Cairo Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Cairo, Georgia
- Purpose: To protect the public from financial harm if the pawnbroker engages in unethical business practices
- Who Regulates Pawnbrokers in Cairo: The Cairo City Clerk’s Office
Background
Cairo Code of Ordinances 14-1 requires all pawnbrokers operating in the city to obtain an occupational tax license, also known as a business license, with the City Clerk’s Office before conducting business. The Cairo City Council enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must purchase and maintain a $5,000 surety bond to be eligible for licensure.
What is the Purpose of the Cairo Pawnbroker Bond?
Cairo requires pawnbrokers to purchase a surety bond as part of the application process to obtain an occupational tax license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in the Cairo Code of Ordinances 14-64. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or fails to report any stolen property. In short, the bond is a type of insurance that protects the public if the pawnbroker engages in unethical business practices.
How Can an Insurance Agent Obtain a Cairo Pawnbroker Surety Bond?
BondExchange makes obtaining a Cairo Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” 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.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Cairo Pawnbroker Bond?
No, a credit check is not required for the Cairo Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers in the city regardless of their credit history.
How Much Does the Cairo Pawnbroker Bond Cost?
The Cairo Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Cairo Pawnbroker Bond?
Cairo requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining an occupational tax license. To paraphrase the Cairo Code of Ordinances 14-60, a pawnbroker is a person who issues loans to individuals that leave their property, as collateral, for the broker to sell on condition that the customer may repurchase the property within a fixed period of time.
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 Pawnbrokers Apply for a License in Cairo?
Pawnbrokers in Cairo must navigate several steps to secure an occupational tax license. Below are the general guidelines, but applicants should contact the City Clerk’s Office for details on the process.
License Period – All Cairo Occupational Tax Licenses expire on March 31st of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers in Cairo must purchase and maintain a $5,000 surety bond.
Step 2 – Complete an Application
Pawnbrokers must submit a completed application to the City Clerk’s Office at the following address:
City Clerk’s Office
119 North Broad Street
Cairo, Georgia 39828
Brokers must ensure that they complete the application in its entirety and submit a surety bond along with an application fee in an amount determined by the City Clerk. Contact the Cairo City Clerk for additional details on the application process.
How do Cairo Pawnbrokers Renew Their License?
Pawnbrokers should contact the City Clerk’s Office to obtain a renewal application before their license expires. All Cairo Occupational Tax Licenses expire on March 31st of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Cairo Pawnbrokers?
Cairo does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining an occupational tax license. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do Cairo Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the following address:
City Clerk’s Office
119 North Broad Street
Cairo, Georgia 39828
The surety bond requires signatures from both the surety company that issues the bond and from the broker. 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
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Cairo Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Cairo must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
- Report all stolen goods that come into their possession
What Other Insurance Products Can Agents Offer Pawnbrokers in Cairo?
Cairo does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining an occupational tax license. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of 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 Cairo Pawnbroker Customers?
Cairo unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk’s Office for this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.