Pawn Broker Surety Bond

A Pawn Broker Surety Bond is a license and permit surety bond required by various jurisdictions of those who operate as a pawn broker or pawn shop in that jurisdiction. A pawn broker essentially offers their customers high interest, short-term loans with items of personal property used as collateral. Individuals can obtain the loan through the outright sell of the personal item and the broker then becomes a secondhand dealer of the item. Or the broker can loan money based on a valuation of the personal property with the agreement to sell it back at a stipulated price plus interest within a certain contractual period. The surety bond guarantees that the pawn broker will not sell the persona item before the end of the contractual period, that they will honor the sell back price and interest cost agreed upon, and that they will not charge more interest than statutorily allowed.