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North Carolina Pawnbroker Bond
The State of North Carolina requires those who wish to establish themselves as a pawnbroker to first be licensed through their local city or county government office. To hold a pawnbroker license, applicants must acquire a $5,000 Pawnbroker Bond.
Jet Insurance Company provides this bond to act as legal and financial assurance for initial and renewal pawnbroker license applicants. The Pawnbroker Bond guarantees that approved pawnbrokers will honor the terms of their license, and also provides financial protection to the public if the pawnbroker violates such terms. Without that guarantee, you cannot be approved for a pawnbroker license.
The North Carolina Pawnbroker Bonds are available to you in just moments online and may be purchased with a low monthly payment offer that is exclusively from Jet.
What Is the Cost of a Pawnbroker Bond?
At Jet, the $5,000 North Carolina Pawnbroker Bond costs $100 annually or $10 monthly! There are multi-year options available as well. With Jet, you have the ability to apply for and purchase your bond instantly online - no credit check required!
| Bond Term | Cost |
|---|---|
| Monthly | $10 |
| 1 Year | $100 |
| 2 Years | $175 |
| 3 Years | $250 |
Our monthly option requires no down payment and will not accumulate interest regardless of your credit.
North Carolina Pawnbroker Bond Types
The State of North Carolina has two bond categories for pawnbrokers, either State or Local. Most Pawnbroker Bonds are governed on a state level, but there are two cities that oversee bonds locally: the City of Winston-Salem and the City of Raleigh. If you operate in either Raleigh or Winston-Salem, the bond form is different but the bond limit is $5,000 regardless of your location. The Jet team supplies all of these surety bonds throughout the State of North Carolina.
| Municipality | Type of Pawnbroker Bond Form |
|---|---|
| City of Asheville | NC State Pawnbroker Bond |
| City of Greensboro | NC State Pawnbroker Bond |
| City of Hendersonville | NC State Pawnbroker Bond |
| City of Highpoint | NC State Pawnbroker Bond |
| City of Kannapolis | NC State Pawnbroker Bond |
| Davidson County | NC State Pawnbroker Bond |
| Mecklenburg County | NC State Pawnbroker Bond |
| Town of Franklin | NC State Pawnbroker Bond |
| Town of Smithfield | NC State Pawnbroker Bond |
| City of Winston-Salem | City of Winston-Salem Pawnbroker Bond |
| City of Raleigh | City of Raleigh Pawnbroker Bond |
If you do not see your local city or county listed, call your City Clerk’s office for further bond information.
What Is the Purpose of Pawnbroker Bonds?
North Carolina pawnbrokers who take part in the making of pawn loans such as the acquisition and disposition of valuable property, purchase merchandise from dealers with the purpose of reselling it, or deal in precious metals have been found to greatly impact the general economy of the state in addition to the welfare of its citizens. Therefore, the State of North Carolina requires all pawnbrokers to be properly licensed and bonded before and throughout operation to ensure that pawn shops are in compliance with license laws and the North Carolina public will be financially protected.
How Are North Carolina Pawnbroker Bonds Filed?
The Jet team can take care of filing the bond for you! Simply let us know which North Carolina city or county your pawnbroker operation is located and we will send the original signed and sealed bond to the appropriate local government office for filing. A copy will then be sent to you for your personal records. If you would prefer to send in the bond yourself with your initial or renewal license application, Jet’s online application allows you to select that option.
According to North Carolina General Statute 66-399, an original signed and sealed pawnbroker surety bond must be filed at the appropriate local government office in which the pawnbroker operation is located; the pawnbroker license application is also required to be submitted to the same local city or county government office. The license application will need to be requested from such an office and submitted before the bond can be properly filed. The bond must remain on file throughout the entirety of the pawnbroker’s operation in order to keep their license in good standing.
If you are unsure which city or county government office to send your pawnbroker paperwork to, please contact the North Carolina’s Department of Administration for further information.
