Eatontown Precious Metal Dealer Bond: A Comprehensive Guide

February 20, 2023

Eatontown Precious Metal Dealer Bond

This guide provides information for insurance agents to help their customers obtain an Eatontown Precious Metal Dealer bond.

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $10,000
  • Who Needs it: All precious metal dealers operating in the borough of Eatontown, New Jersey
  • Purpose: To protect the public from financial harm if the dealer violates the terms of their license
  • Who Regulates Precious Metal Dealers in Eatontown: The Eatontown Borough Clerk’s Office

Background

Eatontown Code of Ordinances 247-3 requires all precious metal dealers operating in the borough to obtain a license from the Borough Clerk’s Office. The Eatontown Borough Council enacted the licensing requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, precious metal dealers must purchase and maintain a $10,000 surety bond to be eligible for licensure.

Eatontown also requires all businesses that purchase, sell, or pawn any precious metals or other secondhand goods to obtain a license and purchase a $10,000 surety bond.

What is the Purpose of the Eatontown Precious Metal Dealer Bond?

Eatontown requires precious metal dealers to purchase a surety bond as part of the application process to obtain a business license. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Eatontown Code of Ordinances 247-7. 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 dealer violates the terms of their license.

Eatontown Precious Metal Bond Form
Eatontown Precious Metal Bond Form

How Can an Insurance Agent Obtain an Eatontown Precious Metal Dealer Surety Bond?

BondExchange makes obtaining an Eatontown Precious Metal 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? Enroll 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 Eatontown Precious Metal Dealer Bond?

No, a credit check is not required for the Eatontown Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all dealers operating in the borough, regardless of their credit history.

How Much Does the Eatontown Precious Metal Dealer Bond Cost?

The Eatontown Precious Metal Dealer bond costs just $100 per year.

Who is Required to Purchase the Bond?

Eatontown requires all dealers that purchase, sell, or pawn precious metals or other secondhand goods to purchase a $10,000 surety bond as a prerequisite to obtaining a business license. To paraphrase Eatontown Code of Ordinances 247-2, a precious metal dealer is a person who purchases and sells secondhand items containing precious metals such as jewelry, coins, watches, and other items containing precious metals or gems.

Dealers of secondhand goods defined under Eatontown Code of Ordinances 247-2 and pawnbrokers of secondhand goods or precious metals must also purchase a $10,000 surety bond. The following types of sales are exempt from the bonding requirement:

  • Judicial sales by executors or administrators
  • Private auction or occasional sales of household goods
  • Auctions of real estate
  • Sales of coins or stamps by collectors

How do Precious Metal Dealers Apply for a License in Eatontown?

Precious metal dealers in Eatontown must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the Borough Clerk’s Office for details on the process.

License Period – All Eatontown Precious Metal Dealer Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.

Step 1 – Purchase a Surety Bond

Precious metal dealers must purchase and maintain a $10,000 surety bond.

Step 2 – Complete the Application

Precious metal dealers must submit a completed application to the Borough Clerk’s Office by mail to the following address:

47 Broad Street
Eatontown, NJ 07724

Applicants must complete the form in its entirety and submit the following items:

    • $300 license fee
    • $10,000 surety bond

All dealers will be subject to a background check by the Eatontown Police Department.

How do Eatontown Precious Metal Dealers Renew Their License?

Precious metal dealers should contact the Borough Clerk’s Office to obtain a renewal application before their license expires. Dealers are required to pay a $200 fee when renewing their license. All Eatontown Precious Metal Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.

What are the Insurance Requirements for Eatontown Precious Metal Dealers?

Eatontown does not require precious metal dealers to purchase any form of liability insurance. Dealers must purchase and maintain a $10,000 surety bond.

How Do Eatontown Precious Metal Dealers File Their Bonds?

Precious metal dealers should mail or deliver their completed bond forms, including the power of attorney, to the Borough Clerk’s Office at the following address:

47 Broad Street
Eatontown, NJ 07724

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 goes into effect and expires
  • Date the bond is signed
  • Bond amount

What Can Eatontown Precious Metal Dealers do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, precious metal dealers in Eatontown must ensure that they:

  • Do not engage in any acts of fraud
  • Faithfully honor all consumer contracts
  • Maintain all required transaction records

What Other Insurance Products Can Agents Offer Precious Metal Dealers in Eatontown?

Eatontown requires all precious metal dealers with employees to obtain workers’ compensation insurance coverage as a prerequisite to obtaining a business license. 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 Eatontown Precious Metal Dealer Customers?

Eatontown unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the Borough Clerk’s Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.