Pawn shop operations are generally small and local however they are considered financial institutions and are often regulated as such. A New Mexico pawnbroker bond is required by an applicant's local government authority for licensing. Per the state statute a regulated party means a person engaged in the business of making pawn transactions. A "pawnshop" means the location or premises at which a pawnbroker regularly conducts his business.
The New Mexico pawn shop bond serves as a form of insurance for parties that might be prejudiced by an operator's breach of his or her pledge/loan agreement. Pursuant to Section 56-12-6, "No person shall engage in business as a pawnbroker without having executed and delivered a bond to his local government in the sum of five thousand dollars ($5,000). The bond shall be in a form approved by the local government and shall be conditioned upon the conduct of the pawnbroker's business according to the provisions of the Pawnbrokers Act. The bond shall be for the benefit of each and every person damaged by a breach of any condition set forth in the bond."
The State of New Mexico is now signatory to the National Mortgage Licensing System's license application protocols however pawnbrokers are NOT yet required to file and e-bond. Processing and application materials, including the pawnbroker surety bond must be delivered to the local law enforcement and government licensing body (or clerk of the same).
New Mexico 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 New Mexico pawnbroker surety bond need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.