Staunton Precious Metal Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $25,000
- Who Needs it: All precious metal dealers operating in Staunton, Virginia
- Purpose: To protect the public from financial harm if the precious metal dealer violates the terms of their permit
- Who Regulates Precious Metal Dealers in Staunton: The Staunton Police Department
Background
Staunton City Code 5.20.130 requires all precious metal dealers operating in the city to obtain a permit from the Staunton Police Department. The Staunton City Council enacted the permit requirement to ensure that precious metal dealers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, precious metal dealers must purchase and maintain a $25,000 surety bond to be eligible for a permit.
What is the Purpose of the Prince William County Precious Metal Dealer Bond?
Staunton requires precious metal dealers to purchase a surety bond as part of the application process to obtain a permit. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Staunton City Code 5.20.060. 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 precious metal dealer violates the terms of their permit.
How Can an Insurance Agent Obtain a Staunton Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Staunton 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 Staunton Precious Metal Dealer Bond?
No, a credit check is not required for the Staunton 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 Staunton Precious Metal Dealer Bond Cost?
The Staunton Precious Metal Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Staunton Precious Metal Dealer Bond?
Staunton requires all precious metal dealers to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Staunton City Code 5.20.010, a precious metal dealer is a person who purchases and sells secondhand items containing precious metals such as gold, silver, jewelry, and other items containing precious metals or gems from the general public.
Exemptions to this definition include:
- Purchases of precious metals directly from manufacturers
- Qualified fiduciaries distributing an estate’s assets
- Banks, trust companies, or bank holding companies
- Antique or gem exhibitions sponsored by nonprofit organizations
- Repairing, restoring, or designing jewelry
- Purchases of nonprecious scrap metals
- Purchases or sales of coins
Virginia Code 54.1-4106 allows dealers to obtain an irrevocable letter of credit in lieu of a surety bond. Surety bonds are generally considered the better option for businesses as they free up working capital. For more information on whether your customer should purchase a bond or deposit cash, check out our Surety Bonds vs. Letters of Credit article here.
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 Precious Metal Dealers Apply for a Permit in Staunton?
Precious metal dealers in Staunton must navigate several steps to obtain a permit. Below are the general guidelines, but applicants should refer to the regulatory code for details on the process.
Permit Term – All Staunton Precious Metal Dealer Permits expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Contact the Police Department
To obtain a permit application, dealers must contact the Staunton Police Department by phone at (540) 332-3845. The department will walk them through the application process, provide them with all required forms, and answer any questions they may have. Dealers are required to be fingerprinted by the department, complete a background check, and have their weights and measurements inspected. Applicants convicted of a felony or crime of moral turpitude within the past seven years are ineligible for a permit, and all applicants must pay a $200 permit fee.
Step 2 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $25,000 surety bond.
How Do Staunton Precious Metal Dealers Renew Their Permit?
Precious metal dealers should contact the Staunton Police Department to renew their permit before their existing one expires. Dealers must pay a $200 renewal fee and ensure they renew their surety bond to avoid termination of their permit. All Staunton Precious Metal Dealer Permits 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 Staunton?
Staunton does not require precious metal dealers to purchase any additional insurance. However, dealers must purchase and maintain a $25,000 surety bond.
How Do Staunton Precious Metal Dealers File Their Bonds?
Precious metal dealers should mail or deliver their completed bond forms, including the power of attorney, to the Staunton Police Department at the following address:
City Hall
116 W Beverly Street
Staunton, VA 24401
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 permit type applied for
- Bond amount
- Date the bond goes into effect
- Signing date of the bond
What Can Staunton Precious Metal Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Staunton 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 transaction records
- Obtain identification before each transaction
What Other Insurance Products Can Agents Offer Precious Metal Dealers in Staunton?
Staunton does not require precious metal 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 liability insurance, but our agents often utilize brokers for this specific line of business. Agents can access a list of brokers online here.
How Can Insurance Agents Prospect for Staunton Precious Metal Dealer Customers?
Staunton unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the Staunton Police Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.