California Pawn Broker Surety Bonds

The State of California defines a pawnbroker as any person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan. Per Section 21303 of the California Financial Code, individuals conducting business as a pawnbroker are required to file a $20,000 surety bond with the California Department of Justice (CDOJ) before they can be issued a license. This surety bond guarantees that the principal (pawn broker) complies with all provisions of California law governing the operation of a pawnbrokers business, and provides protection when pawned property is not available for redemption, due to criminal negligence, criminal malfeasance, or other criminal conduct of the pawnbroker. If a harmed party files a valid claim against the bond, the surety will pay damages up to the penal sum of the bond to resolve the claim. All damages paid out by the surety must be reimbursed by the principal, including any reasonable attorney fees.

Pacific Surety is proud to offer industry low rates and quick turnaround time for quoting of California Pawnbroker Surety Bonds. Feel free to complete our simple application to obtain an approval within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.

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Pawn Broker Surety Bonds – California