Surety Bond Encyclopedia

Second Hand Dealer Bond - Babylon Township, NY in New York

Brief Summary

The Town Clerk will not issue a Babylon secondhand dealer license until the bond is on file, and the general license needs $20,000 for every store you run. A surety bond meets that figure for a yearly premium, so your cash stays in inventory instead of sitting with the Town.

Town of Babylon Code section 162-8 requires a general secondhand dealer licensee to file a bond of $20,000 per business location with the Town of Babylon, and a management licensee to file a $30,000 bond covering the licensee and its exhibitors. Exposition licenses carry no bond. Bonds are filed with the Town Clerk and conditioned on observing Chapter 162.

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How to Apply for a Second Hand Dealer Bond:

Pick the license class: general, management or exposition.
Count your business locations. A general license needs $20,000 of bond for each one.
Get the Town Clerk's application forms and complete them under oath.
Gather your trade name, partnership, incorporation or authority to do business certificate.
Be ready to provide two recent photographs and fingerprints if the Clerk asks.
File the bond naming the Town of Babylon with the Town Clerk and pay the license fee.

Detailed Information About the New York Second Hand Dealer Bond:

The bond depends on the license class

Chapter 162 of the Babylon Town Code sets three license classes, and section 162-8 ties a different bond to each.

**General license:** for dealers in secondhand merchandise. Bond of $20,000 per business location and a $2,500 annual fee. Expires on the April 30 after it is issued.
**Management license:** for a person who is not a dealer and manages an antiques exposition. Bond of $30,000 covering the licensee and the exhibitors, and a $2,500 fee. Expires 30 days after issuance.
**Exposition license:** for an antique dealer with no business location in the town who exhibits at an exposition. No bond and a $250 fee. Expires 30 days after issuance.

A dealer with two stores under a general license needs $20,000 of bond for each location.

Where the chapter applies

Section 162-2 makes it unlawful to deal in secondhand merchandise in the unincorporated areas of the Town of Babylon without a license. Businesses inside an incorporated village in the town should check with that village.

What counts as secondhand merchandise

Section 162-1 defines a dealer as anyone who buys or sells used goods as a business, takes goods back as credit, or deals in pawn tickets. The definition excludes several categories, including automobiles, pianos, books, magazines, rugs, tapestries, paintings, sculpture, drawings, etchings and engravings, donated thrift shop goods, and antiques worth under $250 with no serial numbers or identifying marks. Antique expositions sponsored by religious, charitable, educational, service, veterans, fraternal or volunteer fire organizations are exempt under section 162-5 when the conditions there are met.

Applying

Applications are made to the Town Clerk on the Clerk's forms and verified under oath. The Clerk may require two recent photographs and fingerprints of the applicant, partners or officers holding 10 percent or more of the stock. The Clerk may not license applicants convicted of crimes involving larceny, fraud or stolen property, or anyone whose license was revoked in the prior year. The Town Clerk's office is at 200 E. Sunrise Highway, Lindenhurst, NY 11757, phone (631) 957-4292.

Eligibility and Requirements for a New York Second Hand Dealer Bond:

General license bond of $20,000 per business location under Babylon Town Code 162-8.
Management license bond of $30,000 covering the licensee and exhibitors.
Bond in favor of the Town of Babylon, conditioned on observing Chapter 162.
General license fee of $2,500 per year, expiring each April 30.
Bound, consecutively numbered transaction book kept under section 162-9.

New York Second Hand Dealer Bond FAQs:

How much is the Babylon secondhand dealer bond?

It depends on the license class. A general license needs $20,000 for each business location, a management license needs $30,000, and an exposition license needs no bond.

When does the license expire?

A general license expires on the April 30 after it is issued. Management and exposition licenses expire 30 days after issuance. Keep the bond in force for as long as the license is active.

Does this apply in the incorporated villages?

Chapter 162 covers the unincorporated areas of the Town of Babylon. If your shop is inside an incorporated village, check that village's rules.

Are some items left out of the law?

Yes. Section 162-1 excludes automobiles, pianos, books, magazines, rugs, tapestries, artwork, donated thrift shop goods and antiques under $250 without serial numbers or identifying marks, among others.

What does the bond guarantee?

That the licensee will follow Chapter 162, including its licensing, record keeping and holding rules. Valid claims are paid by the surety up to the bond amount, and the dealer repays the surety.