North Carolina Pawnbroker Bond

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North Carolina Pawnbroker Bond: A Comprehensive Guide

This guide provides information for insurance agents to help their customers obtain a North Carolina 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 North Carolina
  • Purpose: To ensure the public will receive compensation for any damages should the pawnbroker violate licensing law
  • Who Regulates Pawnbrokers in North Carolina: The city/county where the pawnbroker is conducting business
North Carolina Pawnbroker Bond Form
North Carolina Pawnbroker Bond Form


North Carolina Statute 66-389 requires all pawnbrokers operating in the state to obtain a license with their city or county before conducting business. The North Carolina legislature 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.

What is the Purpose of the North Carolina Pawnbroker Bond?

North Carolina 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 66-399. Specifically, the bond protects the public in the event the broker 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 pawnbroker breaks licensing law.

How Can an Insurance Agent Obtain a North Caroline Pawnbroker Surety Bond?

BondExchange makes obtaining a North Carolina Pawnbroker Bond easy. Simply login 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 (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 North Carolina Pawnbroker Bond?

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

How Much Does the North Carolina Pawnbroker Bond Cost?

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

Who is Required to Purchase the North Carolina Pawnbroker Bond?

North Carolina 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.

North Carolina 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 North Carolina Pawnbrokers Obtain a License?

North Carolina pawnbrokers that are operating within the legal limits of a city must apply for licensure through the city. Brokers operating outside the limits of any city must obtain a bond from the county their store is located in.

To obtain a license, pawnbrokers should contact their local municipal authority who will provide them with the required application. All North Carolina Pawnbroker License applications must contain, at a minimum, the following items:

  • The name and address of the applicant and those of their business
  • 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 as well as a certificate from the county police department verifying this information

All persons that have been convicted of a felony within the past ten years are ineligible for licensure.

What are the Insurance Requirements for North Carolina Pawnbrokers?

North Carolina does not require pawnbrokers to purchase any form of liability insurance. However, brokers may need to obtain insurance as a prerequisite to obtaining a local business license Pawnbrokers must purchase and maintain a $5,000 surety bond.

How Do North Carolina Pawnbrokers File Their Bonds?

Pawnbrokers should submit their completed bond forms, including the power of attorney, to their local municipal authority.

The surety bond requires signatures, including witness 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:

  • County the broker is operating in
  • Legal name 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 North Carolina Pawnbrokers do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, pawnbrokers in North Carolina 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 North Carolina?

North Carolina does not require pawnbrokers 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 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 North Carolina Pawnbroker Customers?

North Carolina unfortunately does not provide a public database of active pawnbrokers in the state. We suggest contacting individual city and county governments for a list of pawnbrokers in their jurisdictions. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

North Carolina Pawnbroker Bond