No person may engage in pawnbroking unless he or she has submitted an Indiana pawnbroker bond and received authorization from the state to do so.  “Pawnbroker” is defined by statute as any person, partnership, association, limited liability company, or corporation lending money on the deposit or pledge of personal property, or who deals in the purchase of personal property on the condition of selling the property back again at a stipulated price, other than choses in action, securities, or printed evidence of indebtedness (IC 28-7-5-2).  The Indiana pawnbroker surety bond must must be written in the amount of $50,000 and issued by a surety company qualified to transact business in the state.  Due to changes in the pawnbroking laws, as of 2010 all pawnbrokers are required to provide this $50,000 bond for EACH location with a maximum of $200,000 in open bonds.  Additionally the law requires certain levels of net worth and operating capital which must be reviewed and reported on by a certified public accountant.

The Indiana pawnbroker bond obligation guarantees that the pawnbroker will faithfully conform to and abide by the provisions of all applicable laws, including the Indiana Pawnbroking Law, as well as any rules and regulations lawfully adopted by the Department of Financial Institutions, and will pay any and all amounts which become due or owed to any party.  The bond is not cumulative, being limited to only the penal amount of the bond on its face and there is no forfeiture provision.  The instrument is continuous “until released by the DFI”, however the wording of the Indiana pawnbroker surety bond states that the surety has the right to terminate or reduce its liability by giving the Principal and the DFI written notice of the same via certified mail to the DFI at least thirty (30) days prior to the effective date of a termination.  The form also specifically authorizes reinstatement after cancellation by surety mailing its consent.  The obligation does have a “tail”, the liability of the surety expiring two (2) years after the date of the surrender, revocation, or expiration of the pawnbroker’s license, whichever comes first.

Indiana surety leader, Surety One, Inc. is THE source for pawnbroker surety bonds.  We offer terms to ALL pawnbroker applicants regardless of credit condition. Keep us in mind also for your fidelity bond needs.  They are an excellent hedge against losses due to employee dishonesty.  Visit us at, call (800) 373-2804, or email for an Indiana pawnbroker bond application or for information about any bond product.