Abingdon Precious Metal and Gem Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All precious metal and gem dealers operating in Abingdon, Virginia
- Purpose: To protect the public from financial harm if the precious metal and gem dealer violates the terms of their permit
- Who Regulates Precious Metal and Gem Dealers in Abingdon: The Abingdon Chief of Police
Background
Abingdon Code of Ordinances 18-100 requires all precious metal and gem dealers operating in the town to obtain a permit from the Abingdon Chief of Police. The Abingdon Town Council enacted the permitting requirement to ensure that precious metal and gem dealers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, precious metal and gem dealers must purchase and maintain a $10,000 surety bond to be eligible for a permit.
What is the Purpose of the Abingdon Precious Metal and Gem Dealer Bond?
Abingdon requires precious metal and gem dealers to purchase a surety bond as part of the application process to obtain a permit. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Abingdon Code of Ordinances 18-98. Specifically, the bond protects the public if the dealer engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the precious metal and gem dealer violates the terms of their permit.
How Can an Insurance Agent Obtain an Abingdon Precious Metal and Gem Dealer Surety Bond?
BondExchange makes obtaining an Abingdon Precious Metal and Gem Dealer bond easy. Simply log in to your account and use our keyword search to find the “Precious Metal Dealer” bond in our database. Don’t have a login? Gain Access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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Is a Credit Check Required for the Abingdon Precious Metal and Gem Dealer Bond?
No, a credit check is not required for the Abingdon Precious Metal and Gem Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all precious metal and gem dealers operating in the town, regardless of their credit history.
How Much Does the Abingdon Precious Metal and Gem Dealer Bond Cost?
The Abingdon Precious Metal and Gem Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Abingdon requires all precious metal and gem dealers to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Abingdon Code of Ordinances 18-91, a precious metal and gem dealer is a person who purchases and sells secondhand items containing precious metals such as gold, silver, jewelry, and other items containing precious metals or gems.
Exemptions to this definition include:
- Purchases of precious metals directly from manufacturers
- Qualified fiduciaries distributing an estate’s assets
- Banks, trust companies, or bank holding companies
- Repairing, restoring, or designing jewelry
- Purchases of nonprecious scrap metals
- Purchases or sales of coins
Virginia Code 54.1-4106 allows dealers to submit an irrevocable letter of credit in lieu of a surety bond.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Precious Metal and Gem Dealers Apply for a Permit in Abingdon?
Precious metal and gem dealers in Abingdon must navigate several steps to obtain a permit. Below are the general guidelines, but applicants should refer to the regulatory ordinances or the town’s Guide to Opening a Business for details on the process.
Permit Term – All Abingdon Precious Metal and Gem Dealer Permits expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Precious metal and gem dealers must purchase and maintain a $10,000 surety bond.
Step 2 – Contact the Town Hall
To obtain a permit application, dealers must contact the Town Hall. The town manager will walk them through the application process, provide them with all required forms, and answer any questions they may have. Precious metal and gem dealers must pay an annual application fee and all applicants must be approved by the Abingdon Chief of Police before receiving a permit.
How Do Abingdon Precious Metal and Gem Dealers Renew Their Permit?
Precious metal and gem dealers should contact the Town Hall to obtain a renewal application before their permit expires. Dealers must pay an annual renewal fee and ensure they renew their surety bond to avoid termination of their permit. All Abingdon Precious Metal and Gem Dealer Permits expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Precious Metal and Gem Dealers in Abingdon?
Abingdon does not require precious metal and gem dealers to purchase any additional insurance. Dealers must purchase and maintain a $10,000 surety bond.
How Do Abingdon Precious Metal and Gem Dealers File Their Bonds?
Precious metal and gem dealers should mail or deliver their completed bond forms, including the power of attorney, to the Town Hall at the following address:
Town of Abingdon
133 W. Main Street
P.O. Box 789
Abingdon, VA 24212
The bond requires signatures from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Date the bond is signed
- Notary acknowledgments
What Can Abingdon Precious Metal and Gem Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, precious metal and gem dealers in Abingdon must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Do not purchase or sell any stolen goods
- Maintain all required transaction records
What Other Insurance Products Can Agents Offer Precious Metal and Gem Dealers in Abingdon?
Abingdon does not require precious metal and gem dealers to purchase any liability insurance. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Abingdon Precious Metal and Gem Dealer Customers?
Abingdon unfortunately does not provide a public database of active precious metal and gem dealers in the town. We suggest contacting the Town Hall to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.