged by any violation of this chapter, or by the seller's breach of contract for sale or any obligation arising therefrom, may bring an action against the bond or its equivalent to recover damages suffered and any other amounts allowable by law. The department of justice, in any action brought under this chapter or any other applicable provisions of law, may likewise proceed against the bond or its equivalent. In no event shall the aggregate liability of the surety for all claims exceed the bond amount. The department of justice may reduce the amount of the surety bond or its equivalent if a martial arts school's membership refund liability warrants such a reduction.
IV. The department of justice shall exempt from the bonding requirement set forth in paragraph III any martial arts school that meets any of the following conditions:
(a) Provides the department of justice with a statement that the martial arts school accepts membership fees on a monthly basis only.
(b) Establishes to the satisfaction of the department of justice that its membership refund liability does not exceed $5,000.
V. Any seller who intends to open or operate a martial arts school within this state and who solicits or accepts membership fees before a martial arts school begins operating shall place all such fees in an escrow account and shall identify the date the martial arts school is to begin operating. The seller shall provide each member a written receipt for the membership fee and shall provide each member a copy of the contract required under RSA 358-S:3 on or before the date the martial arts school begins operating. If the martial arts school does not begin operating within 10 days of the date originally identified by the seller, the seller shall notify, within 15 days of the date originally identified by the seller, each member of the new date that the martial arts school shall begin operating. If the new date for beginning operations is not within 45 days of the date originally identified by the seller, the seller shall refund the membership fees to the members plus interest. Under no circumstances may a seller hold membership fees in escrow for more than 60 days after the date originally identified by the seller as the date the martial arts school would begin operating. A seller may withdraw funds from the escrow account 10 days after the marital arts school begins operating. The escrow account required by this paragraph shall be separate from any escrow account required under paragraph III.
VI. Any initiation fee shall not exceed 100 percent of an annualized monthly fee.