The California Pawnbroker Surety Bond is required by the California Department of Justice.
Anyone who is applying for a license or is already a licensed pawnbroker in the State of California must have the California Pawnbroker Surety Bond on file with the Department of Justice’s Attorney General.
The amount of the California Pawnbroker Surety Bond is a required $20,000. This bond has a two year term and it must be renewed timely in order for the pawnbroker to continue operating. This bond is in place to help ensure that the Pawnbroker will comply with and be subject to the provisions of the Business and Professions Code and Financial Code relating to pawnbrokers.
According to the Department of Justice, a pawnbroker is “any person engaged in the business of receiving goods in pledge as security for a loan.”
Pawnbrokers differ from a secondhand dealers. A secondhand dealer is “any person, whose business includes buying, selling, taking in trade, taking in pawn, taken on consignment, accepting for auction or auctioning secondhand tangible personal property.” A pawnbroker is also a secondhand dealer, but a secondhand dealer is not a pawnbroker.
Both pawnbrokers and secondhand dealers require a license, but they are different licenses because they serve two different purposes. Because of their differences, secondhand dealers are not required to obtain this bond. Pawnbrokers, though, must have this bond.