senate Bill S4115A

2013-2014 Legislative Session

Relates to collateral loan brokers; repealer

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 11, 2014 print number 4115b
amend (t) and recommit to consumer protection
Jan 08, 2014 referred to consumer protection
Jun 14, 2013 print number 4115a
amend (t) and recommit to consumer protection
Mar 08, 2013 referred to consumer protection

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S4115 - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd §46, Gen Bus L
Versions Introduced in 2013-2014 Legislative Session:
A6093

S4115 - Bill Texts

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Relates to collateral loan brokers.

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BILL NUMBER:S4115

TITLE OF BILL: An act to amend the general business law, the banking
law, the penal law and the lien law, in relation to enacting the "New
York state pawnbroking act" and providing for the licensure and
operation of pawnbrokers and repealing article 5 of the general
business law relating to collateral loans

PURPOSE OF BILL: The purpose of the bill is to update New York
statutes currently regulating what are identified as collateral loan
brokers, by enacting a rigorous licensure, regulatory and enforceable
scheme of law applicable to what everyone commonly refers to as
pawnbrokers. By enacting the strict measures contained herein, the
state recognizes its moral responsibility to those who absent the
existence of pawnbrokers, may have no access to credit when absolutely
necessary.

SUMMARY OF PROVISIONS: OF BILL: The New York Pawnbroking Act enacted
by the provisions of this bill provides for an extensive revision of
the provisions of New York law as it relates to the conduct of
business conducted by pawnshop, which in existing law references
collateral loan givers. It requires those conducting such a pawn
business to obtain an annual license, and imposes detailed security
requirements upon those who hold themselves out as pawnbrokers. Each
pawn shop must maintain a net worth of at least $50,000 or file
security in the form of a bond, letter of credit or certificate of
deposit in the amount of $10,000 and further authorizes licensing fees
and imposes penalties for non-compliance with the law. Enforcement of
the law would be under the jurisdiction of the State attorney General,
and the bill permits local law enforcement leeway to also act upon
violations.

Section 1 of the bill repeals the existing antiquated Article 5 of the
General Business Law, and adds a new article 5 relating to pawnbrokers
as commonly identified.

Sections 2, 3, 4 and 5 of the bill amend section 340 of the banking
law, sections 165.45 and 165.55 of the penal law, and section 202-a of
the lien law respectfully to delete old references to "collateral loan
brokers" and update such sections to state they are still applicable
to pawnbrokers.

Section 6 of the bill is the effective date.

JUSTIFICATION: The provisions of the bill are two folded. First by
enacting the strict licensure provisions contained in the new language
added to the general business law, the state can insure to the public
that only responsible and able entities are carrying the business of
pawning; that violations of the duties pawnbrokers owe to the public
with whom the deal are severely dealt with, and that the best
interests of the state are realized by a systematic and dependable
enforcement procedure. Secondly, the statutes as altered in the bill
recognize and address the need to modernize the oversight of the
business of pawnbroking so that the public can be confident with the
business with whom they are partnering.


LEGISLATIVE HISTORY: This is a new bill for the 2013 Session

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Considerable
revenue will be realized to offset any increase in enforcement and
regulatory requirements to the benefit of the state.

EFFECTIVE DATE: This act shall take effect on the first day of
November next succeeding the date upon which it shall have become a
law, except that any rules and regulations necessary for the operation
and enforcement of this act may be implemented immediately.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4115

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 8, 2013
                               ___________

Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, the banking law, the penal law
  and the lien law, in relation to enacting the "New  York  state  pawn-
  broking  act"  and  providing for the licensure and operation of pawn-
  brokers and repealing article 5 of the general business  law  relating
  to collateral loans

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 5 of the general business law is REPEALED and a new
article 5 is added to read as follows:
                                ARTICLE 5
                     NEW YORK STATE PAWNBROKING ACT
SECTION 40.   SHORT TITLE.
        41.   DEFINITIONS.
        42.   LICENSE REQUIRED.
        43.   ELIGIBILITY FOR LICENSE.
        44.   APPLICATION FOR LICENSE.
        45.   SUSPENSION, REVOCATION AND SURRENDER OF LICENSE; NET WORTH
                REQUIREMENT.
        46.   ORDERS IMPOSING PENALTIES.
        47.   PAWNBROKER TRANSACTION FORM.
        48.   RECORDKEEPING; REPORTING; HOLD PERIOD.
        49.   PLEDGED GOODS NOT REDEEMED.
        50.   PAWN SERVICE CHARGES.
        51.   PROHIBITED ACTS.
        52.   RIGHT TO REDEEM; LOST PAWNBROKER TRANSACTION FORM.
        53.   PAWNBROKER'S LIEN.
        54.   CLAIMS AGAINST PURCHASED GOODS OR PLEDGED  GOODS  HELD  BY
                PAWNBROKERS.
        55.   HOLD ORDERS; ISSUANCE; REQUIRED INFORMATION; PROCEDURES.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09597-01-3

S. 4115                             2

        55-A. CRIMINAL PENALTIES.
        55-B. INJUNCTIONS.
        55-C. RECORDS OF THE DIVISION OF CRIMINAL JUSTICE SERVICES.
        55-D. CONFLICTING LOCAL LAWS OR ORDINANCES.
        55-E. RULES AND REGULATIONS.
  S 40. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE
"NEW YORK STATE PAWNBROKING ACT."
  S  41.  DEFINITIONS.  FOR PURPOSES OF THIS ARTICLE THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "AGENCY" MEANS THE DEPARTMENT OF LAW.
  2. "APPROPRIATE LAW ENFORCEMENT OFFICIAL" MEANS  THE  SHERIFF  OF  THE
COUNTY  IN WHICH A PAWNSHOP IS LOCATED, OR IF A PAWNSHOP IS LOCATED IN A
CITY, THE POLICE CHIEF OF THE CITY.
  3. "CLAIMANT" MEANS A PERSON WHO CLAIMS THAT HIS OR HER  PROPERTY  WAS
MISAPPROPRIATED.
  4.  "CONVEYING CUSTOMER" MEANS A PERSON WHO DELIVERS PROPERTY INTO THE
CUSTODY OF A PAWNBROKER, EITHER BY PAWN, SALE, CONSIGNMENT, OR TRADE.
  5. "IDENTIFICATION" MEANS A GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICA-
TION OR AN ELECTRONIC IMAGE TAKEN FROM A GOVERNMENT-ISSUED  PHOTOGRAPHIC
IDENTIFICATION.
  6.  "MISAPPROPRIATED" MEANS STOLEN, EMBEZZLED, CONVERTED, OR OTHERWISE
WRONGFULLY APPROPRIATED AGAINST THE WILL OF THE RIGHTFUL OWNER.
  7. "NET WORTH" MEANS TOTAL ASSETS LESS TOTAL LIABILITIES.
  8. "PAWN" MEANS ANY ADVANCEMENT OF FUNDS ON THE  SECURITY  OF  PLEDGED
GOODS  ON CONDITION THAT THE PLEDGED GOODS ARE LEFT IN THE POSSESSION OF
THE PAWNBROKER FOR THE DURATION OF THE PAWN AND MAY BE REDEEMED  BY  THE
PLEDGOR ON THE TERMS AND CONDITIONS CONTAINED IN THIS SECTION.
  9.  "PAWNBROKER"  MEANS  ANY  PERSON WHO IS ENGAGED IN THE BUSINESS OF
MAKING PAWNS; WHO MAKES A PUBLIC DISPLAY  CONTAINING  THE  TERM  "PAWN,"
"PAWNBROKER,"  OR  "PAWNSHOP" OR ANY DERIVATIVE THEREOF; OR WHO PUBLICLY
DISPLAYS A SIGN OR SYMBOL HISTORICALLY IDENTIFIED WITH  PAWNS.  A  PAWN-
BROKER  MAY  ALSO  ENGAGE  IN  THE  BUSINESS  OF  PURCHASING GOODS WHICH
INCLUDES CONSIGNMENT AND TRADE.
  10. "PAWNBROKER TRANSACTION FORM" MEANS  THE  INSTRUMENT  ON  WHICH  A
PAWNBROKER RECORDS PAWNS AND PURCHASES.
  11.  "PAWN SERVICE CHARGE" MEANS A CHARGE FOR INVESTIGATING THE TITLE,
STORAGE, AND INSURING OF THE SECURITY; CLOSING THE  TRANSACTION;  MAKING
DAILY  REPORTS  TO  APPROPRIATE  LAW ENFORCEMENT OFFICIALS; EXPENSES AND
LOSSES; AND ALL OTHER SERVICES.
  12. "PAWNSHOP" MEANS THE LOCATION AT WHICH A PAWNBROKER CONDUCTS BUSI-
NESS.
  13. "PERMITTED VENDOR" MEANS A VENDOR WHO FURNISHES A PAWNBROKER  WITH
AN  INVOICE  SPECIFYING  THE  VENDOR'S NAME AND ADDRESS, THE DATE OF THE
SALE, A DESCRIPTION OF THE ITEMS SOLD, AND THE SALES PRICE, AND WHO  HAS
AN  ESTABLISHED PLACE OF BUSINESS, OR, IN THE CASE OF A SECONDHAND DEAL-
ER, HAS REPRESENTED IN WRITING THAT SUCH DEALER HAS  COMPLIED  WITH  ALL
APPLICABLE RECORDKEEPING, REPORTING, AND RETENTION REQUIREMENTS PERTAIN-
ING TO GOODS SOLD OR OTHERWISE DELIVERED TO A PAWNBROKER.
  14.  "PERSON"  MEANS  AN  INDIVIDUAL,  PARTNERSHIP, CORPORATION, JOINT
VENTURE, TRUST, ASSOCIATION, OR OTHER LEGAL ENTITY.
  15. "PLEDGED GOODS" MEANS TANGIBLE PERSONAL PROPERTY THAT IS DEPOSITED
WITH, OR OTHERWISE DELIVERED INTO THE  POSSESSION  OF  A  PAWNBROKER  IN
CONNECTION  WITH  A PAWN. "PLEDGED GOODS" DOES NOT INCLUDE TITLES OR ANY
OTHER FORM OF WRITTEN SECURITY IN TANGIBLE PROPERTY IN  LIEU  OF  ACTUAL
PHYSICAL  POSSESSION,  INCLUDING,  BUT NOT LIMITED TO, CHOSES IN ACTION,
SECURITIES, PRINTED EVIDENCE OF INDEBTEDNESS, OR CERTIFICATES  OF  TITLE

