Operating a pawn shop in the State of Indiana requires a background check of each owner, officer and manager.

A license is also required including:

  • $75,000 net worth and $50k in liquid assets, or $25k in assets and $25k of insurance on the personal property (pawns) plus a $25k bond to Indiana
  • 2 years of experience in a finance-related business
  • A business plan, history and any transactions that will be undertaken
  • A copy of a dba certificate (if applicable) from the Country Recorder for each location
  • A copy of the AFT license
  • A copy of the Certificate of Authority from the Secretary of State
  • A credit report for every principal
  • A licensing fee of $1,000
  • A list of states where business is conducted as a lender/broker with State Agency contact information
  • A Reference letter from a depository financial institution and two other letters
  • A resume of all principals
  • A State Police criminal-record report for every principal and employee
  • Agreement to keep satisfactory records and make them available to authorities
  • An additional $500 for each location
  • Samples of completed pawn ticket and bill of sale

Fingerprints are used to pull up FBI criminal records. Applicants may acquire a copy of their background check from the FBI website. Instructions can be found there to change, correct or update information as per Title 28, CFR, 16.34.

Buy Outright is a 'Disguised Pawn'

In 1993 the regulating authority ruled that any written or verbal agreement to sell an item back to the seller is a pawn in disguise and held (in IC 28-7-5-2, HEA 1245) that such transactions violate the Pawn Act and added an amendment:

"Pawn means lending money on the deposit or pledge of personal property, or purchasing personal property on the condition of selling the property back again at a stipulated price, with the condition indicated verbally, in a written agreement, or in any other form indicating that the seller may repurchase the personal property sold. For purposes of this chapter, "personal property" does not include general intangibles, accounts (including deposit accounts), chattel paper, commercial tort claims, documents, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction."

Indiana pawn shops fall under the regulations of the Office of Code Revision Indiana Legislative Services Agency under Title 28, Article 7, Chapter 5, (Indiana Pawn Law (IC 28-7-5 et seq.) - a department of the Indiana Department of Financial Institutions, 30 South Meridian Street, Suite 300, Indianapolis, IN 46204 317-232-3955 800-382-4880 dfilicensing@dfi.in.gov www.in.gov/dfi https://www.in.gov/dfi/files/Legislative_Summary_5-22-2014.pdf

Pawnbroker Pawn Shop Software

Pawnbroker Pawn Shop Software