New Rochelle Pawnbroker Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All pawnbrokers operating in New Rochelle, New York
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in New Rochelle: The New Rochelle City Clerk
Background
New Rochelle Municipal Code 227-2 requires all pawnbrokers, also known as collateral loan brokers, operating in the city to obtain a license from the New Rochelle City Clerk. The New Rochelle 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 $1,000 surety bond to be eligible for a license.
What is the Purpose of the New Rochelle Pawnbroker Bond?
New Rochelle requires pawnbrokers 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 pawnbroker fails to comply with the regulations set forth in New Rochelle Municipal Code 227-3. Specifically, the bond protects the public if the pawnbroker 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 pawnbroker violates the terms of their license.
How Can an Insurance Agent Obtain a New Rochelle Pawnbroker Surety Bond?
BondExchange makes obtaining a New Rochelle 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 New Rochelle Pawnbroker Bond?
No, a credit check is not required for the New Rochelle 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 New Rochelle Pawnbroker Bond Cost?
The New Rochelle Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the New Rochelle Pawnbroker Bond?
New Rochelle requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a license. To paraphrase New Rochelle Municipal Code 227-1, a pawnbroker is a person who issues loans at interest 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 New Rochelle?
Pawnbrokers in New Rochelle must navigate several steps to obtain a license. Below are the general guidelines, but applicants refer to the application checklist for details on the process.
License Period – All New Rochelle Pawnbroker Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $1,000 surety bond.
Step 2 – Submit an Application
Pawnbrokers must submit their completed application to the City Clerk’s Office by mail or in person at the following address:
City Hall
515 North Avenue
New Rochelle, NY 10801
Brokers must complete the form in its entirety and include the completed surety bond form along with a $40 license fee when submitting. Applicants will be subject to a background check by the New Rochelle Police Department. Contact the City Clerk’s Office for additional assistance in the application process.
How Do New Rochelle Pawnbrokers Renew Their Licenses?
To renew their license, pawnbrokers must submit a completed renewal application and a $40 license fee to the City Clerk at the following address:
City Hall
515 North Avenue
New Rochelle, NY 10801
All New Rochelle Pawnbroker Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Pawnbrokers in New Rochelle?
New Rochelle does not require pawnbrokers to purchase any form of liability insurance. However, brokers may need to obtain insurance as a prerequisite to obtaining a state business license. Pawnbrokers must purchase and maintain a surety bond.
How Do New Rochelle Pawnbrokers File Their Bonds?
Pawnbrokers should mail their completed bond forms, including the power of attorney, to the New Rochelle City Clerk at the following address:
City Hall
515 North Avenue
New Rochelle, NY 10801
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 and address of the entity/individual(s) buying the bond
- Surety company’s name and address
- Date the license is issued
- Date the bond is signed
- Notary acknowledgments
What Can New Rochelle Pawnbrokers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in New Rochelle must ensure that they:
- Do not engage in any acts of fraud or misrepresentation
- Do not breach contracts made with consumers
- Maintain all required transaction records
- Return all pledged goods that have been paid for
- Obtain proof of identification during each transaction
What Other Insurance Products Can Agents Offer Pawnbrokers in New Rochelle?
Most reputable pawnbrokers 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. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for New Rochelle Pawnbroker Customers?
New Rochelle unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.