Newark Keeper of Junk Shop Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $500
- Who Needs it: All keepers of junk shops operating in Newark, New Jersey
- Purpose: To protect the public from financial harm if the keeper of the junk shop violates the terms of their license
- Who Regulates Junk Shops in Newark: The City of Newark Department of Finance
Background
Newark Code of Ordinance 8:8-1 requires all keepers of junk shops operating in the city to obtain a license from the Department of Finance. The Newark City Council enacted the licensing requirement to ensure that junk shops engage in ethical business practices. To provide financial security for the enforcement of the licensing law, keepers of junk shops must purchase and maintain a $500 surety bond to be eligible for licensure.
What is the Purpose of the Newark Keeper of Junk Shop Bond?
Newark requires all keepers of junk shops to purchase a surety bond as part of the application process to obtain a junk dealer license. The bond protects the public from financial harm if the junk shop fails to comply with the regulations set forth in Newark Code of Ordinance 8:8-6. Specifically, the bond protects the public if the junk shop engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the junk shop violates the terms of its license.
How Can an Insurance Agent Obtain a Newark Keeper of Junk Shop Surety Bond?
BondExchange makes obtaining a Newark Keeper of Junk Shop bond easy. Simply log in to your account and use our keyword search to find the “Newark” 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.
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Is a Credit Check Required for the Newark Keeper of Junk Shop Bond?
No, a credit check is not required for the Newark Keeper of Junk Shop bond. Because the bond is considered relatively low risk, the same low rate is offered to all junk shops in the city regardless of their credit history.
How Much Does the Newark Keeper of Junk Shop Bond Cost?
The Newark Keeper of Junk Shop bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Newark requires keepers of junk shops to purchase a surety bond as a prerequisite to obtaining a junk dealer license. To paraphrase Newark Code of Ordinance 8:8-2, a junk shop is a business that purchases, sells, or stores junk salvaged materials such as old metals, rubber, paper, or other salvaged materials.
Metal processing facilities are also subject to this bond requirement. Newark defines a metal processing facility as any business that purchases, sells, or stores scrap iron, sheet, or other metals.
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 Keepers of Junk Shops Apply for a License in Newark?
Keepers of junk shops in Newark must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the City of Newark’s website for details on the process.
License Period – All Newark Junk Shop Licenses expire on April 30 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Keepers of junk shops must purchase and maintain a $500 surety bond.
Step 2 – Complete the Application
Keepers of junk shops are required to submit an application to the Department of Finance online here. Applicants must complete the form in its entirety and submit the following items with it:
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- $750 licensing fee
- Trade Waste Permit
- Fire Certificate
- Police Warrant Record Check
- NJ Business Registration Certificate
- Valid driver’s license or state identification card
How Do Keepers of Junk Shops Renew Their Licenses in Newark?
Keepers of junk shops should renew their licenses online here. All Newark Junk Shop Licenses expire on April 30 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for the Newark Junk Shops?
Newark does not require keepers of junk shops to purchase any form of liability insurance. Keepers of junk shops must also purchase and maintain a $500 surety bond.
How Do Newark Keepers of Junk Shops File Their Bonds?
Keepers of junk shops should file their completed bond forms, including the power of attorney, to the Department of Finance at the following address:
Division of Tax Abatement and Special Taxes
920 Broad Street Room B-17
Newark, NJ 07102
The bond requires signatures from both the surety company that issues the bond, the applicant, and a commissioned notary public. 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
- Date the bond is signed
- Junk shop business address
What Can Newark Keepers of Junk Shops do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, keepers of junk shops in Newark must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
What Other Insurance Products Can Agents Offer Keepers of Junk Shops in Newark?
Newark does not require keepers of junk shops to purchase liability insurance. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. Agents can access a list of brokers here.
How Can Insurance Agents Prospect for Newark Keepers of Junk Shops Customers?
Newark unfortunately does not provide a public database of active junk dealers in the city. We suggest contacting the Department of Finance to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.