Fargo 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 Fargo, North Dakota
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbroker in Fargo: The City of Fargo Licensing and Permit Department
Fargo Code of Ordinances 25-1002 requires all pawnbrokers operating in the city to obtain a license from the Licensing and Permit Department. The Fargo City Commission 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 Fargo Pawnbroker Bond?
Fargo requires pawnbrokers 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 pawnbroker fails to comply with the regulations set forth in Fargo Code of Ordinances 25-1004. Specifically, the bond protects the public if the pawnbroker 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 pawnbroker violates the terms of their license.
How Can an Insurance Agent Obtain a Fargo Pawnbroker Surety Bond?
BondExchange makes obtaining a Fargo 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 Fargo Pawnbroker Bond?
No, a credit check is not required for the Fargo 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 Fargo Pawnbroker Bond Cost?
The Fargo Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Fargo requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. Pawnbrokers must obtain a separate license for each pawn shop location they plan to open. To paraphrase Fargo Code of Ordinances 25-1001, 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 Fargo?
Pawnbrokers in Fargo must navigate several steps to obtain a license. Below are the general guidelines, but applicants should visit the Licensing and Permit Department’s website for details on the process.
License Period – All Fargo Pawnbroker Licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond.
Step 2 – Complete the Application
225 4th St Street North
Fargo, ND 58102
Applicants must complete the form in its entirety and submit the following items:
- $250 license fee
- $250 one-time investigation fee
- Proof of liability insurance
- Three references
- Surety bond
Pawnbrokers must get their application notarized by a commissioned notary public, and all first-time applicants are subject to a background check. Contact the Licensing and Permit Department for assistance with the application process.
How do Fargo Pawnbrokers Renew Their Licenses?
Pawnbrokers should contact the Licensing and Permit Department to obtain a renewal application before their license expires. All Fargo Pawnbroker Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for the Fargo Pawnbrokers?
Fargo requires all businesses to obtain liability insurance coverage as a prerequisite to obtaining a business license (limits not specified). Pawnbrokers must also purchase and maintain a $5,000 surety bond.
How Do Fargo Pawnbrokers File Their Bonds?
Pawnbrokers should mail or deliver their completed bond forms, including the power of attorney, to the Licensing and Permit Department at the following address:
225 4th St Street North
Fargo, ND 58102
The bond requires signatures, including witness 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
- Date the bond goes into effect and expires
- Date the bond is signed
- Notary acknowledgments
What Can Fargo Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Fargo must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Maintain all required transaction records
- Return all pledged goods that have been paid for
What Other Insurance Products Can Agents Offer Pawnbrokers in Fargo?
Fargo requires all pawnbrokers to obtain liability 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 Fargo Pawnbroker Customers?
Fargo unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the Licensing and Permit Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.