Jersey City Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $1,500
- Who Needs it: All secondhand dealers operating in Jersey City, New Jersey
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in Jersey City: The Jersey City Division of Commerce
Background
Jersey City Code of Ordinances 275-3 requires all secondhand dealers operating in the city to obtain a license from the Division of Commerce. The City Council of Jersey City enacted the licensing requirement to ensure that secondhand dealers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, secondhand dealers must purchase and maintain a $1,500 surety bond to be eligible for licensure.
What is the Purpose of the Jersey City Secondhand Dealer Bond?
Jersey City requires secondhand dealers to purchase a surety bond as part of the application process to obtain a business license. The bond protects the public from financial harm if the secondhand dealer fails to comply with the regulations set forth in Jersey City Code of Ordinances 275-6. Specifically, the bond protects the public if the secondhand dealer engages in any acts of fraud or breaches consumer contracts. In short, the bond is a type of insurance that protects the public if the secondhand dealer violates the terms of their license.
How Can an Insurance Agent Obtain a Jersey City Secondhand Dealer Surety Bond?
BondExchange makes obtaining a Jersey City Secondhand Dealer surety bond easy. Simply login to your account and use our keyword search to find the “Secondhand Dealer” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Not an agent? Then let us pair you with one!
Click the above image to find a BX Agent near you
Is a Credit Check Required for the Jersey City Secondhand Dealer Bond?
No, a credit check is not required for the Jersey City Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers in the city regardless of their credit history.
How Much Does the Jersey City Secondhand Dealer Bond Cost?
The Jersey City Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Jersey City requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a business license. Dealers must obtain either a Class A license or a Class B license depending on the type of goods the dealer plans to sell.
To paraphrase Jersey City Code of Ordinances 275-1, a Class A secondhand dealer is a person who deals in the purchase or sales of all previously owned goods except items specifically regulated under Class B licenses. Likewise, a Class B secondhand dealer is a person who deals in the purchase or sale of the following previously owned goods:
- Items containing gold, silver, or other precious metals
- Precious metals for the purpose of melting
- Pawn tickets or pledged articles
- Paintings, coins, stamps, baseball cards, cameras, business machines, or electronic equipment
Exemptions to these definitions include sales of the following items:
- Pianos, books, magazines, and rugs
- Newly imported secondhand goods
- Paintings, sculptures, drawings, tapestries, etc.
- Merchandise given as an exchange or refund
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Secondhand Dealers Apply for a License in Jersey City?
Secondhand dealers in Jersey City must navigate several steps to obtain a license. Dealers must obtain a specific type of license depending on the type of goods to be sold. Below are the general guidelines, but applicants should visit the Division of Commerce’s website for details on the process.
License Period – All Jersey City Secondhand Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
Step 1 – Obtain Zoning Approval
Prior to submitting an application, secondhand dealers must obtain zoning approval for their business location. Contact the Zoning Division for assistance.
Step 2 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $1,500 surety bond.
Step 3 – Complete the Application
Secondhand dealers are required to submit their application to the Division of Commerce by mail to the following address:
4 Jackson Square
Jersey City, NJ 07305
Class A License applications can be found here and Class B License applications can be found here. Applicants must complete the form in its entirety and submit the following items:
-
- Surety bond
- Wage theft certification
- $41 state background check fee
- $20 background check processing fee
- Two photographs and fingerprints of the dealer
- Two forms of identification (social security card and photo I.D.)
Class A dealers must pay a $200 license fee while Class B dealers must pay a $1,000 license fee. All secondhand dealers must get their application notarized by a commissioned notary public, and applicants will be subject to a background check. Contact the Division of Commerce for assistance with the application process.
How do Jersey City Secondhand Dealers Renew Their Licenses?
Secondhand dealers should submit their renewal application to the Division of Commerce by mail to the following address:
4 Jackson Square
Jersey City, NJ 07305
Class A License renewal applications can be found here and Class B License renewal applications can be found here. All Jersey City Secondhand Goods Dealer Licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Jersey City Secondhand Dealers?
Jersey City does not require secondhand dealers to purchase any form of liability insurance. Dealers must purchase and maintain a $1,500 surety bond.
How Do Jersey City Secondhand Dealers File Their Bonds?
Secondhand dealers should mail or deliver their completed bond forms, including the power of attorney, to the Division of Commerce at the following address:
4 Jackson Square
Jersey City, NJ 07305
The bond requires signatures, including witness signatures, from both the surety company that issues the bond and the applicant. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Name of the obligee and the license type applied for
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Jersey City Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, secondhand dealers in Jersey City must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
What Other Insurance Products Can Agents Offer Secondhand Dealers in Jersey City?
Jersey City does not require secondhand dealers to purchase liability insurance. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Jersey City Secondhand Dealer Customers?
Jersey City unfortunately does not provide a public database of active secondhand dealers in the city. We suggest contacting the Division of Commerce to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