S. 4115                             3

AND  OTHER  INSTRUMENTS  EVIDENCING TITLE TO SEPARATE ITEMS OF PROPERTY,
INCLUDING MOTOR VEHICLES. FOR PURPOSES OF FEDERAL AND  STATE  BANKRUPTCY
LAWS,  A  PLEDGOR'S  INTEREST  IN  HIS  OR  HER PLEDGED GOODS DURING THE
PENDENCY OF A PAWN IS A RIGHT OF REDEMPTION ONLY.
  16.  "PLEDGOR" MEANS AN INDIVIDUAL WHO DELIVERS PLEDGED GOODS INTO THE
POSSESSION OF A PAWNBROKER IN CONNECTION WITH A PAWN.
  17. "PURCHASE" MEANS THE TRANSFER AND DELIVERY OF GOODS, BY  A  PERSON
OTHER THAN A PERMITTED VENDOR, TO A PAWNBROKER BY ACQUISITION FOR VALUE,
CONSIGNMENT, OR TRADE FOR OTHER GOODS.
  18.  "AMOUNT  FINANCED"  IS  USED  INTERCHANGEABLY TO MEAN THE SAME AS
"AMOUNT OF MONEY ADVANCED" OR "PRINCIPAL AMOUNT".
  19. "DEFAULT DATE" MEANS THAT DATE UPON WHICH THE PLEDGOR'S  RIGHT  OF
REDEMPTION EXPIRES AND ABSOLUTE RIGHT, TITLE, AND INTEREST IN AND TO THE
PLEDGED  GOODS  SHALL  VEST IN AND SHALL BE DEEMED CONVEYED TO THE PAWN-
BROKER BY OPERATION OF LAW.
  20. "BENEFICIAL OWNER" MEANS A PERSON WHO DOES NOT HAVE TITLE TO PROP-
ERTY BUT HAS RIGHTS IN THE PROPERTY WHICH ARE  THE  NORMAL  INCIDENT  OF
OWNING THE PROPERTY.
  21.  "OPERATOR"  MEANS  A  PERSON  WHO  HAS CHARGE OF A CORPORATION OR
COMPANY AND HAS CONTROL OF ITS BUSINESS, OR  OF  ITS  BRANCH  ESTABLISH-
MENTS,  DIVISIONS,  OR  DEPARTMENTS,  AND  WHO  IS VESTED WITH A CERTAIN
AMOUNT OF DISCRETION AND INDEPENDENT JUDGMENT.
  S 42. LICENSE REQUIRED. 1. A PERSON MAY NOT ENGAGE IN  BUSINESS  AS  A
PAWNBROKER UNLESS THE PERSON HAS A VALID LICENSE ISSUED BY THE AGENCY. A
SEPARATE  LICENSE  IS  REQUIRED FOR EACH PAWNSHOP. THE AGENCY MUST ISSUE
MORE THAN ONE LICENSE TO A PERSON  IF  THAT  PERSON  COMPLIES  WITH  THE
REQUIREMENTS FOR EACH LICENSE.
  2.  A  LICENSEE  WHO SEEKS TO MOVE A PAWNSHOP TO ANOTHER LOCATION MUST
GIVE WRITTEN NOTICE TO THE AGENCY AT LEAST THIRTY DAYS BEFORE  THE  MOVE
AND  THE AGENCY MUST AMEND THE LICENSE TO INDICATE THE NEW LOCATION. THE
LICENSEE MUST ALSO GIVE SUCH  WRITTEN  NOTICE  TO  THE  APPROPRIATE  LAW
ENFORCEMENT OFFICIAL.
  3. EACH LICENSE IS VALID FOR A PERIOD OF ONE YEAR UNLESS IT IS EARLIER
RELINQUISHED, SUSPENDED, OR REVOKED. EACH LICENSE SHALL BE RENEWED ANNU-
ALLY, AND EACH LICENSEE SHALL, INITIALLY AND ANNUALLY THEREAFTER, PAY TO
THE AGENCY A LICENSE FEE OF THREE HUNDRED DOLLARS FOR EACH LICENSE HELD.
  4. THE AGENCY MAY ISSUE A TEMPORARY PAWNBROKER'S LICENSE FOR THE OPER-
ATION OF A PAWNSHOP EITHER UPON RECEIPT OF AN APPLICATION TO TRANSFER AN
EXISTING LICENSE FROM ONE PERSON TO ANOTHER OR UPON RECEIPT OF AN APPLI-
CATION  FOR  A LICENSE INVOLVING PRINCIPALS AND OWNERS THAT ARE SUBSTAN-
TIALLY IDENTICAL TO  THOSE  OF  THE  EXISTING  LICENSEE.  THE  TEMPORARY
LICENSE  IS EFFECTIVE UNTIL THE PERMANENT LICENSE IS ISSUED OR DENIED BY
THE AGENCY.
  5. A PERSON MUST APPLY TO THE AGENCY FOR A NEW LICENSE OR FOR A TEMPO-
RARY LICENSE UPON ANY CHANGE, DIRECTLY OR BENEFICIALLY, IN THE OWNERSHIP
OF ANY PAWNSHOP. AN APPLICATION FOR  A  LICENSE  OR  AN  APPLICATION  TO
TRANSFER  AN  EXISTING LICENSE IS NOT REQUIRED UPON ANY CHANGE, DIRECTLY
OR BENEFICIALLY, IN THE OWNERSHIP OF A PAWNSHOP IF ONE OR  MORE  HOLDERS
OF  AT  LEAST  NINETY  PERCENT OF THE OUTSTANDING EQUITY INTEREST OF THE
PAWNSHOP BEFORE THE CHANGE IN OWNERSHIP CONTINUE TO HOLD AT LEAST NINETY
PERCENT OF THE OUTSTANDING EQUITY INTEREST AFTER THE  CHANGE  IN  OWNER-
SHIP.
  6. ANY PERSON APPLYING FOR OR RENEWING A LOCAL OCCUPATIONAL LICENSE TO
ENGAGE  IN  BUSINESS AS A PAWNBROKER MUST EXHIBIT A CURRENT LICENSE FROM
THE AGENCY BEFORE THE LOCAL BUSINESS TAX RECEIPT MAY BE ISSUED OR  REIS-
SUED.

