Pasadena Secondhand Metal Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year
- Bond Amount: $10,000
- Who Needs it: All secondhand metal dealers operating in Pasadena, Texas
- Purpose: To protect the public from financial harm if the dealer violates the terms of their permit
- Who Regulates Secondhand Metal Dealers in Pasadena: The Pasadena Health Department
Background
Pasadena Code of Ordinances 17-153 requires all secondhand metal dealers operating in the city to obtain a permit from the Health Department. The Pasadena City Council enacted the permitting requirement to ensure that dealers engage in ethical business practices. To provide financial security for the enforcement of the permitting law, secondhand metal dealers must purchase and maintain a $10,000 surety bond to be eligible for a permit.
What is the Purpose of the Pasadena Secondhand Metal Dealer Bond?
Pasadena requires secondhand metal dealers to purchase a surety bond as part of the application process to obtain a permit. The bond protects the public from financial harm if the dealer fails to comply with the regulations set forth in Pasadena Code of Ordinances 17-154. Specifically, the bond protects the public if the dealer engages in any acts of fraud or fails to pay all required taxes, fines, and fees. In short, the bond is a type of insurance that protects the public if the secondhand metal dealer violates the terms of their permit.
How Can an Insurance Agent Obtain a Pasadena Secondhand Metal Dealer Surety Bond?
BondExchange makes obtaining a Pasadena Secondhand Metal Dealer bond easy. Simply log in to your account and use our keyword search to find the “Pawnbroker” 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 at (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 Pasadena Secondhand Metal Dealer Bond?
No, a credit check is not required for the Pasadena Secondhand Metal Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers operating in the city, regardless of their credit history.
How Much Does the Pasadena Secondhand Metal Dealer Bond Cost?
The Pasadena Secondhand Metal Dealer bond costs just $100 per year.
Who is Required to Purchase the Pasadena Secondhand Metal Dealer Bond?
Pasadena requires secondhand metal dealers to purchase a surety bond as a prerequisite to obtaining a permit. To paraphrase Pasadena Code of Ordinances 17-151, secondhand metal dealers are defined as any person who performs the following activities during the course of business:
- Purchasing aluminum cans
- Utilizing machinery or equipment for the processing of scrap metals
- Operates or maintains a scrap metal yard or other storage facility for scrap metal
How Do Secondhand Metal Dealers Apply for a Permit in Pasadena?
Secondhand metal dealers in Pasadena must navigate several steps to obtain a permit, and must obtain a separate permit for each location they operate. Below are the general guidelines, but applicants should refer to the regulatory statutes for details on the process.
Permit Term – All Pasadena Secondhand Metal Dealer Permits expire on October 15 of each year and must be renewed before the expiration date.
Step 1 – Meet the Qualifications
To be eligible, secondhand metal dealers must ensure they meet the following criteria:
-
- Must be at least 18 years old
- Have not had a license revoked in the past year
Step 2 – Purchase a Surety Bond
Secondhand metal dealers must purchase and maintain a $10,000 surety bond.
Step 3 – Submit an Application
Secondhand metal dealers must submit their completed application to the Health Department by mail or in person at the following address:
P.O. Box 672
Pasadena, TX 77501
Applicants must complete the form in its entirety, get it notarized, and ensure they submit the following items:
-
- $250 permit fee
- Surety bond
- Photocopy of driver’s license
- Copy of the Certificate of Occupancy
- Proof of ownership or authorization of business location
- Certified copy of the deed restrictions for the property
Contact the Public Health Department for additional assistance in the application process.
How Do Pasadena Secondhand Metal Dealers Renew Their Permits?
To renew their permit, secondhand metal dealers should contact the Public Health Department to obtain a renewal application. Dealers must pay a $250 renewal fee and ensure that they renew their surety bond to avoid termination of their permit. All Pasadena Secondhand Metal Dealer Permits expire on October 15 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Secondhand Metal Dealers in Pasadena?
Pasadena does not require secondhand metal dealers to purchase any form of liability insurance. However, dealers may need to obtain insurance as a prerequisite to obtaining a state business license. Secondhand metal dealers must purchase and maintain a $10,000 surety bond.
How Do Pasadena Secondhand Metal Dealers File Their Bonds?
Secondhand metal dealers should deliver their completed bond forms, including the power of attorney, to the Pasadena Health Department at the following address:
P.O. Box 672
Pasadena, TX 77501
The bond requires 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, address, and phone number of the entity/individual(s) buying the bond
- Surety company’s name
- Name of the obligee
- Date the permit goes into effect and expires
What Can Pasadena Secondhand Metal Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand metal dealers in Pasadena must ensure that they:
- Do not engage in any acts of fraud
- Pay all required taxes, fines, and fees
What Other Insurance Products Can Agents Offer Secondhand Metal Dealers in Pasadena?
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 Pasadena Secondhand Metal Dealer Customers?
Pasadena unfortunately does not provide a public database of active secondhand metal dealers in the city. However, we suggest contacting the Public Health Department to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
