Hempstead Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs it: All secondhand dealers operating in Hempstead, New York
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in Hempstead: The Hempstead Town Clerk
Background
Hempstead Town Code 113-3 requires all secondhand dealers operating in the town to obtain a license from the Town Clerk prior to conducting business. The Hempstead Town Council enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a $2,000 surety bond to be eligible for a license.
What is the Purpose of the Hempstead Secondhand Dealer Bond?
Hempstead requires secondhand dealers to purchase a surety bond as part of the application process to obtain a license. The bond protects the public from financial harm if the secondhand dealer fails to comply with the regulations set forth in Hempstead Town Code 113-4. Specifically, the bond protects the public if the secondhand dealer engages in any acts of fraud or breaches any consumer contracts. In short, the bond is a type of insurance that protects the public if the secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Hempstead Secondhand Dealer Surety Bond?
BondExchange makes obtaining a Hempstead surety bond easy. Simply login to your account and use our keyword search to find the “Secondhand 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 (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 Hempstead Secondhand Dealer Bond?
No, a credit check is not required for the Hempstead Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers operating in the town, regardless of their credit history.
How Much Does the Hempstead Secondhand Dealer Bond Cost?
The Hempstead Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Hempstead Secondhand Dealer Bond?
Hempstead requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Hempstead Town Code 113-2, a secondhand dealer is a person engaged in the business of buying, selling, or trading previously owned property for the purpose of reselling or exchanging the property.
Exemptions to this definition include:
- Automobiles, pianos, books, or magazines
- Rugs, tapestries, artists’ burlaps, paintings, or other artwork
- Refunds or exchanges of new merchandise
- Antiques with a value of less than $250
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 Secondhand Dealers Apply for a License in Hempstead?
Secondhand dealers in Hempstead must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Hempstead General Secondhand Dealer Licenses expire on April 1 of each year and must be renewed before the expiration date. All Hampstead Management and Exposition Secondhand Dealer Licenses expire one month from the date of issuance.
Step 1 – Determined the Class of License
Hempstead requires secondhand dealers to obtain a specific license class based on the nature of the business, as outlined below:
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- General: Dealers with a physical place of business in the Town of Hempstead who plans to sell secondhand goods for a full year
- Management: Dealers with a physical place of business in the Town of Hempstead who plan to sell secondhand goods for up to a month, typically for a fair or an event
- Exposition: Dealers with no physical place of business in the Town of Hempstead who plan to sell secondhand goods for up to a month, typically for a fair or an event
Dealers seeking to obtain an Exposition Secondhand Dealer license are not required to purchase a surety bond.
Step 2 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $2,000 surety bond.
Step 3 – Submit an Application
Secondhand dealers must submit an application to the Town Clerk’s Office at the following address:
1 Washington Street
Hempstead, NY 11550
Dealers must complete the application in its entirety, get it notarized, and ensure they submit a $110 license fee along with a surety bond. Additionally, all applicants will be subject to a background check. Contact the Town Clerk for assistance in the application process.
How Do Hempstead Secondhand Dealers Renew Their Licenses?
Secondhand dealers must submit an application for license renewal to the Town Clerk’s Office at the following address:
1 Washington Street
Hempstead, NY 11550
Secondhand dealers must pay a $110 renewal fee and also renew their surety bond to avoid termination of their license. All Hempstead General Secondhand Dealer Licenses expire on April 1 of each year and must be renewed before the expiration date. All Hampstead Management and Exposition Secondhand Dealer Licenses expire one month from the date of issuance.
What are the Insurance Requirements for Secondhand Dealers in Hempstead?
Hempstead does not require secondhand dealers to purchase any additional insurance. Secondhand dealers must purchase and maintain a $2,000 surety bond.
How Do Hempstead Secondhand Dealers File Their Bonds?
Secondhand dealers should mail their completed bond forms, including the power of attorney, to the Town Clerk at the following address:
1 Washington Street
Hempstead, NY 11550
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
- Name of the obligee and the license type being applied for
- Date the bond is signed and goes into effect
- Bond amount
What Can Hempstead Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in Hempstead must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Provide all goods that have been paid for
What Other Insurance Products Can Agents Offer Secondhand Dealers in Hempstead?
Most reputable secondhand dealers will purchase liability insurance. 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. However, a list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Hempstead Secondhand Dealer Customers?
Hempstead unfortunately does not provide a public database of active secondhand dealers in the town. We suggest contacting the Town Clerk to obtain this information. Contact BondExchange for additional marketing resources. Also, agents can leverage our print-mail relationships for discounted mailing services.