S. 4115                             4

  S  43.  ELIGIBILITY  FOR LICENSE. 1. TO BE ELIGIBLE FOR A PAWNBROKER'S
LICENSE, AN APPLICANT MUST:
  (A) BE OF GOOD MORAL CHARACTER;
  (B)  HAVE  A NET WORTH OF AT LEAST FIFTY THOUSAND DOLLARS OR FILE WITH
THE AGENCY A BOND ISSUED BY A SURETY COMPANY QUALIFIED TO DO BUSINESS IN
THIS STATE IN THE AMOUNT OF TEN THOUSAND DOLLARS FOR  EACH  LICENSE.  IN
LIEU OF THE BOND REQUIRED IN THIS SECTION, THE APPLICANT MAY ESTABLISH A
CERTIFICATE  OF DEPOSIT OR AN IRREVOCABLE LETTER OF CREDIT IN A NEW YORK
BANKING INSTITUTION IN THE  AMOUNT  OF  THE  BOND.  THE  ORIGINAL  BOND,
CERTIFICATE  OF  DEPOSIT,  OR  LETTER  OF CREDIT SHALL BE FILED WITH THE
AGENCY, AND THE AGENCY SHALL BE THE BENEFICIARY TO SAID DOCUMENT.    THE
BOND,  CERTIFICATE  OF DEPOSIT, OR LETTER OF CREDIT SHALL BE IN FAVOR OF
THE AGENCY FOR THE USE AND BENEFIT OF ANY CONSUMER WHO IS INJURED BY THE
FRAUD, MISREPRESENTATION, BREACH  OF  CONTRACT,  FINANCIAL  FAILURE,  OR
VIOLATION  OF  ANY  PROVISION  OF  THIS SECTION BY THE PAWNBROKER.  SUCH
LIABILITY MAY BE ENFORCED EITHER  BY  PROCEEDING  IN  AN  ADMINISTRATIVE
ACTION  OR  BY  FILING  A  JUDICIAL  SUIT AT LAW IN A COURT OF COMPETENT
JURISDICTION.  HOWEVER, IN SUCH COURT SUIT,  THE  BOND,  CERTIFICATE  OF
DEPOSIT,  OR LETTER OF CREDIT POSTED WITH THE AGENCY SHALL NOT BE AMENA-
BLE OR SUBJECT TO ANY JUDGMENT OR OTHER LEGAL PROCESS ISSUING OUT OF  OR
FROM  SUCH COURT IN CONNECTION WITH SUCH LAWSUIT, BUT SUCH BOND, CERTIF-
ICATE OF DEPOSIT, OR LETTER OF CREDIT SHALL BE AMENABLE TO AND ENFORCEA-
BLE ONLY BY AND THROUGH ADMINISTRATIVE PROCEEDINGS BEFORE THE AGENCY. IT
IS THE INTENT OF THE LEGISLATURE THAT SUCH BOND, CERTIFICATE OF DEPOSIT,
OR LETTER OF CREDIT SHALL BE APPLICABLE AND LIABLE ONLY FOR THE  PAYMENT
OF CLAIMS DULY ADJUDICATED BY ORDER OF THE AGENCY. THE BOND, CERTIFICATE
OF  DEPOSIT, OR LETTER OF CREDIT SHALL BE PAYABLE ON A PRO RATA BASIS AS
DETERMINED BY THE AGENCY, BUT THE AGGREGATE AMOUNT MAY  NOT  EXCEED  THE
AMOUNT OF THE BOND, CERTIFICATE OF DEPOSIT, OR LETTER OF CREDIT;
  (C)  NOT HAVE BEEN CONVICTED OF, OR FOUND GUILTY OF, OR PLED GUILTY OR
NOLO CONTENDERE TO, OR NOT HAVE BEEN INCARCERATED WITHIN  THE  LAST  TEN
YEARS AS A RESULT OF HAVING PREVIOUSLY BEEN CONVICTED OF, OR FOUND GUIL-
TY OF, OR PLED GUILTY OR NOLO CONTENDERE TO, REGARDLESS OF ADJUDICATION,
A  FELONY  WITHIN  THE  LAST TEN YEARS AND NOT BE ACTING AS A BENEFICIAL
OWNER FOR SOMEONE WHO HAS BEEN CONVICTED OF, OR FOUND GUILTY OF, OR PLED
GUILTY OR NOLO CONTENDERE TO, REGARDLESS OF ADJUDICATION, A FELONY WITH-
IN THE LAST TEN YEARS; AND
  (D) NOT HAVE BEEN CONVICTED OF, OR FOUND GUILTY OF, OR PLED GUILTY  OR
NOLO  CONTENDERE  TO,  OR NOT HAVE BEEN INCARCERATED WITHIN THE LAST TEN
YEARS AS A RESULT OF HAVING PREVIOUSLY BEEN CONVICTED OF, OR FOUND GUIL-
TY OF, OR PLED GUILTY OR NOLO CONTENDERE TO, REGARDLESS OF ADJUDICATION,
A CRIME THAT  INVOLVES  THEFT,  LARCENY,  DEALING  IN  STOLEN  PROPERTY,
RECEIVING STOLEN PROPERTY, BURGLARY, EMBEZZLEMENT, OBTAINING PROPERTY BY
FALSE PRETENSES, POSSESSION OF ALTERED PROPERTY, OR ANY OTHER FRAUDULENT
OR  DISHONEST  DEALING WITHIN THE LAST TEN YEARS, AND NOT BE ACTING AS A
BENEFICIAL OWNER FOR SOMEONE WHO HAS BEEN CONVICTED OF, OR FOUND  GUILTY
OF, OR PLED GUILTY OR NOLO CONTENDERE TO, OR HAS BEEN INCARCERATED WITH-
IN  THE  LAST  TEN YEARS AS A RESULT OF HAVING PREVIOUSLY BEEN CONVICTED
OF, OR FOUND GUILTY OF, OR PLED GUILTY OR NOLO CONTENDERE TO, REGARDLESS
OF ADJUDICATION, A CRIME THAT INVOLVES THEFT, LARCENY, DEALING IN STOLEN
PROPERTY, RECEIVING STOLEN PROPERTY, BURGLARY,  EMBEZZLEMENT,  OBTAINING
PROPERTY  BY  FALSE  PRETENSES,  POSSESSION  OF ALTERED PROPERTY, OR ANY
OTHER FRAUDULENT OR DISHONEST DEALING WITHIN THE LAST TEN YEARS.
  2. ANY APPLICANT CLAIMING TO  HAVE  A  NET  WORTH  OF  FIFTY  THOUSAND
DOLLARS  OR MORE SHALL FILE WITH THE AGENCY, AT THE TIME OF APPLYING FOR
A LICENSE, THE FOLLOWING DOCUMENTATION:

