Pawnbroker bond guarantees compliance with law and regulations governing the operation of pawnbrokers business in the state in which the pawnbroker operates. A pawn broker essentially offers their customers high interest, short-term loans with items of personal property used as collateral. The surety bond guarantees that the pawn broker will not sell the personal item before the end of the contractual period, that they will honor the sell back price and interest cost agreed upon, and that they will not charge more interest than statutorily allowed.
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