Surety Bond Encyclopedia

Pawnbroker $2,000 Bond - Montrose, CO in Colorado

Brief Summary

The $2,000 bond is the smallest piece of a Montrose pawnbroker application, and it is usually the quickest one to finish. The city wants a copy of it in the packet along with the $200 fee, proof of insurance on pledged goods and background paperwork for everyone involved. Get the bond issued first and the rest of the packet is what takes the time.

The City of Montrose requires a $2,000 surety bond from every applicant for a pawnbroker's license. The bond runs in favor of the city and the pawnbroker's customers, and it guarantees that the business follows Chapter 5-11 of the Montrose Municipal Code and Colorado's pawnbroker law and safely keeps or returns every item held on pledge. A copy goes to the City Clerk with the application and the $200 license fee.

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How to Apply for a Pawnbroker $2,000 Bond:

Business name and address in Montrose, plus the owner or principal's name and home address.
Owner credit review for the surety application.
Pay the premium and receive the executed $2,000 bond naming the City of Montrose.
Put a copy of the bond in the license packet with the notarized application and the $200 fee.
Add proof of all-risk insurance on pledged property, the Individual History Records, Confidential Inquiry Waivers and fingerprint results.
Submit the packet to the Montrose City Clerk.

Detailed Information About the Colorado Pawnbroker $2,000 Bond:

What the city asks for

Montrose licenses pawnbrokers through the City Clerk under Title V, Chapter 5-11 of the Montrose Municipal Code. The city's Pawnbroker License Application checklist lists a copy of a $2,000 surety bond "guaranteeing the faithful and honest conduct of business," with the bond running in favor of the city and the applicant's customers.

The application itself spells out the condition. The bond must be conditioned on following Section 5-11 of the Montrose code and the state pawnbroker statute, and on the safekeeping or return of all articles held on pledge. In practice that means a customer whose pledged item is lost, sold early or not returned has a claim against the bond, and so does the city.

The bond is not the only security item

Montrose also requires proof of all-risk property insurance covering all pledged property against loss from fire, theft or other casualty. The insurance protects the goods. The bond protects customers and the city if the business breaks the rules. You need both, and the packet is not complete without the insurance.

The rest of the packet

The application must be signed and notarized and submitted with a $200 check payable to the City of Montrose. Every applicant, agent, employee and owner completes an Individual History Record and a Confidential Inquiry Waiver, and fingerprints are processed through Colorado Fingerprinting or IdentoGO, with results sent straight to the City Clerk. Corporations list their officers and partnerships list each partner. The city asks for three references and both your Colorado and City of Montrose sales tax numbers. The city says licenses are issued in roughly 30 days from the date a complete application is submitted.

State law

Colorado's pawnbroker statute now sits at C.R.S. 29-11.9-101 and following. The Montrose form still cites the older statute number, so do not be thrown if the citations do not match. Confirm the current bond form and any renewal steps with the City Clerk before the bond is issued.

What it costs

You pay the surety an annual premium, not the $2,000 face amount. The premium is set by the surety based mainly on the owner's personal credit and business history. Because the bond amount is small, the premium is a small part of the total cost of getting licensed.

Eligibility and Requirements for a Colorado Pawnbroker $2,000 Bond:

Bond amount of $2,000.
Bond running in favor of the City of Montrose and the pawnbroker's customers.
Condition covering compliance with Montrose Municipal Code Chapter 5-11 and state pawnbroker law, plus safekeeping or return of pledged articles.
Separate all-risk property insurance on pledged goods. The insurance does not replace the bond.
Background check and fingerprints for the applicant, agents, employees and owners.

Colorado Pawnbroker $2,000 Bond FAQs:

Who can make a claim on this bond?

The bond runs in favor of both the City of Montrose and the pawnbroker's customers. A customer whose pledged item is not kept safely or returned as required can claim against it, and so can the city for violations of Chapter 5-11.

I have insurance on the goods in my shop. Do I still need the bond?

Yes. Montrose requires both. The all-risk insurance covers pledged property against fire, theft or other casualty. The $2,000 bond covers your compliance with the city code and state law.

What else has to go in with the bond?

A signed, notarized application, a $200 check to the City of Montrose, proof of all-risk insurance on pledged property, Individual History Records and Confidential Inquiry Waivers for everyone involved, and fingerprints processed through Colorado Fingerprinting or IdentoGO.

How long does the license take?

The city says it aims to issue the license within about 30 days of a complete application. The bond can be issued well before that, so it should not be what holds you up.