Under North Carolina General Statutes (N.C.G.S. § 66-399), a pawnbroker assumes specific obligations to the state and to its customers. Pawnbrokers, Metal Dealers, and Scrap Dealers fall under the same regulatory framework, all of which require surety bond assurance. A North Carolina pawnbroker bond such financial assurance and is required before authority is given the pawn shop to operate. A pawnbroker in the state may; (i) make loans on pledges of tangible personal property, (ii) deal in bullion stocks, (iii) purchase merchandise for resale from dealers, traders, and wholesale suppliers and, (iv) use its assets in any lawful manner within the general scope and purpose of the prevailing statute.
The license candidate must procure a North Carolina pawnbroker surety bond in the amount of five thousand dollars ($5,000) issued by a fidelity or surety company authorized to conduct such business in the state. Pursuant to § 66-399, each person or business entity must file with the city or county issuing the license a bond payable to such city or county in the sum of five thousand dollars ($5,000), executed by the licensee and the surety's attorney-in-facxt. The surety bond must be approved by the city or county and guarantees the faithful performance of the obligations pertaining to the pawnbroker's business. The licensing authority may sue for forfeiture of the bond if there is a breach of the obligation. Any person who obtains a judgment against a pawnbroker for which execution on the judgment is returned unsatisfied may commence an action in his own name on the North Carolina pawnbroker bond (1989, c. 638, s. 2; 2012-46, ss. 2, 14.).
North Carolina 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 North Carolina pawnbroker surety bond need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.