Oregon Pawnbroker Bond - $25,000
Pawn brokers face a lot of responsibilities legally due to the nature of their transactions. By buying items temporarily for a sum of money, they are automatically bound to a seller. Pawnbroker bonds are responsible for keeping these transactions void of any monetary damages for the seller.
The importance of this surety bond is increasing nowadays as more people depend on pawning to fund for short-term necessities. These are especially necessary for about 30 million Americans who depend on the loan because of being unbanked or being underbanked. The use of the loans may range from keeping electricity and necessity bills paid, paying for gasoline, and anything that may need to be paid monthly.
What is the Oregon Pawnbroker Bond?
As its name suggest, the Pawnbroker Bond is specifically for the state of Oregon. As stated in the laws of the state, the pawnbroker bond is required for brokers who will have a transaction. Business are required to pay $25,000 for this bond to be able to activate their license.
For more information on licensing requirements of pawnbrokers, please visit the page of the Division of Financial Regulation.
Why do you need the Oregon Pawnbroker Bond?
The main reason for having the surety bond is because of the legal requirements as stated by the Oregon statutory laws. Aside from this, it also allows the lender to be secured in their transactions. The grounds of the agreement between the broker and the lender will be followed because of this surety bond.
Securing your own licensing bond also ensures the following:
- Your customers will feel safer with your business
- The financial security of your customers is ensured
- You will be able to use your full line of credit
- Your transactions is ensured to be confidential (unless required by authorities)
- Your access to professional advice counselling from lawyers, estimators, and similar professionals.
How does the bond work?
The parties in the agreement are the Principal (pawnbrokers or applicant), Obligee (State of Oregon), and Surety/Bond Company or Obligor (surety bond provider). The bond must be filed with the Oregon Department of Consumer and Business Services and must be issued by a surety bond provider certified by the state’s Insurance Department.
How much does it cost?
The Oregon Pawnbroker Bond has a pricing structure that will largely depend on the employer’s credit score, industry experience, business history, and the surety provider’s background, although they will normally cost between $250 and $1,250 and are typically charged as such:
| Premium Rate | Bond Cost |
|---|---|
| 1.00% | $250 |
| 1.50% | $375 |
| 2.00% | $500 |
| 2.50% | $625 |
| 3.00% | $750 |
| 4.00% | $1000 |
| 5.00% | $1250 |
How can I secure the Oregon Pawnbroker Bond?
Transact with a reputable surety company today and secure your Oregon Pawnbroker Bond the fast and easy way. If you have more questions or are in need of more information, get in touch with us today.
Make sure you have gathered and provided accurate information on the following for the speedy processing of your application:
- Nature of your business
- Credit Score
- Financial strength
Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond. Once the assessment is done, we will promptly issue your bond and send it your way!