S. 4115                             5

  (A) A CURRENT FINANCIAL STATEMENT PREPARED BY  A  NEW  YORK  CERTIFIED
PUBLIC ACCOUNTANT; OR
  (B)  AN  AFFIDAVIT STATING THE APPLICANT'S NET WORTH IS AT LEAST FIFTY
THOUSAND DOLLARS, ACCOMPANIED BY SUPPORTING DOCUMENTATION; OR
  (C) IF THE APPLICANT IS A CORPORATION, A COPY OF THE APPLICANT'S  MOST
RECENTLY  FILED FEDERAL TAX RETURN. IF THE AGENCY CANNOT VERIFY THAT THE
APPLICANT MEETS THE NET WORTH REQUIREMENT FOR A LICENSE, THE AGENCY  MAY
REQUIRE  A  FINDING,  INCLUDING  THE  PRESENTATION  OF A CURRENT BALANCE
SHEET, BY AN ACCOUNTING FIRM OR INDIVIDUAL HOLDING A PERMIT TO  PRACTICE
PUBLIC  ACCOUNTING  IN  THIS STATE, THAT THE ACCOUNTANT HAS REVIEWED THE
BOOKS AND RECORDS OF THE APPLICANT AND THAT THE APPLICANT MEETS THE  NET
WORTH REQUIREMENT.
  3.  IF  AN  APPLICANT FOR A PAWNBROKER'S LICENSE IS NOT AN INDIVIDUAL,
THE ELIGIBILITY REQUIREMENTS OF THIS SUBSECTION, OTHER THAN THE REQUIRE-
MENTS OF THIS SECTION, APPLY TO EACH OPERATOR OF  THE  PAWNSHOP  AND  TO
EACH DIRECT OR BENEFICIAL OWNER OF AT LEAST TEN PERCENT OF THE OUTSTAND-
ING  EQUITY  INTEREST  OF THE PAWNSHOP AND, IF THE APPLICANT IS A CORPO-
RATION, TO EACH OFFICER AND DIRECTOR OF THE CORPORATION.
  S 44. APPLICATION FOR LICENSE. 1. AN APPLICATION  FOR  A  PAWNBROKER'S
LICENSE,  FOR  THE  TRANSFER OF AN EXISTING PAWNBROKER'S LICENSE, OR FOR
THE APPROVAL OF A CHANGE IN THE OWNERSHIP OF A LICENSEE'S PAWNSHOP  MUST
BE UNDER OATH AND MUST STATE THE FULL NAME AND PLACE OF RESIDENCE OF THE
APPLICANT,  THE  PLACE  WHERE THE BUSINESS IS TO BE CONDUCTED, AND OTHER
RELEVANT INFORMATION REQUIRED BY THE AGENCY.
  2. IF THE APPLICANT IS NOT AN INDIVIDUAL, THE APPLICANT MUST STATE THE
FULL NAME AND ADDRESS OF EACH DIRECT OR BENEFICIAL OWNER OF AT  LEAST  A
TEN PERCENT EQUITY INTEREST IN SUCH PERSON. IF THE APPLICANT IS A CORPO-
RATION,  THE  APPLICATION  MUST  ALSO STATE THE FULL NAME AND ADDRESS OF
EACH OFFICER AND DIRECTOR.
  3. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF  SUBDIVISION  ONE  OF
THIS  SECTION,  THE APPLICATION NEED NOT STATE THE FULL NAME AND ADDRESS
OF EACH OFFICER, DIRECTOR, AND SHAREHOLDER IF  THE  APPLICANT  IS  OWNED
DIRECTLY  OR  BENEFICIALLY  BY A PERSON THAT AS AN ISSUER HAS A CLASS OF
SECURITIES REGISTERED UNDER SECTION TWELVE OF  THE  SECURITIES  EXCHANGE
ACT  OF 1934, OR UNDER SECTION 15(D) THEREOF, AND IS AN ISSUER OF REGIS-
TERED SECURITIES REQUIRED  TO  FILE  REPORTS  WITH  THE  SECURITIES  AND
EXCHANGE COMMISSION AND IF THE PERSON FILES WITH THE AGENCY THE INFORMA-
TION,  DOCUMENTS,  AND  REPORTS REQUIRED TO BE FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION.
  4. EACH INITIAL APPLICATION FOR A LICENSE MUST  BE  ACCOMPANIED  BY  A
COMPLETE  SET  OF  FINGERPRINTS  TAKEN  BY AN AUTHORIZED LAW ENFORCEMENT
OFFICER, THREE HUNDRED DOLLARS FOR THE FIRST YEAR'S LICENSE FEE, AND THE
ACTUAL COST TO THE AGENCY  FOR  FINGERPRINT  ANALYSIS  FOR  EACH  PERSON
SUBJECT  TO  THE  ELIGIBILITY  REQUIREMENTS. THE AGENCY SHALL SUBMIT THE
FINGERPRINTS TO THE DIVISION OF  CRIMINAL  JUSTICE  SERVICES  FOR  STATE
PROCESSING,  AND  SUCH  DIVISION  SHALL  FORWARD THE FINGERPRINTS TO THE
FEDERAL BUREAU OF INVESTIGATION FOR A NATIONAL CRIMINAL  HISTORY  CHECK.
THESE FEES AND COSTS ARE NOT REFUNDABLE.
  5. WHEN THE APPLICATION AND THE REQUIRED FEES ARE RECEIVED, THE AGENCY
SHALL  INVESTIGATE  THE  FACTS,  APPROVE  THE  APPLICATION,  AND ISSUE A
LICENSE TO THE APPLICANT  IF  THE  AGENCY  FINDS  THAT  THE  ELIGIBILITY
REQUIREMENTS  FOR  THE LICENSE ARE SATISFIED. THE LICENSE MUST BE PROMI-
NENTLY DISPLAYED AT THE FRONT DESK OR COUNTER AT EACH PAWNSHOP.
  6. FEES AND FINES COLLECTED UNDER THIS SECTION BY THE AGENCY SHALL  BE
DEPOSITED INTO THE GENERAL FUND OF THE STATE.

S. 4115                             6

  S  45.  SUSPENSION,  REVOCATION  AND  SURRENDER  OF LICENSE; NET WORTH
REQUIREMENT. 1. THE AGENCY MAY, AFTER NOTICE AND A HEARING,  SUSPEND  OR
REVOKE ANY LICENSE UPON A FINDING THAT:
  (A)  THE  LICENSEE,  EITHER  KNOWINGLY  OR WITHOUT THE EXERCISE OF DUE
CARE, HAS VIOLATED THIS SECTION OR HAS AIDED OR CONSPIRED  WITH  ANOTHER
PERSON TO VIOLATE THIS SECTION;
  (B)  A  CONDITION  EXISTS  THAT,  HAD  IT EXISTED WHEN THE LICENSE WAS
ISSUED, WOULD HAVE JUSTIFIED THE AGENCY'S REFUSAL TO ISSUE A LICENSE;
  (C) THE LICENSEE OR ITS APPLICABLE AGENTS OR EMPLOYEES WHO ARE SUBJECT
TO THE ELIGIBILITY REQUIREMENTS NO LONGER MEET THE ELIGIBILITY  REQUIRE-
MENTS TO HOLD A PAWNBROKER'S LICENSE; OR
  (D) THE LICENSEE HAS THROUGH GROSS NEGLIGENCE OR WILLFUL NONCOMPLIANCE
FAILED TO COMPLY WITH A WRITTEN HOLD ORDER.
  2. THE AGENCY MAY CONDITIONALLY LICENSE OR PLACE ON PROBATION A PERSON
WHOSE  LICENSE  HAS  BEEN  SUSPENDED  OR  MAY REPRIMAND A LICENSEE FOR A
VIOLATION OF THIS SECTION.
  3. THE MANNER OF GIVING NOTICE AND CONDUCTING A HEARING,  AS  REQUIRED
BY  PARAGRAPH  (A)  OF  SUBDIVISION ONE OF THIS SECTION, MUST CONFORM TO
PROVISIONS OF THE STATE ADMINISTRATIVE PROCEDURE ACT.
  4. ANY LICENSEE MAY SURRENDER A LICENSE BY DELIVERING IT, BY CERTIFIED
OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, TO THE AGENCY WITH WRITTEN
NOTICE OF ITS SURRENDER. THE SURRENDER OF A LICENSE DOES NOT AFFECT  THE
CIVIL  OR  CRIMINAL  LIABILITY OF THE LICENSEE FOR ACTS COMMITTED BEFORE
THE SURRENDER OF THE LICENSE.
  5. THE REVOCATION, SUSPENSION, OR SURRENDER  OF  A  LICENSE  DOES  NOT
IMPAIR  OR  AFFECT  THE  OBLIGATION  OF  ANY PREEXISTING LAWFUL CONTRACT
BETWEEN THE LICENSEE AND ANY PLEDGOR. ANY PAWN  TRANSACTION  MADE  BY  A
PERSON  WITHOUT  BENEFIT  OF  A  LICENSE  IS VOIDABLE, IN WHICH CASE THE
PERSON FORFEITS THE RIGHT TO COLLECT ANY MONEYS, INCLUDING PRINCIPAL AND
ANY CHARGES, FROM THE PLEDGOR IN CONNECTION WITH SUCH TRANSACTION AND IS
OBLIGATED TO RETURN TO THE PLEDGOR THE PLEDGED GOODS IN CONNECTION  WITH
SUCH TRANSACTION.
  6. THE AGENCY MAY REINSTATE A SUSPENDED LICENSE OR ISSUE A NEW LICENSE
TO A PERSON WHOSE LICENSE HAS BEEN REVOKED, IF AFTER A HEARING IT DETER-
MINES  THAT  NO  FACT OR CONDITION THEN EXISTS THAT WOULD HAVE JUSTIFIED
THE AGENCY IN ORIGINALLY REFUSING TO ISSUE A LICENSE.
  7. EACH LICENSEE MUST MAINTAIN A NET WORTH OF FIFTY  THOUSAND  DOLLARS
OR THE BOND SPECIFIED IN SECTION FORTY-THREE OF THIS ARTICLE.
  S  46.  ORDERS  IMPOSING  PENALTIES.  1. THE AGENCY MAY ENTER AN ORDER
IMPOSING ONE OR MORE OF THE PENALTIES SET FORTH IN  SUBDIVISION  TWO  OF
THIS SECTION IF THE AGENCY FINDS THAT A PAWNBROKER:
  (A)  VIOLATED OR IS OPERATING IN VIOLATION OF ANY OF THE PROVISIONS OF
THIS SECTION OR OF THE RULES ADOPTED OR ORDERS ISSUED THEREUNDER;
  (B) MADE A MATERIAL FALSE STATEMENT IN ANY APPLICATION,  DOCUMENT,  OR
RECORD REQUIRED TO BE SUBMITTED OR RETAINED UNDER THIS SECTION;
  (C) REFUSED OR FAILED, OR ANY OF ITS PRINCIPAL OFFICERS HAS REFUSED OR
FAILED, AFTER NOTICE, TO PRODUCE ANY DOCUMENT OR RECORDS OR DISCLOSE ANY
INFORMATION  REQUIRED  TO BE PRODUCED OR DISCLOSED UNDER THIS SECTION OR
THE RULES OF THE AGENCY;
  (D) MADE A MATERIAL FALSE STATEMENT IN  RESPONSE  TO  ANY  REQUEST  OR
INVESTIGATION BY THE AGENCY, OR ANY OTHER STATE DEPARTMENT; OR
  (E) HAS INTENTIONALLY DEFRAUDED THE PUBLIC THROUGH DISHONEST OR DECEP-
TIVE MEANS.
  2. UPON A FINDING AS SET FORTH IN SUBDIVISION ONE OF THIS SECTION, THE
AGENCY MAY ENTER AN ORDER DOING ONE OR MORE OF THE FOLLOWING:
  (A) ISSUING A NOTICE OF NONCOMPLIANCE IN THE MANNER PRESCRIBED BY LAW;

S. 4115                             7

  (B)  IMPOSING  AN  ADMINISTRATIVE  FINE  NOT  TO  EXCEED FIVE THOUSAND
DOLLARS FOR EACH ACT WHICH CONSTITUTES A VIOLATION OF THIS ARTICLE OR  A
RULE OR AN ORDER;
  (C)  DIRECTING  THAT  THE PAWNBROKER CEASE AND DESIST SPECIFIED ACTIV-
ITIES;
  (D) REFUSING TO LICENSE OR REVOKING OR SUSPENDING A LICENSE;
  (E) PLACING THE LICENSEE ON PROBATION FOR A PERIOD OF TIME, SUBJECT TO
SUCH CONDITIONS AS THE AGENCY MAY SPECIFY.
  3. THE ADMINISTRATIVE PROCEEDINGS WHICH COULD RESULT IN THE  ENTRY  OF
AN  ORDER  IMPOSING  ANY  OF THE PENALTIES SPECIFIED IN PARAGRAPH (B) OF
SUBDIVISION TWO OF THIS SECTION ARE GOVERNED BY THE  PROVISIONS  OF  THE
STATE ADMINISTRATIVE PROCEDURE ACT.
  4.  (A)  WHEN THE AGENCY HAS REASONABLE CAUSE TO BELIEVE THAT A PERSON
IS OPERATING IN VIOLATION OF THIS ARTICLE, THE AGENCY MAY BRING A  CIVIL
ACTION  IN  THE  APPROPRIATE COURT FOR TEMPORARY OR PERMANENT INJUNCTIVE
RELIEF AND MAY SEEK OTHER APPROPRIATE CIVIL RELIEF,  INCLUDING  A  CIVIL
PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS FOR EACH VIOLATION, RESTITU-
TION  AND  DAMAGES  FOR  INJURED  CUSTOMERS, COURT COSTS, AND REASONABLE
ATTORNEY'S FEES.
  (B) THE AGENCY MAY TERMINATE ANY INVESTIGATION OR ACTION  UPON  AGREE-
MENT BY THE OFFENDER TO PAY A STIPULATED CIVIL PENALTY, TO MAKE RESTITU-
TION OR PAY DAMAGES TO CUSTOMERS, OR TO SATISFY ANY OTHER RELIEF AUTHOR-
IZED HEREIN AND REQUESTED BY THE AGENCY.
  5.  THE  REMEDIES PROVIDED FOR IN THIS SECTION SHALL BE IN ADDITION TO
ANY OTHER REMEDY PROVIDED BY LAW.
  S 47. PAWNBROKER TRANSACTION FORM.  1.  AT  THE  TIME  THE  PAWNBROKER
ENTERS  INTO  ANY  PAWN  OR  PURCHASE  TRANSACTION, THE PAWNBROKER SHALL
COMPLETE A PAWNBROKER TRANSACTION FORM FOR SUCH  TRANSACTION,  INCLUDING
AN  INDICATION  OF  WHETHER THE TRANSACTION IS A PAWN OR A PURCHASE, AND
THE PLEDGOR OR SELLER SHALL SIGN SUCH COMPLETED FORM.   THE AGENCY  MUST
APPROVE  THE DESIGN AND FORMAT OF THE PAWNBROKER TRANSACTION FORM, WHICH
MUST BE 8 1/2 INCHES X 11 INCHES IN  SIZE  AND  ELICIT  THE  INFORMATION
REQUIRED  UNDER  THIS  SECTION. IN COMPLETING THE PAWNBROKER TRANSACTION
FORM, THE PAWNBROKER SHALL RECORD THE FOLLOWING INFORMATION, WHICH  MUST
BE TYPED OR WRITTEN INDELIBLY AND LEGIBLY IN ENGLISH.
  2. THE FRONT OF THE PAWNBROKER TRANSACTION FORM MUST INCLUDE:
  (A) THE NAME AND ADDRESS OF THE PAWNSHOP.
  (B)  A  COMPLETE  AND  ACCURATE  DESCRIPTION  OF  THE PLEDGED GOODS OR
PURCHASED GOODS, INCLUDING THE FOLLOWING INFORMATION, IF APPLICABLE:
  (I) BRAND NAME;
  (II) MODEL NUMBER;
  (III) MANUFACTURER'S SERIAL NUMBER;
  (IV) SIZE;
  (V) COLOR, AS APPARENT TO THE UNTRAINED EYE;
  (VI) PRECIOUS METAL TYPE, WEIGHT, AND CONTENT, IF KNOWN;
  (VII) GEMSTONE DESCRIPTION, INCLUDING THE NUMBER OF STONES;
  (VIII) IN THE CASE OF FIREARMS, THE TYPE OF ACTION, CALIBER OR  GAUGE,
NUMBER OF BARRELS, BARREL LENGTH, AND FINISH;
  (IX) ANY OTHER UNIQUE IDENTIFYING MARKS, NUMBERS, NAMES, OR LETTERS.
  NOTWITHSTANDING  THE  FOREGOING,  IN  THE  CASE OF MULTIPLE ITEMS OF A
SIMILAR NATURE DELIVERED TOGETHER IN ONE TRANSACTION WHICH DO  NOT  BEAR
SERIAL  OR  MODEL  NUMBERS  AND  WHICH  DO NOT INCLUDE PRECIOUS METAL OR
GEMSTONES, SUCH AS MUSICAL OR VIDEO RECORDINGS, BOOKS, AND  HAND  TOOLS,
THE  DESCRIPTION OF THE ITEMS IS ADEQUATE IF IT CONTAINS THE QUANTITY OF
ITEMS AND A DESCRIPTION OF THE TYPE OF ITEMS DELIVERED.

