If the buyer‘s obligation is in the form of a negotiable promissory note, such contract shall state in boldface type on the face page of said contract that the buyer’s promissory note may be discounted and sold to third parties to whom the buyer will become obligated to make full payment. The selling or discounting of a negotiable promissory note which represents the buyer’s obligation under a health club service contract shall not affect the right of the buyer to cancel the contract, the method by which cancellation may be made, or the buyer’s rights under § 52-572g or Section 433.1 et seq. of Title 16 of the Code of Federal Regulations, as they may from time to time be amended. When a buyer’s obligation is in the form of a promissory note, the time period for payment of the note shall not exceed the term of the health club contract.
Terms Used In Connecticut General Statutes 21a-220
- Buyer: means a person who enters into, or receives the benefit of, a health club contract. See Connecticut General Statutes 21a-216
- Contract: A legal written agreement that becomes binding when signed.
- Health club: means any corporation, partnership, unincorporated association or other business enterprise offering facilities for the preservation, maintenance, encouragement or development of physical fitness or well-being in return for the payment of a fee entitling the buyer to the use of such facilities. See Connecticut General Statutes 21a-216
- Health club contract: means an agreement by which a buyer is entitled to membership in a health club or use of the facilities of a health club. See Connecticut General Statutes 21a-216
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.