Prepayment of contracts, treatment of funds, notice to attorney general, exceptions
If a health spa wants to collect money from people before it opens, it has to tell the attorney general's office first. All that early money goes into a special bank account and stays there until the spa is open and ready to serve people. The money can only be taken out after the attorney general says it's okay in writing. Health spas that are already registered and have posted a $25,000 bond or letter of credit do not have to follow these rules.
407.329. of contracts, treatment of funds, notice to , exceptions. — 1. Each selling contracts or health spa services on a shall notify the office of the attorney general of the proposed location of the spa for which prepayments will be and shall all funds received from such prepayment contracts in an account established in a to transact business in this state until the health spa has commenced operations. The account shall be established and maintained only in a financial institution which agrees in writing with the office of the attorney general to hold all funds deposited and not to such funds until receipt of written from the office of the attorney general. The prepayment funds deposited will be eligible for withdrawal by the health spa after the health spa has opened and is providing services its health spa contracts and the office of the attorney general gives written authorization for withdrawal.
2. The of this section shall not apply to any health spa pursuant to the provisions of section 407.327 which has posted a or in the amount of twenty-five thousand dollars.
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Source & history notes
(L. 1988 S.B. 486 § 3)
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.