Precious Metals Dealer ($10,000) (NMLS) Bond - Statewide in Ohio

Brief Summary

The $10,000 bond is how an Ohio precious metals dealer applicant meets the financial responsibility test in ORC 4728.03 without documenting and holding $10,000 of net worth. It fits a new buying operation or a thin balance sheet. Just remember the bond outlives the shop: Ohio requires it for two years after you stop doing business in the state.

Ohio Revised Code 4728.03 requires a precious metals dealer applicant to show net worth of at least $10,000, or in place of that showing, obtain a surety bond of not less than $10,000 from a surety company authorized to do business in Ohio. The bond protects any person injured by a violation of Chapter 4728 and must be kept for at least two years after the dealer stops doing business in the state. The Division of Financial Institutions issues the license and manages it through NMLS.

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How to Apply for a Precious Metals Dealer ($10,000) (NMLS) Bond:

• Decide whether to demonstrate $10,000 of net worth or file the $10,000 surety bond.
• Have the business name and NMLS ID exactly as shown on the Ohio license application.
• Owner name, home address and Social Security number for the surety's credit review.
• Approve the quote and receive the executed bond from a surety authorized in Ohio.
• Submit the bond with the application to the Division of Financial Institutions, along with the $200 investigation fee and the license fee.
• Keep the bond in force for two years after you stop doing business in Ohio.

Detailed Information About the Ohio Precious Metals Dealer ($10,000) (NMLS) Bond:

Net worth or a bond

Ohio's licensing standard for precious metals dealers asks for sufficient financial responsibility and experience in the business of a precious metals dealer or a related business. Part of that is financial: ORC 4728.03 calls for net worth of at least $10,000, maintained while licensed. In place of that demonstration, the applicant may obtain a surety bond of at least $10,000.

The bond must be issued by a surety company authorized to do business in Ohio. It runs in favor of any person, and of the state for the benefit of any person, injured by a violation of Chapter 4728.

The two year tail

This is the part dealers miss. A licensee who chooses the bond must keep it for at least two years after the date the licensee ceases to conduct business in Ohio. Cancelling the bond the week the counter closes leaves the dealer out of compliance.

Who needs the license

ORC 4728.02 bars anyone from acting as a precious metals dealer without a license from the Division of Financial Institutions. Pawnbrokers licensed under Chapter 4727 may deal in precious metals without a separate dealer license, but remain subject to the same requirements. Section 4728.11 lists persons the chapter does not reach, including banks, credit unions and savings associations, some retail jewelers under a percentage test, and buyers of coins and ingots as numismatic objects rather than for their metal content.

Fees, term and NMLS

The division charges a nonrefundable initial investigation fee of $200 and a license fee set by the superintendent that may not exceed $300. A license expires on the last day of June following issuance, or annually on another date the superintendent sets. DFI lists the Ohio Precious Metals Dealer Act among the licenses applicants apply for and manage through NMLS. That is the only connection to NMLS. This is not a mortgage license.

A licensed dealer can also obtain a temporary exhibition permit to buy at a bona fide auction, convention, exhibition, fair or show, for no more than seven days per event. Recordkeeping and daily reporting to the local police department under sections 4728.06 and 4728.07 apply whether the dealer bonds or shows net worth.

Eligibility and Requirements for a Ohio Precious Metals Dealer ($10,000) (NMLS) Bond:

• Bond amount of not less than $10,000.
• Issued by a surety company authorized to do business in Ohio.
• Runs in favor of any person, and the State of Ohio for their benefit, injured by a violation of Chapter 4728.
• Maintained for at least two years after the licensee ceases business in Ohio.
• License expires on the last day of June following issuance unless the superintendent sets another annual date.

Ohio Precious Metals Dealer ($10,000) (NMLS) Bond FAQs:

Official and Additional Resources for the Ohio Precious Metals Dealer ($10,000) (NMLS) Bond: