Falls Church Precious Metal 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 dealers operating in Falls Church, Virginia
- Purpose: To protect the public from financial harm if the precious metal dealer violates the terms of their permit
- Who Regulates Precious Metal Dealers in Falls Church: The Falls Church Police Department
Background
Virginia Code 54.1-4108 requires all precious metal dealers operating in the state to obtain a permit from their city or county’s local law enforcement agency. The Virginia legislature enacted the permitting requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, precious metal dealers must purchase and maintain a $10,000 surety bond to be eligible for a permit.
What is the Purpose of the Falls Church Precious Metal Dealer Bond?
Falls Church requires precious metal 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 Falls Church Code of Ordinances 8-242. 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 permit.
How Can an Insurance Agent Obtain a Falls Church Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Falls Church 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? 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 ensure 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 Falls Church Precious Metal Dealer Bond?
No, a credit check is not required for the Falls Church Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all precious metal dealers operating in the city, regardless of their credit history.
How Much Does the Falls Church Precious Metal Dealer Bond Cost?
The Falls Church Precious Metal Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Falls Church Precious Metal Dealer Bond?
Falls Church requires all precious metal dealers to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Falls Church Code of Ordinances 8-235, a precious metal 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 from the general public.
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
- Antique or gem exhibitions sponsored by nonprofit organizations
- Repairing, restoring, or designing jewelry
- Purchases of nonprecious scrap metals
- Purchases or sales of coins
Virginia Code 54.1-4106 allows dealers to obtain an irrevocable letter of credit in lieu of a surety bond. Surety bonds are generally considered the better option for businesses as they free up working capital. For more information on whether your customer should purchase a bond or deposit cash, check out our Surety Bonds vs. Letters of Credit article here.
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 Dealers Apply for a Permit in Falls Church?
Precious metal dealers in Falls Church must navigate several steps to obtain a permit. Below are the general guidelines, but applicants should refer to the Falls Church Police Department’s website for details on the process.
Permit Term – All Falls Church Precious Metal Dealer Permits expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Obtain Documentation for Weighing Devices
Precious metal dealers must first obtain documentation that all weighing devices to be used in the business have been approved by a weights and measures official. Dealers can contact the Warrenton Office at (540) 347-6383 to obtain this documentation.
Step 2 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $10,000 surety bond.
Step 3 – Complete an Application
Precious metal dealers should submit a completed application to the Falls Church Police Department at the following address:
300 Park Avenue, Suite G2
Falls Church, VA 22046
Dealers must complete the application in its entirety, get it notarized, and ensure they submit the following items:
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- Surety bond or letter of credit
- Documentation for weighing devices
- Affidavit for release of information
- Criminal conviction history
Applicants convicted of a felony or crime of moral turpitude within the past seven years are ineligible for a precious metal dealer permit.
Step 4 – Contact the Police Department
After submitting an application, dealers must contact the Police Department by email or phone to schedule an appointment. The department will walk them through the rest of the application process and ensure they have met all requirements. During the appointment, dealers are required to be fingerprinted by the department, complete a background check, and submit a digital photograph of themselves.
Step 5 – Pay the Fee
After meeting with the police department, precious metal dealers must submit a $250 application fee to the City Treasurer online here. Applicants should contact the Falls Church Police Department for additional assistance in the application process.
How Do Falls Church Precious Metal Dealers Renew Their Permit?
Precious metal dealers should submit a completed renewal application to the Falls Church Police Department at the following address:
300 Park Avenue, Suite G2
Falls Church, VA 22046
Dealers must pay a $250 renewal fee and ensure they renew their surety bond to avoid termination of their permit. All Falls Church Precious Metal 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 Dealers in Falls Church?
Falls Church does not require precious metal dealers to purchase any additional insurance. Precious metal dealers must purchase and maintain a $10,000 surety bond.
How Do Falls Church Precious Metal Dealers File Their Bonds?
Precious metal dealers should mail or deliver their completed bond forms, including the power of attorney, to the Falls Church Police Department at the following address:
300 Park Avenue, Suite G2
Falls Church, VA 22046
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 and address of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Signing date of the bond
What Can Falls Church Precious Metal Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Falls Church 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
- Obtain identification before each transaction
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Falls Church?
Falls Church does not require precious metal dealers to purchase 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 Falls Church Precious Metal Dealer Customers?
Falls Church unfortunately does not provide a public database of active precious metal dealers in the city. However, we suggest contacting the Falls Church Police Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.