Oklahoma § 59-2007 Bond or letter of credit required.

Oklahoma Statutes

§ 59-2007 — Bond or letter of credit required.

Oklahoma·Title 59 Professions And Occupations

A.

1.Every health spa, before it enters into a health spa contract or membership agreement or accepts an initiation or prepayment fee in excess of Fifty Dollars ($50.00), shall file and maintain with the Administrator, in form and substance satisfactory to him, a bond with a corporate surety, from a company authorized to transact business in this state or a letter of credit from a bank insured by the Federal Deposit Insurance Corporation in the amounts indicated below: Number of unexpired Amount of bond contracts or membership agreements or letter of exceeding six (6) months credit 500 or less $30,000.00 501 to 1000 $40,000.00 1001 to 1500 $50,000.00 1501 to 2000 $60,000.00 2001 or more $70,000.00 2. The number of unexpired contracts or membership agreements exceeding six (6) months shall

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A. 1. Every health spa, before it enters into a health spa contract or membership agreement or accepts an initiation or prepayment fee in excess of Fifty Dollars ($50.00), shall file and maintain with the Administrator, in form and substance satisfactory to him, a bond with a corporate surety, from a company authorized to transact business in this state or a letter of credit from a bank insured by the Federal Deposit Insurance Corporation in the amounts indicated below: Number of unexpired Amount of bond contracts or membership agreements or letter of exceeding six (6) months credit 500 or less $30,000.00 501 to 1000 $40,000.00 1001 to 1500 $50,000.00 1501 to 2000 $60,000.00 2001 or more $70,000.00 2. The number of unexpired contracts or membership agreements exceeding six (6) months shall be separately calculated for each location where health spa services are offered. 3. Each separate location where health spa services are offered shall be considered a separate health spa and shall file a separate bond or letter of credit with respect thereto, even though the separate locations are owned or operated by the same owner. 4. No owner shall be required to file with the Administrator bonds or letters of credit in excess of Seventy Thousand Dollars ($70,000.00). If the seventy-thousand-dollar limit is applicable, then the bonds or letters of credit filed by such owner shall apply to all health spas owned or operated by the same owner. B. The bond or letter of credit required by this section shall be in favor of the state for the benefit of: 1. any buyer injured by having paid money to the health spa posting the bond or letter of credit for health spa services in a facility which fails to open within sixty (60) days after the date upon which the buyer and the health spa entered into a contract or membership agreement or goes out of business prior to the expiration of the buyer's health spa contract or membership agreement; or 2. any buyer injured as a result of a violation of the Oklahoma Health Spa Act by the health spa posting the bond or letter of credit. C. 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 canceled or terminated except with the consent of the Administrator.

Oklahoma § 59-2007 (Bond or letter of credit required.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Added by Laws 1987, c. 217, § 9, eff. Nov. 1, 1987. Amended by Laws 1988, c. 215, § 6, eff. Nov. 1, 1988. Renumbered from Title 15, § 775.7 by Laws 1988, c. 215, § 12, eff. Nov. 1, 1988; Laws 1991, c. 96, § 7, eff. Sept. 1, 1991.