S. 4115                             8

  (C) THE NAME, ADDRESS, HOME TELEPHONE  NUMBER,  PLACE  OF  EMPLOYMENT,
DATE OF BIRTH, PHYSICAL DESCRIPTION, AND RIGHT THUMBPRINT OF THE PLEDGOR
OR SELLER.
  (D) THE DATE AND TIME OF THE TRANSACTION.
  (E)  THE  TYPE  OF IDENTIFICATION ACCEPTED FROM THE PLEDGOR OR SELLER,
INCLUDING THE ISSUING AGENCY AND THE IDENTIFICATION NUMBER.
  (F) IN THE CASE OF A PAWN:
  (I) THE AMOUNT OF MONEY ADVANCED, WHICH  MUST  BE  DESIGNATED  AS  THE
AMOUNT FINANCED;
  (II)  THE  MATURITY  DATE OF THE PAWN, WHICH MUST BE THIRTY DAYS AFTER
THE DATE OF THE PAWN;
  (III) THE DEFAULT DATE OF THE PAWN AND THE AMOUNT DUE ON  THE  DEFAULT
DATE;
  (IV) THE TOTAL PAWN SERVICE CHARGE PAYABLE ON THE MATURITY DATE, WHICH
MUST BE DESIGNATED AS THE FINANCE CHARGE;
  (V)  THE  AMOUNT FINANCED PLUS THE FINANCE CHARGE THAT MUST BE PAID TO
REDEEM THE PLEDGED GOODS ON THE MATURITY DATE, WHICH MUST BE  DESIGNATED
AS THE TOTAL OF PAYMENTS;
  (VI) THE ANNUAL PERCENTAGE RATE, COMPUTED ACCORDING TO THE REGULATIONS
ADOPTED  BY THE FEDERAL RESERVE BOARD UNDER THE FEDERAL TRUTH IN LENDING
ACT; AND
  (VII) THE FRONT OR  BACK  OF  THE  PAWNBROKER  TRANSACTION  FORM  MUST
INCLUDE A STATEMENT THAT:
  (A)  ANY  PERSONAL  PROPERTY PLEDGED TO A PAWNBROKER WITHIN THIS STATE
WHICH IS NOT REDEEMED WITHIN THIRTY DAYS FOLLOWING THE MATURITY DATE  OF
THE PAWN, IF THE THIRTIETH DAY IS NOT A BUSINESS DAY, THEN THE FOLLOWING
BUSINESS DAY, IS AUTOMATICALLY FORFEITED TO THE PAWNBROKER, AND ABSOLUTE
RIGHT, TITLE, AND INTEREST IN AND TO THE PROPERTY VESTS IN AND IS DEEMED
CONVEYED TO THE PAWNBROKER BY OPERATION OF LAW, AND NO FURTHER NOTICE IS
NECESSARY;
  (B) THE PLEDGOR IS NOT OBLIGATED TO REDEEM THE PLEDGED GOODS; AND
  (C)  IF THE PAWNBROKER TRANSACTION FORM IS LOST, DESTROYED, OR STOLEN,
THE PLEDGOR MUST IMMEDIATELY ADVISE THE ISSUING PAWNBROKER IN WRITING BY
CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT  REQUESTED,  OR  IN  PERSON
EVIDENCED BY A SIGNED RECEIPT.
  (D) A PAWN MAY BE EXTENDED UPON MUTUAL AGREEMENT OF THE PARTIES.
  (G)  IN THE CASE OF A PURCHASE, THE AMOUNT OF MONEY PAID FOR THE GOODS
OR THE MONETARY VALUE ASSIGNED TO THE GOODS IN CONNECTION WITH THE TRAN-
SACTION.
  (H) A STATEMENT THAT THE PLEDGOR OR SELLER OF THE ITEM REPRESENTS  AND
WARRANTS  THAT  IT  IS  NOT STOLEN, THAT IT HAS NO LIENS OR ENCUMBRANCES
AGAINST IT, AND THAT THE PLEDGOR OR SELLER IS THE RIGHTFUL OWNER OF  THE
GOODS AND HAS THE RIGHT TO ENTER INTO THE TRANSACTION.
  3.  ANY  PERSON WHO KNOWINGLY GIVES FALSE VERIFICATION OF OWNERSHIP OR
GIVES A FALSE OR ALTERED IDENTIFICATION AND WHO RECEIVES  MONEY  FROM  A
PAWNBROKER  FOR  GOODS  SOLD  OR PLEDGED COMMITS A CLASS D FELONY IF THE
VALUE OF THE MONEY RECEIVED IS LESS THAN  THREE  HUNDRED  DOLLARS  OR  A
CLASS  C  FELONY  IF  THE  VALUE  OF THE MONEY RECEIVED IS THREE HUNDRED
DOLLARS OR MORE.
  4. A PAWNBROKER TRANSACTION FORM MUST PROVIDE A SPACE FOR THE  IMPRINT
OF  THE  RIGHT  THUMBPRINT OF THE PLEDGOR OR SELLER AND A BLANK LINE FOR
THE SIGNATURE OF THE PLEDGOR OR SELLER.
  5. AT THE TIME OF THE PAWN OR  PURCHASE  TRANSACTION,  THE  PAWNBROKER
SHALL  DELIVER  TO  THE PLEDGOR OR SELLER AN EXACT COPY OF THE COMPLETED
PAWNBROKER TRANSACTION FORM.

