In the state of Michigan, the regulating and licensing of pawnbrokers is delegated by state law to the local municipalities throughout the state. Any person who wishes to operate as a pawnbroker must obtain a license from the city or county that they will be operating in. Per section 446.202 of the Pawnbrokers Act 273 of 1917, a $3,000 surety bond must be filed with the local licensing authority before a license can be issued. This surety bond guarantees that the principal (pawnbroker) complies with all Michigan laws governing the operation of a pawnbroker business, and provides protection against unethical and unlawful business practices by the principal. 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 Michigan 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 – Michigan
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