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 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.
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