S. 4115                             9

  S 48. RECORDKEEPING; REPORTING; HOLD  PERIOD.  1.  A  PAWNBROKER  MUST
MAINTAIN  A  COPY  OF  EACH COMPLETED PAWNBROKER TRANSACTION FORM ON THE
PAWNSHOP PREMISES FOR AT LEAST ONE YEAR AFTER THE  DATE  OF  THE  TRANS-
ACTION.  ON  OR BEFORE THE END OF EACH BUSINESS DAY, THE PAWNBROKER MUST
DELIVER  TO  THE APPROPRIATE LAW ENFORCEMENT OFFICIAL THE ORIGINAL PAWN-
BROKER TRANSACTION FORMS FOR EACH OF THE TRANSACTIONS  OCCURRING  DURING
THE  PREVIOUS  BUSINESS  DAY, UNLESS OTHER ARRANGEMENTS HAVE BEEN AGREED
UPON BETWEEN THE PAWNBROKER AND THE APPROPRIATE  LAW  ENFORCEMENT  OFFI-
CIAL.  IF  THE  ORIGINAL  TRANSACTION  FORM  IS LOST OR DESTROYED BY THE
APPROPRIATE LAW ENFORCEMENT OFFICIAL, A COPY MAY BE USED  BY  THE  PAWN-
BROKER  AS  EVIDENCE  IN COURT. WHEN AN ELECTRONIC IMAGE OF A PLEDGOR OR
SELLER IDENTIFICATION IS ACCEPTED FOR A TRANSACTION, THE PAWNBROKER MUST
MAINTAIN THE ELECTRONIC IMAGE IN ORDER TO MEET  THE  SAME  RECORDKEEPING
REQUIREMENTS  AS FOR THE ORIGINAL TRANSACTION FORM. IF A CRIMINAL INVES-
TIGATION OCCURS, THE PAWNBROKER SHALL, UPON REQUEST, PROVIDE A CLEAR AND
LEGIBLE COPY OF THE IMAGE TO THE APPROPRIATE LAW ENFORCEMENT OFFICIAL.
  2. IF THE APPROPRIATE LAW ENFORCEMENT AGENCY SUPPLIES THE  APPROPRIATE
SOFTWARE  AND  THE  PAWNBROKER  PRESENTLY HAS THE COMPUTER ABILITY, PAWN
TRANSACTIONS SHALL BE ELECTRONICALLY TRANSFERRED. IF A  PAWNBROKER  DOES
NOT PRESENTLY HAVE THE COMPUTER ABILITY, THE APPROPRIATE LAW ENFORCEMENT
AGENCY  MAY  PROVIDE  THE  PAWNBROKER  WITH A COMPUTER AND ALL NECESSARY
EQUIPMENT FOR THE PURPOSE OF  ELECTRONICALLY  TRANSFERRING  PAWN  TRANS-
ACTIONS.  THE  APPROPRIATE LAW ENFORCEMENT AGENCY SHALL RETAIN OWNERSHIP
OF THE COMPUTER, UNLESS OTHERWISE  AGREED  UPON.  THE  PAWNBROKER  SHALL
MAINTAIN  THE  COMPUTER  IN  GOOD  WORKING ORDER, ORDINARY WEAR AND TEAR
EXCEPTED. IN THE EVENT THE PAWNBROKER TRANSFERS PAWN TRANSACTIONS  ELEC-
TRONICALLY, THE PAWNBROKER IS NOT REQUIRED TO ALSO DELIVER TO THE APPRO-
PRIATE LAW ENFORCEMENT OFFICIAL THE ORIGINAL OR COPIES OF THE PAWNBROKER
TRANSACTION FORMS. THE APPROPRIATE LAW ENFORCEMENT OFFICIAL MAY, FOR THE
PURPOSES  OF  A  CRIMINAL  INVESTIGATION,  REQUEST  THAT  THE PAWNBROKER
PRODUCE AN ORIGINAL OF A TRANSACTION FORM THAT HAS  BEEN  ELECTRONICALLY
TRANSFERRED.  THE  PAWNBROKER SHALL DELIVER THIS FORM TO THE APPROPRIATE
LAW ENFORCEMENT OFFICIAL WITHIN TWENTY-FOUR HOURS OF THE REQUEST.
  3. ALL GOODS DELIVERED TO A PAWNBROKER IN A PAWN  OR  PURCHASE  TRANS-
ACTION  MUST BE SECURELY STORED AND MAINTAINED IN AN UNALTERED CONDITION
WITHIN THE JURISDICTION OF THE APPROPRIATE LAW ENFORCEMENT OFFICIAL  FOR
A  PERIOD  OF  THIRTY  CALENDAR  DAYS AFTER THE TRANSACTION. THOSE GOODS
DELIVERED TO A PAWNBROKER IN A PURCHASE TRANSACTION MAY NOT BE  SOLD  OR
OTHERWISE  DISPOSED  OF BEFORE THE EXPIRATION OF SUCH PERIOD.  THE PAWN-
BROKER SHALL MAKE ALL PLEDGED AND PURCHASED GOODS AND ALL RECORDS RELAT-
ING TO SUCH GOODS  AVAILABLE  FOR  INSPECTION  BY  THE  APPROPRIATE  LAW
ENFORCEMENT  OFFICIAL DURING NORMAL BUSINESS HOURS THROUGHOUT SUCH PERI-
OD. THE PAWNBROKER MUST STORE AND MAINTAIN PLEDGED GOODS FOR THE  PERIOD
PRESCRIBED  IN  SECTION  FORTY-NINE  OF  THIS ARTICLE UNLESS THE PLEDGED
GOODS ARE REDEEMED EARLIER; PROVIDED, HOWEVER,  THAT  WITHIN  THE  FIRST
THIRTY  DAYS  AFTER THE ORIGINAL PAWN, THE PLEDGED GOODS MAY BE REDEEMED
ONLY BY THE PLEDGOR OR THE PLEDGOR'S ATTORNEY IN FACT.
  S 49. PLEDGED GOODS NOT REDEEMED. GOODS NOT REDEEMED BY THE PLEDGOR ON
OR BEFORE THE MATURITY DATE OF A PAWN MUST BE HELD BY THE PAWNBROKER FOR
AT LEAST THIRTY DAYS FOLLOWING SUCH DATE OR UNTIL THE NEXT BUSINESS DAY,
IF THE THIRTIETH DAY IS NOT A BUSINESS DAY.  PLEDGED GOODS NOT  REDEEMED
WITHIN  THE  THIRTY DAY PERIOD FOLLOWING THE MATURITY DATE OF A PAWN ARE
AUTOMATICALLY FORFEITED TO THE PAWNBROKER; ABSOLUTE  RIGHT,  TITLE,  AND
INTEREST  IN AND TO THE GOODS SHALL VEST IN AND SHALL BE DEEMED CONVEYED
TO THE PAWNBROKER BY OPERATION OF LAW; AND NO FURTHER NOTICE  IS  NECES-

S. 4115                            10

SARY.  A  PLEDGOR  HAS NO OBLIGATION TO REDEEM PLEDGED GOODS OR MAKE ANY
PAYMENT ON A PAWN.
  S 50. PAWN SERVICE CHARGES. 1. IN A PAWN TRANSACTION, A PAWNBROKER MAY
CONTRACT  FOR  AND RECEIVE A PAWN SERVICE CHARGE. THE INTEREST COMPONENT
OF THE PAWN SERVICE CHARGE SHALL BE DEEMED TO  BE  TWO  PERCENT  OF  THE
AMOUNT  FINANCED  FOR  EACH THIRTY DAY PERIOD IN A PAWN TRANSACTION. THE
PAWNBROKER MAY CHARGE ANY AMOUNT OF PAWN SERVICE CHARGE, SO LONG AS  THE
TOTAL AMOUNT, INCLUSIVE OF THE INTEREST COMPONENT, DOES NOT EXCEED TWEN-
TY-FIVE  PERCENT  OF THE AMOUNT FINANCED FOR EACH THIRTY DAY PERIOD IN A
PAWN TRANSACTION, EXCEPT THAT THE PAWNBROKER IS ENTITLED  TO  RECEIVE  A
MINIMUM  PAWN  SERVICE  CHARGE  OF FIVE DOLLARS FOR EACH SUCH THIRTY DAY
PERIOD.
  2. THE DEFAULT DATE OF ANY PAWN MAY BE EXTENDED TO A  SUBSEQUENT  DATE
BY  MUTUAL  AGREEMENT, BETWEEN THE PLEDGOR AND THE PAWNBROKER EXCEPT THE
PAWNBROKER MAY NOT IMPOSE A MINIMUM DURATION OF MORE THAN  THIRTY  DAYS,
EVIDENCED  BY  A WRITTEN MEMORANDUM, A COPY OF WHICH MUST BE SUPPLIED TO
THE PLEDGOR, WHICH MUST CLEARLY SPECIFY THE NEW DEFAULT  DATE,  AND  THE
PAWN  SERVICE  CHARGES  OWED ON THE NEW DEFAULT DATE. IN THIS EVENT, THE
DAILY PAWN SERVICE CHARGE FOR THE EXTENSION SHALL BE EQUAL TO  THE  PAWN
SERVICE CHARGE FOR THE ORIGINAL THIRTY DAY PERIOD DIVIDED BY THIRTY DAYS
(I.E.,  ONE-THIRTIETH  OF THE ORIGINAL TOTAL PAWN SERVICE CHARGE). THERE
IS NO LIMIT ON THE NUMBER OF EXTENSIONS THAT THE PARTIES MAY AGREE TO.
  3. THE TOTAL AMOUNT OF PAWN SERVICE  CHARGES  THAT  A  PAWNBROKER  MAY
COLLECT  IN THE CASE OF PLEDGED GOODS REDEEMED AT ANY TIME WITHIN THIRTY
DAYS AFTER THE DATE OF THE PAWN IS THE AMOUNT  PROVIDED  IN  SUBDIVISION
ONE  OF  THIS  SECTION.  THE TOTAL AMOUNT OF PAWN SERVICE CHARGES THAT A
PAWNBROKER MAY COLLECT IN THE CASE OF REDEMPTIONS OCCURRING AT ANY  TIME
MORE  THAN  THIRTY  DAYS  AFTER THE DATE OF THE PAWN IS TWICE THE AMOUNT
PROVIDED IN SUCH SUBDIVISION, EXCEPT  THAT,  FOR  REDEMPTIONS  OCCURRING
MORE  THAN  SIXTY  DAYS AFTER THE DATE OF THE PAWN, PAWN SERVICE CHARGES
CONTINUE TO ACCRUE FROM AND AFTER THE SIXTIETH DAY  AT  THE  DAILY  RATE
DETERMINED  AS  PROVIDED IN SUBDIVISION TWO OF THIS SECTION.  ANY UNUSED
PAWN SERVICE CHARGE PAID IN ADVANCE BY THE PLEDGOR SHALL BE REFUNDED  BY
THE PAWNBROKER.
  4.  PLEDGED  GOODS  MAY  BE  REDEEMED BY MAIL BY AGREEMENT BETWEEN THE
PLEDGOR AND THE PAWNBROKER. THE PLEDGOR MUST PAY IN ADVANCE  ALL  MONEYS
DUE  AND  A  REASONABLE CHARGE ASSESSED BY THE PAWNBROKER TO RECOVER ITS
COST AND EXPENSES INVOLVED IN THE PACKAGING, INSURING, AND  SHIPPING  OF
THE  PLEDGED  GOODS. THE PAWNBROKER SHALL INSURE THE PLEDGED GOODS IN AN
AMOUNT ACCEPTABLE TO THE PLEDGOR. THE PAWNBROKER'S LIABILITY FOR LOSS OR
DAMAGE IN CONNECTION WITH THE SHIPMENT OF SUCH PLEDGED GOODS IS  LIMITED
TO THE AMOUNT OF THE INSURANCE COVERAGE OBTAINED.
  5.  ANY INTEREST, CHARGE, OR FEES CONTRACTED FOR OR RECEIVED, DIRECTLY
OR INDIRECTLY, IN EXCESS OF THE AMOUNTS AUTHORIZED  UNDER  THIS  SECTION
ARE  PROHIBITED,  MAY  NOT BE COLLECTED, AND RENDER THE PAWN TRANSACTION
VOIDABLE, IN WHICH CASE  THE  PAWNBROKER  SHALL  FORFEIT  THE  RIGHT  TO
COLLECT  TWICE  THE  AMOUNT OF THE PAWN SERVICE CHARGE CONTRACTED FOR IN
THE PAWN AND, UPON THE PLEDGOR'S WRITTEN REQUEST RECEIVED BY  THE  PAWN-
BROKER WITHIN THIRTY DAYS AFTER THE MATURITY DATE, SHALL BE OBLIGATED TO
RETURN  TO  THE PLEDGOR THE PLEDGED GOODS DELIVERED TO THE PAWNBROKER IN
CONNECTION WITH THE PAWN UPON PAYMENT  OF  THE  BALANCE  REMAINING  DUE,
PROVIDED  THAT  THERE SHALL BE NO PENALTY FOR A VIOLATION RESULTING FROM
AN ACCIDENTAL AND BONA FIDE ERROR THAT IS CORRECTED UPON DISCOVERY.  ANY
ACTION  TO CIRCUMVENT THE LIMITATION ON PAWN SERVICE CHARGES COLLECTIBLE
UNDER THIS SECTION IS VOIDABLE. IN THE EVENT A PLEDGOR MAKES  A  PARTIAL
PAYMENT  ON A PAWN THAT REDUCES THE AMOUNT FINANCED, ANY ADDITIONAL PAWN

