New Rochelle Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Lowest Cost: $100 per year
- Bond Amount: $1,000
- Who Needs it: All secondhand dealers operating in New Rochelle, New York
- Purpose: To protect the public from financial harm if the secondhand dealer violates the terms of their license
- Who Regulates Secondhand Dealers in New Rochelle: The New Rochelle City Clerk
Background
New Rochelle Municipal Code 264-1 requires all secondhand dealers operating in the city to obtain a license from the New Rochelle City Clerk. The New Rochelle City Council 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 $1,000 surety bond to be eligible for a license.
What is the Purpose of the New Rochelle Secondhand Dealer Bond?
New Rochelle requires secondhand dealers to purchase a surety bond as part of the application process to obtain a license. The bond protects the public from financial harm if the secondhand dealer fails to comply with the regulations set forth in New Rochelle Municipal Code 264-2. Specifically, the bond protects the public if the secondhand dealer engages in any acts of fraud, breaches any consumer contracts, or fails to provide all goods that have been paid for. 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 New Rochelle Secondhand Dealer Surety Bond?
BondExchange makes obtaining a New Rochelle 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.
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Is a Credit Check Required for the New Rochelle Secondhand Dealer Bond?
No, a credit check is not required for the New Rochelle Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers operating in the city, regardless of their credit history.
How Much Does the New Rochelle Secondhand Dealer Bond Cost?
The New Rochelle Secondhand Dealer bond costs just $100 per year.
Who is Required to Purchase the Bond?
New Rochelle requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a license. To paraphrase New Rochelle Municipal Code 264-1, a secondhand dealer is a person who purchases or collects secondhand furniture, machinery, jewelry, clothes, or other property from a person who is not a wholesaler, for the purpose of reselling or exchanging the property.
Exemptions to this requirement include:
- Auctions of real estate
- Sales of coins or stamps by collectors
How Do Secondhand Dealers Apply for a License in New Rochelle?
Secondhand dealers in New Rochelle must navigate several steps to obtain a license. Below are the general guidelines, but applicants refer to the application checklist for details on the process.
License Period – All New Rochelle Secondhand Dealer Licenses expire one year from the date of issuance and must be renewed before the expiration date.
Step 1 – Purchase a Surety Bond
Secondhand dealers must purchase and maintain a $1,000 surety bond.
Step 2 – Submit an Application
Secondhand dealers must submit their completed application to the City Clerk’s Office by mail or in person at the following address:
City Hall
515 North Avenue
New Rochelle, NY 10801
Dealers must complete the form in its entirety and include the completed surety bond form along with a $145 license fee when submitting. Contact the City Clerk’s Office for additional assistance in the application process.
How Do New Rochelle Secondhand Dealers Renew Their Licenses?
To renew their license, secondhand dealers must submit a completed renewal application and a $145 license fee to the City Clerk at the following address:
City Hall
515 North Avenue
New Rochelle, NY 10801
All New Rochelle Secondhand Dealer Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Secondhand Dealers in New Rochelle?
New Rochelle does not require secondhand 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 dealers must purchase and maintain a surety bond.
How Do New Rochelle Secondhand Dealers File Their Bonds?
Secondhand dealers should mail their completed bond forms, including the power of attorney, to the New Rochelle City Clerk at the following address:
City Hall
515 North Avenue
New Rochelle, NY 10801
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 of the entity/individual(s) buying the bond
- Surety company’s name and address
- License issuance date
- Notary acknowledgments
What Can New Rochelle Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in New Rochelle must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Provide all goods that have been paid for
What Other Insurance Products Can Agents Offer Secondhand Dealers in New Rochelle?
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 New Rochelle Secondhand Dealer Customers?
New Rochelle unfortunately does not provide a public database of active secondhand dealers in the city. We suggest contacting the City Clerk to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
