Gaston County Pawnbroker Bond: A Complete Guide
June 17, 2022
This guide provides information for insurance agents to help their customers obtain a Gaston County Pawnbroker Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Gaston County, North Carolina
- Purpose: To ensure the public will receive compensation for any damages should the pawnbroker violate licensing law
- Who Requires the Bond: Gaston County, North Carolina
Gaston County Code of Ordinances 10-123 requires all pawnbrokers operating in the county to obtain a license before conducting business. The Gaston County Board of Commissioners 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. Additionally, North Carolina Statute 66-399 mandates that all pawnbrokers operating in the state file a bond with their local municipal authority before conducting business.
What is the Purpose of the Gaston County Pawnbroker Bond?
Gaston County requires pawnbrokers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the broker fails to comply with the regulations set forth in Gaston County Code of Ordinances 10-130 and North Carolina Statute 66-399. Specifically, the bond protects the public in the event the broker commits any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the pawnbroker breaks licensing law.
How Can an Insurance Agent Obtain a Gaston County Pawnbroker Surety Bond?
BondExchange makes obtaining a Gaston County Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Gaston” 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.
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Is a Credit Check Required for the Gaston County Pawnbroker Bond?
No, a credit check is not required for the Gaston County Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the county, regardless of their credit history.
How Much Does the Gaston County Pawnbroker Bond Cost?
The Gaston County Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Bond?
Gaston County requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Gaston County Code of Ordinances 10-121, a pawnbroker is a person who issues loans at interest to individuals that leave their property, as collateral, for the broker to sell or purchases goods for resale from a dealer/trader.
How do Pawnbrokers Apply for a License in Gaston County?
Pawnbrokers in Gaston County must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Gaston County Pawnbroker Licenses expire on May 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 – Contact the County
To apply for a pawnbroker license in Gaston County, applicants should contact the county at (704) 866-3000. The county will provide the broker with an application form, walk them through the application process, and answer any questions they may have.
Pawnbrokers are required to submit the following items with their license application:
- Statement indicating the net assets or capital the broker will put towards the business as well as an unaudited statement from an accountant or CPA verifying the information
- Affidavit by the broker stating they have never been convicted of a felony as well as a certificate from the county police department verifying this information
How do Pawnbrokers in Gaston County Renew Their Licenses?
Prior to the license expiration date, the county will contact the broker with instructions on how to complete the renewal process. All Gaston County Pawnbroker Licenses expire on May 31 of each year and must be renewed before the expiration date
What are the Insurance Requirements for the Gaston County Pawnbroker License?
Gaston County does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do Gaston County Pawnbrokers File Their Bonds?
Pawnbrokers should mail their completed bond forms, including the power of attorney, to the following address:
Gaston County Code Enforcement
PO Box 1578
Gastonia, NC 28053
The surety bond requires signatures from the surety company that issues the bond, the pawnbroker, and a witness for the broker. The surety company should include the following information on the bond form:
- Legal name, license classification, and address of the entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Date the bond is signed
What Can Gaston County Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Gaston County must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Pawnbrokers in Gaston County?
Gaston County does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a business 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 Gaston County Pawnbroker Customers?
Gaston County unfortunately does not provide a public database of active pawnbrokers in the county. We suggest contacting the county to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.