Pawnbroker Bond - Manatee County, FL in Florida

Brief Summary

A pawnshop in Manatee County is licensed by the State of Florida, not by the county, and the $10,000 bond goes to the Florida Department of Agriculture and Consumer Services with the license application. If your business cannot show $50,000 of net worth, a surety bond is the simplest way to qualify. You pay an annual premium instead of tying up $10,000 in a bank certificate of deposit or letter of credit.

Every pawnshop in Florida, including those in Manatee County, needs a separate state license for each location under Fla. Stat. 539.001. To qualify, the applicant must either show a net worth of at least $50,000 or file a $10,000 surety bond for each license with the Florida Department of Agriculture and Consumer Services. A Florida bank certificate of deposit or irrevocable letter of credit in the same amount is also accepted.

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How to Apply for a Pawnbroker Bond:

• Decide whether you will qualify through $50,000 of net worth or through security filed with the state.
• Complete FDACS-10111, the Pawnbroking Registration Application, for each pawnshop location.
• Provide fingerprints and pay the actual cost of fingerprint analysis.
• If bonding, apply for a $10,000 surety bond for each license and sign the executed bond.
• File the bond on the FDACS form with the application and the $300 license fee for each license.
• Renew the license and keep the bond in force every year.

Detailed Information About the Florida Pawnbroker Bond:

The license and the bond come from the state

Many Manatee County owners start at the county office. The pawnbroker license itself is issued by the Florida Department of Agriculture and Consumer Services under the Florida Pawnbroking Act, Chapter 539 of the Florida Statutes. A separate license is required for each pawnshop, the license fee is $300 per license, and each license is valid for one year.

Net worth or security, not both

Section 539.001(4) gives applicants a choice. The applicant may show a net worth of at least $50,000, or file security with the department. The security can be a surety bond of $10,000 for each license, or a certificate of deposit or irrevocable letter of credit from a Florida bank in the same amount. An owner with three shops who relies on bonds needs $10,000 of security for each of the three licenses.

Rule 5J-13.003 of the Florida Administrative Code explains how to prove each option. Net worth is shown with a financial statement prepared by a Florida CPA, the Pawnbroking Net Worth Affidavit with supporting documents, or for a corporation the most recently filed federal tax return. Bonds, letters of credit and assignments of certificates of deposit are filed on the forms in FDACS-10111, the Pawnbroking Registration Application.

What the bond protects

The bond runs in favor of the department for the use and benefit of a consumer injured by the pawnbroker's fraud, misrepresentation, breach of contract, financial failure or violation of the Act. Claims are filed on the Pawnshop Claim Affidavit, FDACS-10986, within 120 days, are enforced only through the department's administrative process, and are paid pro rata. Total payouts cannot exceed the bond amount.

Local rules in Manatee County

Section 539.001(20) allows a county or city to adopt pawnbroker ordinances only if they comply with and are not more restrictive than the state law, and bars local fees or taxes on pawn transactions. Zoning and land use approval for the shop location still come from local government, so check with Manatee County or your city before you sign a lease.

Eligibility and Requirements for a Florida Pawnbroker Bond:

• A separate state license for each pawnshop location.
• Net worth of at least $50,000, or a $10,000 bond, Florida bank certificate of deposit or irrevocable letter of credit for each license.
• Florida Department of Agriculture and Consumer Services as obligee, for the benefit of injured consumers.
• Business name and owner details on the bond matching the license application exactly.
• Owner credit review by the surety, which shapes the premium.

Florida Pawnbroker Bond FAQs:

Official and Additional Resources for the Florida Pawnbroker Bond: