Virginia Beach Precious Metal Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All precious metal dealers operating in Virginia Beach, 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 Virginia Beach: The Virginia Beach Police Department
Background
Virginia Code 54.1-4108 requires all precious metal dealers operating in the state to obtain a permit from their city or county’s local law enforcement agency. The Virginia legislature 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 $10,000 surety bond to be eligible for a permit.
What is the Purpose of the Virginia Beach Precious Metal Dealer Bond?
Virginia Beach 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 Virginia Beach Code of Ordinances 25.1-2. 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 Virginia Beach Precious Metal Dealer Surety Bond?
BondExchange makes obtaining a Virginia Beach 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.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensure 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 Virginia Beach Precious Metal Dealer Bond?
No, a credit check is not required for the Virginia Beach 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 Virginia Beach Precious Metal Dealer Bond Cost?
The Virginia Beach Precious Metal Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Virginia Beach Precious Metal Dealer Bond?
Virginia Beach requires all precious metal dealers to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Virginia Beach Code of Ordinances 25.1-2, a precious metal dealer is a person who purchases and sells secondhand precious metals such as gold, silver, jewelry, and other secondhand 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 Virginia Beach?
Precious metal dealers in Virginia Beach must navigate several steps to obtain a permit and must obtain a separate permit for each location they operate. Below are the general guidelines, but applicants should refer to the Virginia Beach Police Department’s website for details on the process.
Permit Term – All Virginia Beach Precious Metal Dealer Permits expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Obtain a Virginia Beach Business License
Precious metal dealers must first obtain a Virginia Beach Business License from the Commissioner of Revenue before applying for a precious metal dealer permit. Click here for additional information on the Virginia Beach Business License.
Step 2 – Purchase a Surety Bond
Precious metal dealers must purchase and maintain a $10,000 surety bond.
Step 3 – Complete an Application
Precious metal dealers should complete an application and deliver it in person to the Records Unit of the Virginia Beach Police Department at the following address:
2509 Princess Anne Road
Building 11
Virginia Beach, VA 23456
Dealers must complete the application in its entirety and ensure they submit the following items:
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- $570 application fee
- Surety bond or letter of credit
- State-issued picture identification
- Signed and notarized Criminal Record Information Request
- Copy of Virginia Beach Business License application
- Proof of weights and measurement inspection
- Copy of property deed or lease
Applications are accepted in person at the Records Unit on Monday through Friday between 8:00 am to 4:00 pm. All applicants are subject to a background check, and those convicted of a felony or crime of moral turpitude within the past seven years will be ineligible for a precious metal dealer permit. Contact the Virginia Beach Police Department by phone at (757) 385-4141 for additional assistance in the application process.
How Do Virginia Beach Precious Metal Dealers Renew Their Permit?
To renew their permit, precious metal dealers should submit a completed application to the Virginia Beach Police Department at the following address:
2509 Princess Anne Road
Building 11
Virginia Beach, VA 23456
Dealers must pay a $570 renewal fee and ensure they renew their surety bond to avoid termination of their permit. All Virginia Beach Precious Metal Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Precious Metal Dealers in Virginia Beach?
Virginia Beach does not require precious metal dealers to purchase any additional insurance. However, dealers must purchase and maintain a $10,000 surety bond.
How Do Virginia Beach Precious Metal Dealers File Their Bonds?
Precious metal dealers should mail or deliver their completed bond forms, including the power of attorney, to the Virginia Beach Police Department at the following address:
2509 Princess Anne Road
Building 11
Virginia Beach, VA 23456
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 and state of incorporation
- Bond amount
- Notary acknowledgments
What Can Virginia Beach Precious Metal Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, precious metal dealers in Virginia Beach 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 Virginia Beach?
Virginia Beach 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. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Virginia Beach Precious Metal Dealer Customers?
Virginia Beach unfortunately does not provide a public database of active precious metal dealers in the city. We suggest contacting the Virginia Beach Police Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.