Monroe Pawnbroker Bond

Enter the business name to obtain a quote:

Monroe Pawnbroker Bond: A Comprehensive Guide

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

At a Glance:

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


Monroe Code of Ordinances 114.06 requires all pawnbrokers operating in the city to obtain a license from the Chief of Police. The Monroe City Council 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 Monroe Pawnbroker Bond?

Monroe 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 business fails to comply with the regulations set forth in Monroe Code of Ordinances 114.06 and  North Carolina Statute 66-399. Specifically, the bond protects the public in the event the business 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 Monroe Pawnbroker Surety Bond?

BondExchange makes obtaining a Monroe Pawnbroker bond easy. Simply log in to your account and use our keyword search to find the “Monroe” 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.

Not an agent? Then let us pair you with one!

BX Agent Finder Link

Click the above image to find a BX Agent near you

Is a Credit Check Required for the Monroe Pawnbroker Bond?

No, a credit check is not required for the Monroe 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 Monroe Pawnbroker Bond Cost?

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

Who is Required to Purchase the Monroe Pawnbroker Bond?

Monroe requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase North Carolina statute 66-387, 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.

Monroe 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 Monroe?

Pawnbrokers in Monroe 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 Monroe Pawnbroker Licenses expire annually and must be renewed before the expiration date

Step 1 – Contact the Police Department

To obtain a pawnbroker license, applicants should contact the Monroe Police Department at (704) 282-4728. The department will walk your customer through the application process, and provide them with an application form. Pawnbrokers must submit the following items with their application:

    • Statement indicating the net assets or capital the broker will put towards the business as well as an unaudited statement from a CPA verifying the information
    • Affidavit by the broker stating they have never been convicted of a felony as well as a certificate from the police department verifying this information

Step 2 – Purchase a Surety Bond

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

How do Monroe Pawnbrokers Renew Their Licenses?

Pawnbrokers in Monroe must renew their licenses annually and can do so by contacting the police department at (704) 282-4728.

Do Monroe Pawnbrokers Need a Precious Metals Dealer Permit?

No, as North Carolina Statute 66-406 explicitly exempts licensed pawnbrokers from precious metal permitting requirements.

What are the Insurance Requirements for the Monroe Pawnbroker License?

Monroe 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 Monroe Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Monroe Police Department at:

Monroe Police Department
P.O. Box 69
Monroe, NC 28111

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 and license classification of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Entity requiring the bond
  • Bond amount
  • Date the bond goes into effect
  • Date the bond is signed

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

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

Monroe 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 Monroe Pawnbroker Customers?

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

Monroe Pawnbroker Bond