Prepayment Basis Notification

PURPOSE: This rule prescribes and clarifies the procedure for filing, with the attorney general’s office, financial institution agreements to deposit all funds received from health spas selling contracts or health spa services on a prepayment basis. (1) In the event that a health spa is required by the provision of section 407.329, RSMo, to maintain an account established in a financial institution authorized to transact business in the state of Missouri, until the health spa has commenced operation, the health spa must provide written notification to the attorney general’s office of the proposed location of the health spa prior to the selling of any health spa contracts or health spa services on a prepayment basis. (2) The financial institution shall provide to the attorney general’s office written verification that the health spa has opened an account for the purpose of depositing all funds received from the sale of health spa contracts or health spa services on a prepayment basis and the financial institution shall agree to not release the funds until written authorization for withdrawal is received from the attorney general’s office. The verification shall contain the following information: (A) The name of the health spa; (B) The proposed location of the health spa; (C) The account number established by the health spa; (D) The name of the financial institution; and (E) The date the account was established. (3) Written verification from the financial institution must be signed and dated by a corporate officer authorized to sign the verification on behalf of the financial institution. The verification shall be notarized before it is filed with the attorney general’s office. AUTHORITY: sections 407.145, RSMo 1986 and 407.329, RSMo Supp. 1988.* Emergency rule filed Aug. 29, 1988, effective Sept. 9, 1988, expired Dec. 24, 1988. Original rule filed Aug. 29, 1988, effective Jan. 13, 1989. *Original authority: 407.145, RSMo 1986 and 407.327, RSMo 1988.