HARRY HUGHES, Governor

4811

FOR the purpose of defining "future services agreement";
requiring. sellers of future services health club
agreements to make establish a certain escrow account;
providing for an the maintenance of a certain escrow
account; providing that in lieu of an escrow account a
seller may purchase a surety bond purchase a surety
bond or provide an irrevocable letter of credit or
satisfactory evidence of financial responsibility;
requiring a certain periodic adjustment of the amount
of the bond; providing for an action based on the bond
by a buyer if seller breaches the contract or becomes
bankrupt; providing certain other remedies for a buyer
under certain circumstances; requiring the maintenance
of certain records; permitting certain actions against
sureties of future services health club agreement
sellers; limiting the liability of a surety of a bonded
seller; and providing that certain actions constitute
an unfair or deceptive trade practice; defining certain
terms; allowing for a choice of remedies by the seller
in certain circumstances and by the buyer in other
circumstances; prohibiting automatic renewal clauses in
health club services agreements, except in certain
circumstances; providing for a cooling off period in
health club services agreements; and generally relating
to health club services.

BY adding to

Article - Commercial Law

Section 14-12B-01 through 14-12B-05 14-12B-06
14--12B-05, inclusive, to be under the new
subtitle "Subtitle 12B. Future Health Club
Services"

Annotated Code of Maryland

(1975 Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article - Commercial Law

SUBTITLE 12B. FUTURE HEALTH CLUB SERVICES

14-12B-01.

(A)   IN THIS SUBTITLE, THE FOLLOWING WORD HAS THE
MEANING INDICATED WORDS HAVE THE MEANINGS INDICATED.

(B)  (1) "FUTURE HEALTH CLUB SERVICES AGREEMENT" MEANS
AN AGREEMENT UNDER WHICH: