Oklahoma § 59-2003 - Presale contracts or membership agreements - Notification

§ 59-2003. Presale contracts or membership agreements - Notification

of location - Deposit of funds - Withdrawal of funds - Refunds Exemptions.

A. 1. Except as otherwise provided in this section, each

health spa which offers or sells contracts or membership agreements

or health spa services on a presale basis shall notify the

Administrator of the proposed location of the spa for which presale

monies will be solicited and shall deposit all funds received from

such presale contracts or membership agreements in an account

established in a financial institution authorized to transact

business in this state until the health spa has commenced operations

and has remained open for a period of sixty (60) days. The account

shall be established and maintained only in a financial institution

Oklahoma Statutes - Title 59. Professions and Occupations

which agrees in writing with the Administrator to hold all funds

deposited and not to release such funds until receipt of written

authorization from the Administrator. The presale funds deposited

will be eligible for withdrawal by the health spa after the health

spa has been open and providing services pursuant to its health spa

contracts or membership agreements for sixty (60) days and the

Administrator gives written authorization for withdrawal.

2. Any buyer who has paid money which is on deposit in a

presale account may, upon written authorization from the

Administrator, obtain a refund from the financial institution

holding such account if the health spa has not been substantially

completed and opened within six (6) months of the date of the

buyer's health spa contract or membership agreement.

B. The provisions of subsection A of this section shall not

apply to:

1.

a.

any health spa duly registered under the provisions of

Section 2002 of this title which has filed with the

Administrator a current financial statement, certified

by an accounting firm or individual holding a permit

to practice public accounting in this state

indicating:

(1) a net worth in excess of One Million Dollars

($1,000,000.00), or

(2) total assets in excess of Five Million Dollars

($5,000,000.00).

b. For purposes of this paragraph:

(1) "current" means that the ending period of the

financial statement is not over eighteen (18)

months prior to the date of the filing of such

statement, and

(2) the financial statement filed by the health spa

may include the financial results of any

corporation controlled by, or that is under

common control with, the health spa; or

2. any health spa duly registered under the provisions of

Section 2002 of Title 59 of the Oklahoma Statutes which has posted a

bond or letter of credit in the amount of Seventy Thousand Dollars

($70,000.00) as provided for in Section 2007 of this title and has

been in continuous operation in Oklahoma for at least eighteen (18)

months prior to the sale of prepayment contracts or membership

agreements.

Added by Laws 1987, c. 217, § 5, eff. Nov. 1, 1987. Amended by Laws

1988, c. 215, § 5, eff. Nov. 1, 1988. Renumbered from Title 15, §

775.3 by Laws 1988, c. 215, § 12, eff. Nov. 1, 1988; Laws 1991, c.

96, § 3, eff. Sept. 1, 1991.

Oklahoma Statutes - Title 59. Professions and Occupations