Pawnbrokers are often small, local enterprises however in many jurisdictions they are considered financial institutions and regulated as such. A Connecticut pawnbroker bond is required by state law for licensing. Per Public Act 11-100, a pawnbroker is "a person who is engaged in the business of loaning money on the deposit or pledge of wearing apparel, jewelry, ornaments, household goods or other personal property or purchasing such property on condition of selling the same back again at a stipulated price." The statutory description does NOT include secondhand, precious metals nor gem dealers as they are separate, regulated practices.
No person, corporation, limited liability company or partnership may engage in the business of a pawnbroker unless such person is licensed in accordance with section 21-40. The Connecticut bond for a pawnbroker's license serves as a form of financial assurance for parties that might be prejudiced by an operator's breach of his or her pledge/loan agreements and to ensure compliance with the licensing statute. Pursuant to Section 3(b), at the time of receiving a license the applicant must file, with the licensing authority of the city or town where application is made, a pawnbroker surety bond with competent surety in the amount of two thousand dollars ($2,000). Failure to seek proper licensing before commencing operations is punishable as a Class D felony.
The State of Connecticut is now signatory to the National Mortgage Licensing System's license application protocols however pawnbrokers are NOT yet required to file an e-bond. Processing and application materials, including the pawnbroker surety bond must be delivered to the local mayor or selectman in the licensing jurisdition.
Connecticut surety bond leader, Surety One, Inc. is a specialist in the bonding needs of the pawn industry. We offer both surety and fidelity bonds in support of pawn and secondhand dealers, precious metal and gem stone brokers in all fifty states, Puerto Rico and the U.S. Virgin Islands. Contact us at (800) 373-2804, Underwriting@SuretyOne.com or click here for a live chat about your Connecticut pawnbroker surety bond need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.