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Hanover County, VA Business Licensing & Operations: Pawnbrokers (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Licensing authority
Hanover County Sheriff
Prerequisite
Circuit court order under Va. Code § 54.1-4001
Bond required
$50,000 surety bond or letter of credit
Pawnshop cap
No more than 3 licensed locations countywide
Record retention
Electronic transaction records kept 1 year

Summary

No one may operate as a pawnbroker in Hanover County without a license from the Sheriff under Code § 12.5-31, which requires a circuit court order, a bond, fingerprints and a background disclosure, in Hanover County outside the Town of Ashland.

These county ordinances apply to unincorporated areas of Hanover County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

(a)Required. ... No person shall engage in the business of a pawnbroker without first obtaining a license from the Sheriff.(b)Application; issuance. Prior to the issuance of the license, the applicant shall furnish to the Sheriff an order of the county circuit court issued pursuant to Code of Virginia, § 54.1-4001, as amended, authorizing the county to issue the license, and evidence of a bond meeting the requirements set out in section 12.5-36. ... (c)Penalty. Any person who violates the provisions of this section shall be guilty of a Class 1 misdemeanor. Each day's violation shall constitute a separate offense.

Full Breakdown

5, Article III of the Hanover County Code puts pawnbroker licensing under the Sheriff's Office rather than a business-license office. 5-31, the applicant must first obtain an order from the Hanover County Circuit Court under Va. 5-36. The Sheriff's application form requires the applicant's full name, aliases, address, date of birth, driver's license number, sex, fingerprints and photograph, the employer's name and contact information, a sworn statement disclosing any criminal convictions or pending charges, and the proposed business location. 5-32 caps the county at three licensed pawnshops at any time; the circuit court will not authorize a new license once that cap is reached unless the number drops below three, though a buyer of an existing licensed pawnshop can obtain a new license for the same location if not convicted of a felony or crime of moral turpitude in the past ten years.

5-34. 5-39 at 10 percent per month on loans of $25 or less, 7 percent on loans between $25 and $100, and 5 percent on loans of $100 or more.

Violations & Fines

Section 12.5-31(c) makes operating without a license a Class 1 misdemeanor, with each day of continued violation a separate offense. Section 12.5-30 makes most other violations of the pawnbroker article a Class 4 misdemeanor, and the court may revoke or suspend a license for a second or subsequent offense. Violations also count as prohibited practices under the Virginia Consumer Protection Act, Va. Code § 59.1-196 et seq.

Frequently Asked Questions

Who issues pawnbroker licenses in Hanover County?
The Sheriff issues the license under § 12.5-31, but only after the applicant obtains an order from the Hanover County Circuit Court under Va. Code § 54.1-4001 authorizing the county to issue it, and after posting the $50,000 bond required by § 12.5-36.
How many pawnshops can operate in Hanover County?
Section 12.5-32 caps the county at three licensed pawnshop locations at a time. The circuit court cannot authorize a new license once the commissioner of revenue certifies the cap has been reached, unless the number is later reduced below three.
What interest can a Hanover County pawnbroker charge?
Section 12.5-39 sets maximum monthly interest at 10 percent on loans of $25 or less, 7 percent on loans over $25 but under $100, and 5 percent on loans of $100 or more, and forbids splitting a loan to raise the effective rate.
What happens if a pawnbroker operates without a license?
Section 12.5-31(c) makes it a Class 1 misdemeanor, with each day of unlicensed operation a separate offense, and Section 12.5-30 lets the court suspend or revoke the license and treat the violation as a prohibited practice under the Virginia Consumer Protection Act.

Sources & Official References

Other rules in Hanover County

All Hanover County rules

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