                                 CODE OF VIRGINIA

BOND OR LETTER OF CREDIT REQUIRED OF DEALERS WHEN PERMIT OBTAINED (§ 54.1-4106)

A. Every dealer shall secure a permit as required by &#xA7; 54.1-4108, and each
dealer at the time of obtaining such permit shall enter into a recognizance to
the Commonwealth secured by a corporate surety authorized to do business in this
Commonwealth, in the penal sum of $10,000, conditioned upon due observance of
the terms of this chapter. In lieu of a bond, a dealer may cause to be issued by
a bank authorized to do business in the Commonwealth a letter of credit in favor
of the Commonwealth for $10,000.

B. If any county, city, or town has an ordinance which regulates the purchase
and sale of precious metals and gems pursuant to &#xA7; 54.1-4111, such bond or
letter of credit shall be executed in favor of the local governing body.

C. A single bond upon an employer or principal may be written or a single letter
of credit issued to cover all employees and all transactions occurring at a
single location.

HISTORY: 1981, c. 581, § 54-859.21; 1988, c. 765.