BONDS
Coverage Amount:
$20,000
Cost:
$200.00
Period:
1–3 years
The California Pawnbroker Bond is a $20,000 surety bond required as a condition of licensure for pawnbrokers. The bond supports compliance with state pawnbroker laws and provides protection for the public when violations occur.
Licensing is administered locally. Applicants file the bond with the issuing authority in their jurisdiction and must keep the bond active for the license to remain valid.
Issuing/obligee authority: Local law enforcement (police chief or county sheriff)
Amount: $20,000
Purpose: Ensures compliance with California Financial Code requirements
Filing: Bond filed with the local issuing authority
Maintain continuous coverage to keep the license active
What is a surety bond and how does it work?
A surety bond is a three-party agreement among the principal (you), the obligee (the government agency), and the surety (bond company). It guarantees you will follow laws and regulations. If a valid claim is paid, the surety seeks reimbursement from the principal. A bond protects the public—not the licensee.
Who requires the bond and who sets the bond amount?
How long is the bond term and how do renewals work?
How is the bond filed with the agency?