SB 4175, enacted on 06/05/2008, requires Tennessee health clubs to post a bond in the amount of $25,000 with the Department of Commerce and Insurance; securities, cash, and a certificate of deposit are also acceptable. The bond must be sustained for two years after the health club halts doing business in the state. The new law allows the Attorney General to request the total amount of the bond to be granted to the state for consumer reimbursement.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.