Ocean Township Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,000
- Who Needs it: All secondhand dealers operating in Ocean Township, New Jersey
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in Ocean Township: The Ocean Township Clerk’s Office
Background
Ocean Township Revised General Ordinance 289-3 requires all secondhand dealers operating in the town to obtain a license from the Township Clerk’s Office. The Ocean Township Council enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a $1,000 surety bond to be eligible for licensure.
What is the Purpose of the Ocean Township Secondhand Dealer Bond?
Ocean Township requires secondhand dealers to purchase a surety bond as part of the application process to obtain a business license. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Ocean Township Revised General Ordinances 289-7. Specifically, the bond protects the public if the dealer 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 secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain an Ocean Township Secondhand Dealer Surety Bond?
BondExchange makes obtaining an Ocean Township Secondhand Dealer surety bond easy. Simply login to your account and use our keyword search to find the “Secondhand Dealer” 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.
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Is a Credit Check Required for the Ocean Township Secondhand Dealer Bond?
No, a credit check is not required for the Ocean Township Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers in the town regardless of their credit history.
How Much Does the Ocean Township Secondhand Dealer Bond Cost?
The Ocean Township Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Ocean Township requires all secondhand dealers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Ocean Township Revised General Ordinances 289-2, a secondhand dealer is a person who purchases or collects personal property of any type from a person who is not a wholesaler, for the purpose of reselling or exchanging the property.
Ocean Township also requires any dealers who purchase or sell any precious metals and dealers who pawn any secondhand goods to purchase a $1,000 surety bond to be eligible for licensure. The following types of sales are exempt from the bonding requirement:
- Judicial sales by executors or administrators
- Private auctions or occasional sales of household goods
- Auctions of real estate
- Sales of coins or stamps by collectors
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 Secondhand Dealers Apply for a License in Ocean Township?
Secondhand dealers in Ocean Township must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Ocean Township Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $1,000 surety bond.
Step 2 – Contact the Township Clerk
To obtain a license, dealers must contact the Township Clerk. The clerk will walk them through the application process, provide them with all required forms, and answer any questions they may have. Secondhand dealers must pay a $100 application fee, and all applicants are subject to a background check.
How Do Ocean Township Secondhand Dealers Renew Their Licenses?
Secondhand dealers should contact the Township Clerk to obtain a renewal application before their license expires. Dealers are required to pay a $100 fee when renewing their license. All Ocean Township Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Secondhand Dealers in Ocean Township?
Ocean Township does not require secondhand dealers to purchase any form of liability insurance. Dealers must purchase and maintain a $1,000 surety bond.
How Do Ocean Township Secondhand Dealers File Their Bonds?
Secondhand dealers should mail or deliver their completed bond forms, including the power of attorney, to the Township Clerk’s Office at the following address:
399 Monmouth Road
Oakhurst, New Jersey 07755
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 of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Ocean Township Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in Ocean Township must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Maintain all required transaction records
What Other Insurance Products Can Agents Offer Secondhand Dealers in Ocean Township?
Ocean Township does not require secondhand dealers 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 Ocean Township Secondhand Dealer Customers?
Ocean Township unfortunately does not provide a public database of active secondhand dealers in the town. We suggest contacting the Township Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.