Hendersonville Pawnbroker Bond

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Hendersonville Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a Hendersonville Pawnbroker Bond

At a Glance:

  • Average Cost: $100 per year or $10 per month
  • Bond Amount: $5,000
  • Who Needs it: All pawnbrokers operating in Hendersonville, North Carolina
  • Purpose: To ensure the public will receive compensation for any damages should the pawnbroker violate licensing law
  • Who Requires the Bond: The City of Hendersonville, North Carolina
Hendersonville Pawnbroker Bond Form
Hendersonville Pawnbroker Bond Form


Hendersonville Code of Ordinances 42-36 dictates that the city will adopt all of the provisions of the North Carolina Pawnbrokers Modernization Act of 1989, which states that all pawnbrokers operating in the state must obtain a license with the city they are operating in. The Hendersonville City Council adopted the state’s 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 Hendersonville Pawnbroker Bond?

Hendersonville 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 North Carolina Statute 91A-14. 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 Hendersonville Pawnbroker Surety Bond?

BondExchange makes obtaining a Hendersonville Pawnbroker Bond easy. Simply login to your account and use our keyword search to find the “Hendersonville” 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 Hendersonville Pawnbroker Bond?

No, a credit check is not required for the Hendersonville Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the city, regardless of their credit history.

How Much Does the Hendersonville Pawnbroker Bond Cost?

The Hendersonville Pawnbroker bond costs just $100 per year or $10 per month.

Who is Required to Purchase the Hendersonville Pawnbroker Bond?

Hendersonville requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase North Carolina Statute 91A-3, 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.

Hendersonville Pawnbroker Bond

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 Hendersonville?

Pawnbrokers in Hendersonville 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.

Step 1 – Meet the Prerequisites

Hendersonville requires all pawnbroker license applicants to:

    • Be of good moral character, and
    • Not have been convicted of a felony within the past 10 years

Step 2 – Contact the Development Assistance Department

To apply for a pawnbroker license in Hendersonville, applicants should contact the city’s Development Assistance Department. The department will walk the broker through the application process, provide them with any forms that must be submitted, 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 in the past 10 years as well as a certificate from the county police department verifying this information

Step 3 – Purchase a Surety Bond

Pawnbrokers must purchase and maintain a $5,000 surety bond

What are the Insurance Requirements for the Hendersonville Pawnbroker License?

Hendersonville 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 Hendersonville Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Development Assistance Department at the following address:

100 N King Street
Hendersonville, NC 28792

The surety bond requires signatures from both the surety company that issues the bond and from 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 and state of incorporation
  • Bond amount
  • Date the bond goes into effect
  • Date the bond is signed

What Can Hendersonville Pawnbrokers do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, pawnbrokers in Hendersonville 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 Hendersonville?

Hendersonville 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 Hendersonville Pawnbroker Customers?

Hendersonville unfortunately does not provide a public database of active pawnbrokers. We suggest contacting the city to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

Hendersonville Pawnbroker Bond