Pawn / Secondhand / Precious Metals & Stones Broker ($2,000) Bond - City of New Haven, CT in Connecticut

Brief Summary

New Haven does not issue separate pawn, secondhand and precious metals licenses. One broker license covers all of them, and it carries one $2,000 surety bond. For a small premium you file the bond once the license issues and keep buying, lending and reselling without posting cash with the city.

New Haven Code Sec. 17-6.2 makes it unlawful to do business as a broker without a current license, and Sec. 17-6.1 defines broker to include secondhand dealers, antique and precious metal dealers, pawnbrokers, junk dealers and swap shop dealers. Under Sec. 17-6.5 the licensee files a $2,000 bond with competent surety, conditioned for faithful performance of the duties of the business. The license fee is $50 for new applicants and $25 for renewals.

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How to Apply for a Pawn / Secondhand / Precious Metals & Stones Broker ($2,000) Bond:

• Completed and notarized broker application packet from the Permit and License Center.
• Valid photo ID showing your current address.
• Connecticut Sales Tax and Use Permit or state tax identification number.
• Fingerprinting at the New Haven Police Department, $25 per applicant payable to Biometric Identification Services.
• $50 license fee for a new applicant, or $25 for a renewal.
• An executed $2,000 surety bond filed once the license is issued.

Detailed Information About the Connecticut Pawn / Secondhand / Precious Metals & Stones Broker ($2,000) Bond:

One license, one bond

Many applicants go looking for a pawnbroker license, a secondhand dealer license and a precious metals license. In New Haven those are all the same broker license. Sec. 17-6.1 defines a broker as any person who engages in the business of buying or bartering articles from the public and reselling them to the public, and says the term includes everyone the city previously classified as secondhand dealers, antique or precious metal dealers, pawnbrokers, junk dealers and swap shop dealers. Articles include gold and silver ware, watches, jewelry, precious stones, coins, scrap and other secondhand goods.

Who is left out

The ordinance excludes motor vehicle dealers, scrap metal processors and dealers in antique household furniture, china or glassware.

The bond

Sec. 17-6.5 says that upon issuance of a license the licensee shall file the bond required by CGS 21-40. The bond, with competent surety, is in the sum of $2,000 and is conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed. The issuer approves the bond and turns it over to the city controller. The amount is flat, with no tiers.

State law in the background

CGS 21-40 sets the same $2,000 bond for pawnbrokers, payable to the city or town. It also waives that bond for a person who is licensed as a secondhand dealer under CGS 21-47d, which carries its own $10,000 bond. If your business holds or needs a state secondhand dealer license, ask the Permit and License Center which bond the city wants on file before either one is issued.

Getting licensed

The city's packet asks new applicants for a completed and notarized application, valid photo ID with current address, a Connecticut Sales Tax and Use Permit or state tax ID, the $2,000 bond and the $50 license fee. New applicants are fingerprinted at the New Haven Police Department, One Union Avenue, for $25 per applicant payable to Biometric Identification Services. Renewal applicants submit a completed application, photo ID and the $25 fee. Under Sec. 17-1.13 a license runs one year from its issuance date.

Duties after licensing

Brokers must give the police a sworn statement of transactions every week by Monday at 12:00 noon, and a broker who willfully fails to report faces a $100 fine per offense. Precious metals must be held at least 10 days before they are disposed of. The police chief or a designee may inspect the broker's records, premises and stock at any time.

What the premium depends on

The city does not set the premium. The surety prices it from the owner's credit and business history.

Eligibility and Requirements for a Connecticut Pawn / Secondhand / Precious Metals & Stones Broker ($2,000) Bond:

• Bond with competent surety in the sum of $2,000, conditioned for faithful performance of the business's duties.
• Bond approved by the issuer and turned over to the city controller.
• License renewed before it expires, one year from its issuance date.
• Weekly sworn statement of transactions to the police by Monday at 12:00 noon.
• Precious metals held at least 10 days before disposal.

Connecticut Pawn / Secondhand / Precious Metals & Stones Broker ($2,000) Bond FAQs:

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