North Hempstead Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: Either $2,000 or $10,000 (more on this later)
- Who Needs it: All secondhand dealers operating in the unincorporated areas of North Hempstead, 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 North Hempstead: The North Hempstead Town Clerk
Background
North Hempstead Town Code 13-3 requires all secondhand dealers operating in the unincorporated areas of the township to obtain a license from the Town Clerk prior to conducting business. The North Hempstead Town 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 surety bond to be eligible for a license.
The unincorporated areas of North Hempstead Township include the following:
- Manhasset
- North New Hyde Park
- Port Washington
What is the Purpose of the North Hempstead Secondhand Dealer Bond?
North Hempstead 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 North Hempstead Town Code 13-10. Specifically, the bond protects the public if the secondhand dealer engages in any acts of fraud or breaches any 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 North Hempstead Secondhand Dealer Surety Bond?
BondExchange makes obtaining a North Hempstead Secondhand Dealer 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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How is the Bond Amount Determined?
North Hempstead Town Code 13-10 dictates that dealers seeking a General license must purchase and maintain a $2,000 surety bond while dealers seeking a Management license must purchase and maintain a $10,000 surety bond. Dealers seeking to obtain an Exposition license are not required to purchase a surety bond.
Is a Credit Check Required for the North Hempstead Secondhand Dealer Bond?
No, a credit check is not required for the North Hempstead Secondhand Dealer bond. Because the bond is considered relatively low risk, the same low rate is offered to all secondhand dealers operating in the town, regardless of their credit history.
How Much Does the North Hempstead Secondhand Dealer Bond Cost?
The North Hempstead Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the North Hempstead Secondhand Dealer Bond?
North Hempstead requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a General or Management Secondhand Dealer License. To paraphrase North Hempstead Town Code 13-2, a secondhand dealer is a person engaged in the business of buying, selling, or trading previously owned property for the purpose of reselling or exchanging the property.
Exemptions to this definition include:
- Automobiles, pianos, books, or magazines
- Rugs, tapestries, artists’ burlaps, paintings, or other artwork
- Refunds or exchanges of new merchandise
- Antiques with a value of less than $250
- Sales by non-profit organizations
Dealers seeking to obtain an Exposition Secondhand Dealer license are not required to purchase a surety bond.
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 North Hempstead?
Secondhand dealers in North Hempstead must navigate several steps to obtain a license and must obtain a separate license for each location they plan to operate. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All North Hempstead General Secondhand Dealer Licenses expire on April 30 of each year and must be renewed before the expiration date. All North Hempstead Management and Exposition Secondhand Dealer Licenses expire one month from the date of issuance.
Step 1 – Meet the Qualifications
To be eligible to apply for a secondhand dealer license, applicants must meet all of the following criteria:
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- Be at least 18 years old
- Have not been convicted in New York for any crime involving larceny, fraud, or sale or possession of stolen property
- Have not had a secondhand dealer license revoked in the past
Step 2 – Determined the Class of License
North Hempstead requires secondhand dealers to obtain a specific license class based on the nature of the business, as outlined below:
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- General: Dealers with a physical place of business in the Town of North Hempstead who plans to sell secondhand goods for a full year
- Management: Dealers with a physical place of business in the Town of North Hempstead who plan to sell secondhand goods for up to a month, typically for a fair or an event
- Exposition: Dealers with no physical place of business in the Town of North Hempstead who plan to sell secondhand goods for up to a month, typically for a fair or an event
Step 3 – Purchase a Surety Bond
Secondhand dealers seeking to obtain a General or Management License must purchase and maintain a surety bond. Dealers seeking to obtain an Exposition Secondhand Dealer license are not required to purchase a surety bond.
Step 4 – Contact the Town Clerk
To obtain a permit application, dealers must contact the Town Clerk by email or phone at (516) 869-6311. The clerk will walk them through the application process, provide them with all required forms, and answer any questions they may have. All license applications will, at a minimum, require the following items:
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- Surety bond
- Two photographs of the applicant
- Set of the applicant’s fingerprints
Applicants seeking a General or Management License must pay a $100 fee while those applying for an Exposition License must pay a $50 fee. All applicants will be subject to a background check.
How Do North Hempstead Secondhand Dealers Renew Their Licenses?
Secondhand dealers must contact the Town Clerk to renew their license. Secondhand dealers must pay a renewal fee and renew their surety bond to avoid termination of their license.
All North Hempstead General Secondhand Dealer Licenses expire on April 30 of each year and must be renewed before the expiration date. All North Hempstead Management and Exposition Secondhand Dealer Licenses expire one month from the date of issuance.
What are the Insurance Requirements for Secondhand Dealers in North Hempstead?
North Hempstead does not require secondhand dealers to purchase any additional insurance. However, secondhand dealers must purchase and maintain a surety bond.
How Do North Hempstead Secondhand Dealers File Their Bonds?
Secondhand dealers should mail their completed bond forms, including the power of attorney, to the Town Clerk at the following address:
200 Plandome Rd
Manhasset, NY 11030
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
- License term period
- Signing date of the bond
- Bond amount
What Can North Hempstead Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in Hempstead must ensure that they:
- Do not engage in any acts of fraud
- Faithfully honor all consumer contracts
- Do not purchase or sell any stolen goods
What Other Insurance Products Can Agents Offer Secondhand Dealers in North Hempstead?
North Hempstead does not require secondhand dealers to purchase any 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. Agents can access a list of brokers online here.
How Can Insurance Agents Prospect for North Hempstead Secondhand Dealer Customers?
North Hempstead unfortunately does not provide a public database of active secondhand dealers in the town. We suggest contacting the Town Clerk to obtain this information. Contact BondExchange for additional marketing resources. Also, agents can leverage our print-mail relationships for discounted mailing services.
