Learn the importance of this bond and how to easily apply for one!
What is a California Pawnbroker Bond?
No pawnbroker can engage in the business of receiving goods, including motor vehicles, in pledge as security for a loan without obtaining this bond.
This bond is a license (new and renewal) requirement that must be submitted to the California Department of Justice's (DOJ) Secondhand Dealer and Pawnbroker Unit.
Compliance to the relevant provisions of the California Financial Code is one of the reasons why this two-year, non-revocable bond is required. As part of the Code, the pawnbroker must make available for redemption a pledged property so long as the pledgor has complied with the conditions precedent to redemption under the terms of any loan contract.
The pledgor can file a claim against this bond if the pawnbroker fails to perform the said act or disobeys any of the other relevant laws that covers his or her pawnbroker license.
This bond requirement is in pursuance of Section 21303 of the California Financial Code.
How much does a California Pawnbroker Bond cost?
The bond premium will typically range from 1% to 5% of the bond amount. A pawnbroker's credit score will determine the amount that he or she needs to pay as bond premium.
How can I get a California Pawnbroker Bond?
How does a California Pawnbroker Bond work?
This bond is a legal security provided by the Principal (pawnbroker) for the benefit of the Obligee.
The Principal and the Surety will partner in assuring the performance of the former to the California Department of Justice's (DOJ) Secondhand Dealer and Pawnbroker Unit. The Principal is primarily responsible for the fulfillment of the obligations required by the Obligee. If the Principal fails to do any of the bonded obligations required by the relevant laws, rules, and regulations, the Obligee can file a bond claim.
Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Do you need this bond ASAP? APPLY HERE NOW!