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Montrose Pawnbroker Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain a Montrose Pawnbroker bond.
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs it: All pawnbrokers operating in Montrose, Colorado
- Purpose: To protect the public from financial harm if the pawnbroker violates the terms of their license
- Who Regulates Pawnbrokers in Montrose: The Montrose City Clerk’s Office
Background
Montrose Code of Ordinances 5-11-1 requires all pawnbrokers operating in the city to obtain a license with the City Clerk’s office before conducting business. The Montrose City Council enacted the licensing requirement to ensure that pawnbrokers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, pawnbrokers must purchase and maintain a $2,000 surety bond to be eligible for licensure.
What is the Purpose of the Montrose Pawnbroker Bond?
Montrose requires pawnbrokers to purchase a surety bond as part of the application process to obtain a pawnbroker license. The bond ensures that the public will be protected from financial harm if the broker fails to comply with the regulations set forth in the Montrose Code of Ordinances 5-11-1. Specifically, the bond protects the public in the event the broker engages in any acts of fraud or mishandles a customer’s collateral. In short, the bond is a type of insurance that protects the public if the pawnbroker violates the terms of their license.
How Can an Insurance Agent Obtain a Montrose Pawnbroker Surety Bond?
BondExchange makes obtaining a Montrose Pawnbroker 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!
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Is a Credit Check Required for the Montrose Pawnbroker Bond?
No, a credit check is not required for the Montrose Pawnbroker bond. Because the bond is considered relatively low risk, the same low rate is offered to all pawnbrokers in the city regardless of their credit history.
How Much Does the Montrose Pawnbroker Bond Cost?
The Montrose Pawnbroker bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Montrose Pawnbroker Bond?
Montrose requires pawnbrokers to purchase a surety bond as a prerequisite to obtaining a pawnbroker license. To paraphrase C.R.S. 29-11.9-101, a pawnbroker is a person who advances money to a customer on the delivery of tangible personal property with the condition that the customer may repay the fixed price within a fixed period of time.
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 Pawnbrokers Apply for a License in Montrose?
Pawnbrokers in Montrose must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the City Clerk’s website for details on the process.
License Period – All Montrose Pawnbroker Licenses expire on December 31st of each year.
Step 1 – Meet the Qualifications
Montrose requires all pawnbroker license applicants to meet the following criteria:
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- Be of good moral character, and
- Not be disqualified by criminal conviction under C.R.S. 24-5-101
Step 2 – Purchase a Surety Bond
Pawnbrokers in Montrose must purchase and maintain a $2,000 surety bond.
Step 3 – Complete the Application
All Montrose Pawnbroker License applications should be submitted to the City Clerk’s Office by mail at the following address:
City of Montrose
P.O. Box 790
433 South First Street
Montrose, CO 81402
Applicants must complete the form in its entirety, get it notarized, and submit the following items:
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- $200 application fee by check
- Surety Bond
- Colorado State Sales Tax Number
- City of Montrose Sales Tax Number
- Individual History Record
- Confidential Inquiry Waiver
- Copy of Fingerprints
- Proof of all-risk property insurance
Pawnbrokers must schedule an appointment with the County Sheriff’s Office to obtain a copy of their fingerprints. Applications typically take 30 days to process, and the pawnbroker will receive their license once approved.
How do Montrose Pawnbrokers Renew Their License?
Pawnbrokers must apply for a new license before their existing one expires, as there is no specific renewal process. All Montrose Pawnbroker Licenses expire on December 31st of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Montrose Pawnbrokers?
Montrose requires pawnbrokers to purchase all-risk property insurance insuring all pledged property against loss from fire, theft, or other casualty (limits not specified). Pawnbrokers must also purchase and maintain a $2,000 surety bond.
How Do Montrose Pawnbrokers File Their Bonds?
Pawnbrokers should submit their completed bond forms, including the power of attorney, to the City Clerk’s Office at the following address:
City of Montrose
P.O. Box 790
433 South First Street
Montrose, CO 81402
The surety bond requires signatures from both the surety company that issues the bond and from the broker. 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 being applied for
- Date the bond is signed and goes into effect
- Bond amount
What Can Montrose Pawnbrokers Do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, pawnbrokers in Montrose must ensure that they:
- Do not engage in any acts of fraud
- Do not breach contracts made with consumers
- Do not mishandle a customer’s collateral
What Other Insurance Products Can Agents Offer Pawnbrokers in Montrose?
Montrose requires pawnbrokers to purchase all-risk property insurance covering all pledged property. 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 Montrose Pawnbroker Customers?
Montrose unfortunately does not provide a public database of active pawnbrokers in the city. We suggest contacting the City Clerk for a list of licensed pawnbrokers. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
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