The California Pawnbroker Surety Bond is required by the California Department of Justice in order to obtain a Pawnbroking License in the state.
What are the requirements to be a pawnbroker in California?
The California Financial Code Sections [21000 – 21307] defines a pawnbroker as a person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan. According to this code, all pawnbrokers must obtain a license from the Department of Justice prior to operating.
To obtain a Pawnbroker License, an application must be filed with the Dept. of Justice, along with a financial statement reflecting a net worth of $100,000, a (two-year, nonrevokable) $20,000 California Pawnbroker Surety Bond, and any applicable fees.
More information regarding the application requirements and processes can be found on the CA Dept. of Justice website as well as the California Financial Code.
What is the purpose of a California Pawnbroker Surety Bond?
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. Essentially, it is in place to protect the clients of the pawnbroker. If the clients’ property is not available for redemption due to the criminal negligence, criminal malfeasance, or other criminal conduct of the pawnbroker, the client can make a claim on their California Pawnbroker Surety Bond. If settled, the surety company (the company that issued the bond) will pay out the claim, but the principal (the pawnbroker in this case) must repay the surety company for any losses incurred from the claim.
Where can I get a California Pawnbroker Surety Bond?
In order to obtain this bond, simply fill out our free online application! One of our licensed agents will contact you within one business day with a quote for the price to obtain your bond (the “premium”). If you choose to move forward after receiving your quote, we will have you sign any necessary paperwork and remit the premium payment, at which time we will ship your bond to you via USPS Priority Mail (with overnight shipping options also available).
What happens when the bond expires?
As these bonds have a two year term, this bond must be renewed every other year. Approximately two months prior to expiration date of your bond, our company will send you an invoice to renew your bond for the next two year term. Once the renewal payment is collected, we will send you a Continuation Certificate which you will need to submit to the Department of Justice in order to keep your California Pawnbroker Surety Bond active with the state. Please note an active bond is required at all times in order to maintain a Pawnbroker License in California.
Why choose Surety1?
At Surety1, our agents work with over a dozen “A” rated surety markets to ensure we are finding you the lowest price for your bond. We’ve been issuing surety bonds since 2003 and our quality, reliable service has led us to an A+ rating by the Better Business Bureau! Located in California and licensed in all 50 states!