Virginia § 59.1-447 Bond or letter of credit required

Virginia Statutes

§ 59.1-447 — Bond or letter of credit required

Virginia § 59.1-447

Title 59.1TRADE AND COMMERCE

Ch. 36THE VIRGINIA TRAVEL CLUB ACT

This text of Virginia § 59.1-447 (Bond or letter of credit required) is published on Counsel Stack Legal Research, covering Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Va. Code Ann. § 59.1-447 (2026).

Text

A.Every travel club, before entering into a travel services agreement with a purchaser of travel services, shall file and maintain with the Commissioner, in a form and substance satisfactory to him, a bond with corporate surety from a company authorized to transact business in the Commonwealth, or a letter of credit from a bank insured by the Federal Insurance Deposit Corporation, or cash in the amounts indicated below:a Amount of Cash, Bond,bNumber of Contractsor Letter of Creditc0 to 1500$60,000d1501 to 1750$70,000e1751 to 2000$80,000f2001 or more$100,000B. The bond or letter of credit required by subsection A of this section shall be in favor of the Commonwealth of Virginia for the benefit of any purchaser who is damaged by any violation of this chapter.

C.The aggregate liability of

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A. Every travel club, before entering into a travel services agreement with a purchaser of travel services, shall file and maintain with the Commissioner, in a form and substance satisfactory to him, a bond with corporate surety from a company authorized to transact business in the Commonwealth, or a letter of credit from a bank insured by the Federal Insurance Deposit Corporation, or cash in the amounts indicated below:a
Amount of Cash, Bond,bNumber of Contractsor Letter of Creditc0 to 1500$60,000d1501 to 1750$70,000e1751 to 2000$80,000f2001 or more$100,000B. The bond or letter of credit required by subsection A of this section shall be in favor of the Commonwealth of Virginia for the benefit of any purchaser who is damaged by any violation of this chapter.

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 Commissioner. Bonds may be withdrawn by giving sixty-day advance written notice to the Commissioner, thereby releasing the surety from accruing future liability beyond the effective date of withdrawal. Such withdrawal shall not release the surety or otherwise cancel or terminate any liability existing at the time of the effective date of the withdrawal.