Winston-Salem Pawnbroker Bond: A Comprehensive Guide
June 29, 2021
This guide provides information for insurance agents to help their customers obtain a Winston-Salem Pawnbroker Bond
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $5,000
- Who Needs it: All pawnbrokers operating in Winston-Salem, North Carolina
- Purpose: To ensure the public will receive compensation for any damages should the pawnbroker violate licensing law
- Who Requires the Bond: The City of Winston-Salem, North Carolina
Winston-Salem Code of Ordinances 34-19 requires all pawnbrokers operating in the city to obtain a license. The Winston-Salem City Council 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. Additionally, North Carolina Statute 66-399 mandates that all pawnbrokers operating in the state file a bond with their local municipal authority before conducting business.
What is the Purpose of the Winston-Salem Pawnbroker Bond?
Winston-Salem 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 Winston Code of Ordinances 34-19 and North Carolina Statute 66-399. Specifically, the bond protects the public in the event the broker commits 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 Winston-Salem Pawnbroker Surety Bond?
BondExchange makes obtaining a Winston-Salem 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? Enroll 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 Winston-Salem Pawnbroker Bond?
No, a credit check is not required for the Winston-Salem Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the city, regardless of their credit history.
How Much Does the Winston-Salem Pawnbroker Bond Cost?
The Winston-Salem Pawnbroker bond costs just $100 per year.
Who is Required to Purchase the Winston-Salem Pawnbroker Bond?
Winston Salem requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase Winston-Salem Code of Ordinances 34-19, 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.
How do Pawnbrokers Apply for a License in Winston-Salem?
Pawnbrokers in Winston-Salem must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Winston-Salem Pawnbroker Licenses expire on June 30 of each year and must be renewed before the expiration date
Step 1 – Register the Business Name
Pawnbrokers must register their business name with the Forsyth County Register of Deeds office.
Step 2 – Purchase a Surety Bond
Pawnbrokers must purchase and maintain a $5,000 surety bond
Step 3 – Contact the Revenue Department
To apply for a Pawnbroker License in Winston-Salem, applicants should contact the city’s Revenue Department at (336) 747-6958. The department will walk the broker through the application process, provide them with all required forms, and answer any questions they may have.
Pawnbrokers are required to submit the following items with their license application:
- 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
How do Pawnbrokers in Winston-Salem Renew Their Licenses?
Prior to the license expiration date, the city will contact the broker with instructions on how to complete the renewal process. All Winston-Salem Pawnbroker Licenses expire on June 30 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for the Winston-Salem Pawnbroker License?
Winston-Salem does not require pawnbrokers to purchase any form of liability insurance as a prerequisite to obtaining a business license. Pawnbrokers must purchase and maintain a $5,000 surety bond.
How Do Winston-Salem Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the Revenue Department at the following address:
Bryce A. Stuart Municipal Building
100 E First Street
Winston-Salem, NC 27107
The surety bond requires 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:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name and address
- Bond amount
- Date the bond goes into effect
What Can Winston-Salem Pawnbrokers do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Winston-Salem 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 Winston-Salem?
Winston-Salem does not require pawnbrokers to purchase liability insurance as a prerequisite to obtaining a business license. 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 Winston-Salem Pawnbroker Customers?
Winston-Salem conveniently provides a public database of active businesses in the city. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.