Detroit, MI — Pawnbroker Bond
Michigan’s pawnbroker law calls for a $3,000 bond to the licensing municipality before license issuance. Detroit’s posted uniform-bond guide also identifies $3,000 for pawnbrokers. Apply through The Southern Agency with the exact operator, premises and City-requested dates ready.
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- Recorded state
- Michigan
- Category
- Professional & occupational licenses
What this bond does
MCL 446.202 conditions the security on faithful performance of business duties and payment of costs and damages from violations of the act. The City approves the bond; buying it is not the same as receiving the pawnshop license.
- Who needs it
- Detroit operators making loans on deposited or pledged personal property, or purchasing property on an agreement to sell it back at a stipulated price. That statutory activity differs from assuming every ordinary secondhand sale is a pawn transaction.
- Who it protects
- Michigan law gives an aggrieved person a route to sue on the bond after recovering judgment against the pawnbroker and having execution returned wholly or partly unsatisfied. It is not an automatic refund or general inventory insurance.
Your bond option
This is the option on record for this bond.
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The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Michigan Legislature: current Pawnbrokers Act273 of1917 (opens in a new tab)Checked October 21, 2026
- City of Detroit: posted uniform surety bond and occupation guide (2019 revision) (opens in a new tab)Checked October 21, 2026
Have these ready
- Actual operator and designated Detroit premises.
- Current City pawnbroker request, $3,000 sum, and accepted form/citation.
- Required start and end dates, separately checked against City directions.
- Issued execution and City approval/submission instructions.
Questions about this bond
Does the bond automatically pay a customer complaint?
No. MCL 446.204 describes a claim route following judgment and a wholly or partly unsatisfied execution. It does not promise payment simply because a customer complains.
Can a different shop location use the same license?
The statute limits the license to its designated place and makes it nontransferable. Confirm the operator and premises with Detroit rather than reusing another location’s paperwork.
Does the uniform City form mean approval is complete?
No. The posted template includes approval as to form and execution, and the state statute requires City approval of the bond. Follow the current City process after reviewing the issued document.