Applicants with a pawnbroker operation in the City of Winston-Salem should mail their license application and original bond form to the address below:
City of Winston-Salem City
Clerk’s Office
P.O. Box 2511
Winston-Salem, NC 27102
Applicants with a pawnbroker operation in the City of Raleigh should mail their license application and original bond form to the address below:
City of Raleigh
Clerk’s Office
P.O. Box 590
Raleigh, NC 27602-0590
How Does the Application Process Work With Jet?
Jet’s application process takes only a few minutes to complete and can be done from the comfort of your home. Our application for the North Carolina Pawnbroker Bonds will ask for some basic information such as the business name and local city or county of the pawn shop. Once you select the monthly, annual, or multi-year option and complete payment the Jet team will file the bond for you or send the original bond form to the address of your choice!
Can North Carolina Pawnbroker Bonds Be Cancelled?
With Jet, you can cancel the Pawnbroker Bond at any time. The bond is continuous so cancellation will need to be requested to the Obligee (city or county) by the surety company (Jet) in order to do so. Once Jet sends a written cancellation notice to the city or county government agency in which the bond was originally filed, liability of the bond will be released within 30 days of notification.
If the monthly payment option was chosen, Jet must charge your card for the 30-day liability period as the bond technically remains active during that time. If an annual or multi-year payment option was chosen, Jet will review your bond to see if there is any unused premium available for reimbursement.
Can a Pawnbroker Bond Be Renewed in North Carolina?
With Jet’s monthly payment option, there is no need for a renewal! Pawnbroker Bond payments will continue to come out of your preferred account until cancellation of the license bond is requested.
For pawnbrokers who pay in full upon application, the Jet team will send you a renewal invoice prior to the bond term’s expiration date. No additional paperwork is required, payment is all that is needed. Jet will take care of the rest!
How Do Claims on a North Carolina Pawnbroker Bond Arise?
Pawnbrokers are expected to follow all licensing laws in accordance with North Carolina General Statutes Chapter 66, Article 45 Part 385-399, otherwise known as the Pawnbrokers and Cash Converters Act. The statutes are extensive and should be reviewed thoroughly before any pawnbroker operation commences. Failure to abide by these statutes may result in a Class 2 misdemeanor charge, revocation of the pawnbroker’s license, and additional action that could lead to a bond claim.
A key prohibited act that could facilitate a bond claim is as follows: Sell the personal property before the expiration of the contractual period; disregard or choose to not honor the original agreed upon sell back price and interest rate, and/or charge more interest than is allowed pursuant to the above statutes.
A violation of the statutes will make the pawn contract null and void, therefore the licensee shall have no right to collect, receive, or retain any interest or fee whatsoever to such pawn.
Before a financially harmed buyer pursues a bond claim, they can choose to file a complaint with North Carolina’s Department of Public Safety or the local law-enforcement agency where the pawn shop is located. Ultimately, neither agency can commence action on behalf of the buyer for the recovery of lost funds and may advise the buyer to take civil action while inflicting their own separate penalties onto the pawnbroker. If civil action is taken and the court proceeds to validate the claim, the bond may be used to cover financial damages brought on by the pawnbroker to the buyer. If possible, it is in the best interest of the pawnbroker to resolve the complaint with the buyer before civil action and a bond claim is pursued.
What Happens If a Pawnbroker Gets a Bond Claim?
Immediately notify Jet as soon as you receive the court-ordered bond claim payout notification. The Jet team will brief you on how our claim process works and then will proceed with a thorough review of the claim details and court’s investigation.
For legitimate claims, Jet will make payment up to the $5,000 bond limit. It is important to note that all North Carolina Pawnbroker Bonds act as an extension of credit and the pawnbroker is ultimately responsible for their actions, therefore they are obligated to reimburse Jet for the paid out claim. Failure to repay a claim will lead to future difficulties obtaining surety bonds, including the license required Pawnbroker Bond.
