Oyster Bay Secondhand Dealer Bond: A Comprehensive Guide
At a Glance:
- Average Cost: $100 per year or $10 per month
- Bond Amount: $2,000
- Who Needs it: Most secondhand dealers operating in Oyster Bay, 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 Oyster Bay: The Oyster Bay Town Clerk
Background
Oyster Bay Town Code 192-8 requires all secondhand dealers operating in the town to obtain a license from the Town Clerk prior to conducting business. The Oyster Bay Town Board 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, most secondhand dealers must purchase and maintain a $2,000 surety bond to be eligible for a license.
What is the Purpose of the Oyster Bay Secondhand Dealer Bond?
Oyster Bay requires most 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 Oyster Bay Town Code 192-8. 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 an Oyster Bay Secondhand Dealer Surety Bond?
BondExchange makes obtaining an Oyster Bay 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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Is a Credit Check Required for the Oyster Bay Secondhand Dealer Bond?
No, a credit check is not required for the Oyster Bay 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 Oyster Bay Secondhand Dealer Bond Cost?
The Oyster Bay Secondhand Dealer bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Oyster Bay Secondhand Dealer Bond?
Oyster Bay requires secondhand dealers to purchase a surety bond as a prerequisite to obtaining a General or Management Secondhand Dealer License. To paraphrase Oyster Bay Town Code 192-3, 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
- Non-profit organizations selling at fairs or exhibitions
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 Oyster Bay?
Secondhand dealers in Oyster Bay 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 or the Town Clerk’s website for details on the process.
License Period – All Oyster Bay General Secondhand Dealer Licenses expire on September 30 of each year and must be renewed before the expiration date. All Oyster Bay Management and Exposition Secondhand Dealer Licenses expire one month from the date of issuance.
Step 1 – Determined the Class of License
Oyster Bay 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 Oyster Bay who plans to sell secondhand goods for a full year
- Management: Dealers with a physical place of business in the Town of Oyster Bay 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 Oyster Bay who plan to sell secondhand goods for up to a month, typically for a fair or an event
Step 2 – Purchase a Surety Bond
Secondhand dealers seeking to obtain a General or Management License must purchase and maintain a $2,000 surety bond. Dealers seeking to obtain an Exposition Secondhand Dealer license are not required to purchase a surety bond.
Step 3 – Contact the Town Clerk
To obtain a permit application, dealers must contact the Town Clerk by email or phone at (516) 624-6343. 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 Oyster Bay 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 Oyster Bay General Secondhand Dealer Licenses expire on September 30 of each year and must be renewed before the expiration date. All Oyster Bay Management and Exposition Secondhand Dealer Licenses expire one month from the date of issuance.
What are the Insurance Requirements for Secondhand Dealers in Oyster Bay?
Oyster Bay does not require secondhand dealers to purchase any additional insurance. Secondhand dealers must purchase and maintain a $2,000 surety bond.
How Do Oyster Bay 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:
54 Audrey Avenue
Oyster Bay, NY 11771
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 state of incorporation
- Name of the obligee and the license type being applied for
- Date the bond goes into effect
- Signing date of the bond
- Bond amount
What Can Oyster Bay Secondhand Dealers do to Avoid Claims Made Against Their Bonds?
To avoid claims on their bonds, secondhand dealers in Oyster Bay 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 Oyster Bay?
Oyster Bay 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 Oyster Bay Secondhand Dealer Customers?
Oyster Bay 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.
