Oklahoma City Precious Metal Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $10,000
- Who Needs it: All precious metal dealers operating in Oklahoma City, Oklahoma
- Purpose: To protect the public from financial harm if the dealer violates the terms of their license
- Who Regulates Precious Metal Dealers in Oklahoma City: The Oklahoma City Business Licensing Office
Background
Oklahoma City Code of Ordinances 54-221 requires all precious metal dealers operating in the city to obtain a license from the Business Licensing Office. The Oklahoma City Council enacted the licensing requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, precious metal dealers must purchase and maintain a $10,000 surety bond to be eligible for a license.
What is the Purpose of the Oklahoma City Precious Metal Dealer Bond?
Oklahoma City requires precious metal dealers to purchase a surety bond as part of the application process to obtain a precious metal dealer license. The bond protects the public from financial harm if the precious metal dealer fails to comply with the regulations set forth in Oklahoma City Code of Ordinances 54-226. Specifically, the bond protects the public if the precious metal dealer engages in acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the precious metal dealer violates the terms of their license.
How Can an Insurance Agent Obtain an Oklahoma City Precious Metal Dealer Surety Bond?
BondExchange makes obtaining an Oklahoma City Precious Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Precious Metal 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 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 Oklahoma City Precious Metal Dealer Bond?
No, a credit check is not required for the Oklahoma City Precious Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all precious metal dealers operating in the city, regardless of their credit history.
How Much Does the Oklahoma City Precious Metal Dealer Bond Cost?
The Oklahoma City Precious Metal Dealer bond costs just $100 per year.
Who is Required to Purchase the Bond?
Oklahoma City requires precious metal dealers to purchase a surety bond as a prerequisite to obtaining a license. To paraphrase Oklahoma City Code of Ordinances 54-191, a precious metal dealer is a person who purchases or sells used precious metals or gems such as gold, silver, platinum, or palladium from the general public.
Exemptions to this definition include:
- Licensed pawnbrokers
- Licensed financial institutions and banks
- Retail jewelers that purchase precious metals directly from manufacturers
How Do Precious Metal Dealers Apply for a License in Oklahoma City?
Precious metal dealers in Oklahoma City must navigate several steps to obtain a license. Below are the general guidelines, but applicants should contact the Business Licensing Office for details on the process.
License Period – All Oklahoma City Precious Metal Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Obtain a State Precious Metal Dealer License
Precious metal dealers must first obtain a state precious metal dealer license from the Oklahoma Department of Consumer Credit before applying for a local precious metal dealer license in Oklahoma City. Click here for additional information on how to obtain the Oklahoma Precious Metal Dealer License.
Step 2 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $10,000 surety bond.
Step 3 – Complete the Application
Precious metal dealers should submit a completed application to the Business Licensing Office online here. Precious metal dealers must complete the application in its entirety and ensure they submit the following items:
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- $58 annual fee
- Surety bond
- OK Sales Tax Permit
- Copy of the applicant’s fingerprints
- Valid driver’s license or state-issued identification
- Immigration affidavit, if applicable
All applicants will be subject to a background check by the Oklahoma State Bureau of Investigation. Contact the Business Licensing Office for additional assistance in the application process.
How Do Oklahoma City Precious Metal Dealers Renew Their Licenses?
To renew their license, precious metal dealers should submit a completed renewal application online here. Precious metal dealers must pay a $58 annual fee and ensure that they renew their surety bond to avoid termination of their license. All Oklahoma City Precious Metal Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Precious Metal Dealers in Oklahoma City?
Oklahoma City does not require precious metal dealers to purchase any additional insurance. Precious metal dealers must purchase and maintain a $10,000 surety bond.
How Do Oklahoma City Precious Metal Dealers File Their Bonds?
Precious metal dealers should submit their completed bond forms, including the power of attorney, to the Business Licensing Office at the following address:
420 West Main, 8th Floor
Oklahoma City, OK 73102
The bond requires signatures, including witness 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
- License term period
- Date the bond is signed
What Can Oklahoma City Precious Metal Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Oklahoma City must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Do not purchase or sell any stolen goods
- Maintain all required records
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Oklahoma City?
Oklahoma does not require precious metal dealers to purchase any 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. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Oklahoma City Precious Metal Dealer Customers?
Oklahoma City unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the Business Licensing Office to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.