HARRY HUGHES, Governor

4813

LIABILITIES ON THE AGREEMENTS OR $25,000,000, WHICHEVER IS
GREATER.

(B)(1) DEPOSITS TO AND WITHDRAWALS FROM THE ESCROW
ACCOUNT MAY BE MADE AS ADDITIONAL AGREEMENTS ARE ENTERED
INTO OR AS SERVICES ARE RENDERED UNDER THE AGREEMENTS.

(2) HOWEVER, THE ESCROW ACCOUNT MAY NOT CONTAIN
LESS THAN 10 PERCENT OF THE TOTAL OUTSTANDING LIABILITIES OR
$25,000, WHICHEVER IS GREATER.

14-12B-03.

(A) ANY PERSON WHO SELLS FUTURE HEALTH CLUB SERVICES
AGREEMENTS SHALL MAINTAIN AN ACCURATE RECORD OF THE ESCROW
ACCOUNT ESTABLISHED UNDER § 14-12B-02 OF THIS SUBTITLE,
INCLUDING:

(1) A RECORD OF ALL DEPOSITS, WITHDRAWALS, AND
THE REMAINING BALANCE; AND

(2) SUFFICIENT BUSINESS RECORDS TO DETERMINE THE
QUARTERLY OUTSTANDING LIABILITIES UNDER THE FUTURE HEALTH
CLUB SERVICES AGREEMENTS AT ANY TIME.

(B) A BUYER OF HEALTH CLUB SERVICES WHO SUFFERS OR
SUSTAINS ANY LOSS OR DAMAGE BY REASON OF BREACH OF CONTRACT
OR BANKRUPTCY BY THE SELLER OF THE HEALTH CLUB AGREEMENT MAY
BRING AN ACTION BASED ON THE ESCROW ACCOUNT AND RECOVERY
SHALL BE ON A PRO-RATA BASIS.

(B) (C) THE RECORDS REQUIRED TO BE MAINTAINED UNDER
THIS SECTION SHALL BE OPEN TO INSPECTION BY THE DIVISION AT
ANY TIME DURING NORMAL BUSINESS HOURS.

14-12B-04.

(A) (1) IN LIEU OF THE ESCROW ACCOUNT REQUIRED UNDER
SECTION 14-12B OF THIS SUBTITLE, A PERSON WHO SELLS
FUTURE HEALTH CLUB SERVICES AGREEMENTS MAY PURCHASE A
SURETY BOND IN AN AMOUNT NOT LESS THAN 10 PERCENT OF THE
TOTAL OUTSTANDING LIABILITIES ON THE PERSON'S FUTURE
SERVICES AGREEMENTS OR $25,000, WHICHEVER IS GREATER. THE
AMOUNT OF THE SURETY BOND SHALL BE ADJUSTED SEMIANNUALLY.

(A) (1) A PERSON WHO SELLS HEALTH CLUB SERVICES
AGREEMENTS SHALL PURCHASE A SURETY BOND IN AN AMOUNT NOT
LESS THAN $50,000, OR SHALL FILE WITH THE DIVISION AN
IRREVOCABLE LETTER OF CREDIT OR OTHER EVIDENCE OF FINANCIAL
RESPONSIBILITY SATISFACTORY TO THE DIVISION IN AN EQUIVALENT
AMOUNT.

(2) A BUYER OF FUTURE HEALTH CLUB SERVICES WHO
SUFFERS OR SUSTAINS ANY LOSS OR DAMAGE BY REASON OF BREACH
OF CONTRACT OR BANKRUPTCY BY THE SELLER OF THE FUTURE HEALTH