(a) Refund to buyer.--The financial security required by section 11¹ shall be for the benefit of a buyer who sustains any loss or damage as a result of the breach of contract or bankruptcy by a health club.

(b) Recovery.--If an injured buyer does not receive a refund from the health club, he may file a claim with the surety, and, if the claim is not paid, the buyer may bring an action based on the bond and recover against the surety. In the case of a letter of credit that has been filed with the director, the buyer shall bring an action against the health club and thereafter submit the final judgment he obtains to the director requesting payment under the terms of the letter of credit.

(c) Statute of limitations.--Any claim under this section shall be filed no later than six months from the date on which the injury occurred.

(d) Limitation on liability of surety.--The aggregate liability of the bond or letter of credit to all persons for all breaches of the conditions of the bond or letter of credit shall in no event exceed the amount of bond or letter of credit. If claims filed exceed the amount of the bond, the surety shall distribute the amount of the bond as a standard percentage of the amount claimed by all buyers seeking relief under this section.

(e) Contract records.--Every health club shall maintain accurate records of the name, address, contract terms and payments of each buyer of health club services. These records shall be open for inspection and copying by the director during normal business hours or upon 48 hours' written notice.