Pawnbrokers are generally small and local however they are considered financial institutions and are often regulated as such. A Louisiana pawnbroker bond is required by the Office of Financial Institutions for licensing in lieu of meeting certain specific net worth requirements. Per the Office, all pawnbrokers which means any person who lends money on a deposit or pledge or who takes other things into possession as security for money advanced or who makes a public display at his place of business of the sign generally used by pawnbrokers to denote his business, (three gilt or yellow balls) or who publicly exhibits a sign that money is to be loaned on personal property on deposit."
The Louisiana pawnbroker bond serves as evidence of "financial solvency". The statute requires $50,000 in minimum net assets. If an operator owns one pawnshop there is only one $50,000 requirement. If the operator has multiple stand-alone shops then the threshold remains the same however if the pawnshops are different juridical entities even if commonly owned, then the operator must post a Louisiana pawn shop bond for each separate entity. The Office can require a CPA audited financial statement from an applicant which makes the surety bond requirement the less expensive option. The Office of Financial Institutions provides some helpful links for pawnbrokers.
Pawnbroker Licensing Contacts
Frequently Asked Questions for Pawnbrokers
LRS Title 37: Part 1. Pawnbrokers (regulatory statute)
The State of Louisiana is now signatory to the National Mortgage Licensing System's (NMLS) license application protocols. A Louisiana pawnbroker surety bond must be "e-filed" through the NMLS system.
Louisiana 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 goods operators 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 Louisiana pawnbroker surety bond need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.