S. 4115                            11

SERVICE CHARGES SHALL BE CALCULATED ON  THE  REMAINING  BALANCE  OF  THE
ORIGINAL AMOUNT FINANCED.
  S  51.  PROHIBITED  ACTS.   A PAWNBROKER, OR AN EMPLOYEE OR AGENT OF A
PAWNBROKER, MAY NOT:
  1. FALSIFY OR INTENTIONALLY FAIL TO MAKE  AN  ENTRY  OF  ANY  MATERIAL
MATTER IN A PAWNBROKER TRANSACTION FORM.
  2.  REFUSE  TO ALLOW THE AGENCY, THE APPROPRIATE LAW ENFORCEMENT OFFI-
CIAL, OR THE ATTORNEY GENERAL, OR  ANY  OF  THEIR  DESIGNATED  REPRESEN-
TATIVES HAVING JURISDICTION, TO INSPECT COMPLETED PAWNBROKER TRANSACTION
FORMS  OR  PLEDGED  OR  PURCHASED GOODS DURING THE ORDINARY HOURS OF THE
PAWNBROKER'S BUSINESS OR OTHER TIME  ACCEPTABLE  TO  BOTH  PARTIES.  THE
APPROPRIATE  LAW  ENFORCEMENT  OFFICIAL SHALL DISCLOSE TO A CLAIMANT THE
NAME AND ADDRESS OF THE PAWNBROKER, THE NAME AND ADDRESS OF THE  CONVEY-
ING CUSTOMER, AND A DESCRIPTION OF PAWNED, PURCHASED, OR CONSIGNED GOODS
THAT THE CLAIMANT CLAIMS TO BE MISAPPROPRIATED.
  3.  OBLITERATE, DISCARD, OR DESTROY A COMPLETED PAWNBROKER TRANSACTION
FORM SOONER THAN THREE YEARS AFTER THE DATE OF THE TRANSACTION.
  4. ACCEPT A PLEDGE OR PURCHASE PROPERTY FROM A PERSON UNDER THE AGE OF
EIGHTEEN YEARS.
  5. MAKE ANY AGREEMENT REQUIRING OR ALLOWING THE PERSONAL LIABILITY  OF
A PLEDGOR OR THE WAIVER OF ANY OF THE PROVISIONS OF THIS SECTION.
  6. KNOWINGLY ENTER INTO A PAWN OR PURCHASE TRANSACTION WITH ANY PERSON
WHO IS UNDER THE INFLUENCE OF ALCOHOL OR CONTROLLED SUBSTANCES WHEN SUCH
CONDITION  IS  APPARENT, OR WITH ANY PERSON USING THE NAME OF ANOTHER OR
THE REGISTERED NAME OF ANOTHER'S BUSINESS.
  7. CONDUCT ANY PAWN OR PURCHASE TRANSACTION AT A DRIVE-THROUGH  WINDOW
OR  SIMILAR  DEVICE  IN  WHICH  THE  CUSTOMER REMAINS IN A VEHICLE WHILE
CONDUCTING THE TRANSACTION.
  8. FAIL TO RETURN OR REPLACE PLEDGED GOODS TO A PLEDGOR  UPON  PAYMENT
OF  THE  FULL  AMOUNT  DUE THE PAWNBROKER, UNLESS THE PLEDGED GOODS HAVE
BEEN PLACED UNDER A HOLD ORDER UNDER THIS ARTICLE, OR TAKEN INTO CUSTODY
BY A COURT OR OTHERWISE DISPOSED OF BY COURT ORDER.
  9. SELL OR OTHERWISE CHARGE FOR INSURANCE IN CONNECTION  WITH  A  PAWN
TRANSACTION,  EXCEPT  IN  CONNECTION  WITH THE SHIPMENT OF PLEDGED GOODS
REDEEMED BY MAIL AS PROVIDED IN THIS ARTICLE.
  10. ENGAGE IN TITLE LOAN  TRANSACTIONS  AT,  WITHIN,  OR  ADJOINING  A
LICENSED PAWNSHOP LOCATION.
  11. LEASE PLEDGED GOODS TO THE PLEDGOR OR ANY OTHER PARTY.
  12. OPERATE A PAWNSHOP BETWEEN THE HOURS OF TEN P.M. AND SEVEN A.M.
  13. KNOWINGLY HIRE ANYONE TO WORK IN A PAWNSHOP WHO HAS BEEN CONVICTED
OF,  OR  ENTERED  A PLEA OF GUILTY OR NOLO CONTENDERE TO, OR HAD ADJUDI-
CATION WITHHELD FOR A  FELONY  WITHIN  THE  LAST  FIVE  YEARS,  OR  BEEN
CONVICTED  OF, OR ENTERED A PLEA OF GUILTY OR NOLO CONTENDERE TO, OR HAD
ADJUDICATION WITHHELD FOR A CRIME  WITHIN  THE  LAST  FIVE  YEARS  WHICH
INVOLVES  THEFT,  LARCENY,  DEALING IN STOLEN PROPERTY, RECEIVING STOLEN
PROPERTY, BURGLARY, EMBEZZLEMENT, OBTAINING PROPERTY BY FALSE PRETENSES,
POSSESSION OF ALTERED PROPERTY, OR ANY FRAUDULENT OR DISHONEST DEALING.
  14. KNOWINGLY  ACCEPT  OR  RECEIVE  MISAPPROPRIATED  PROPERTY  FROM  A
CONVEYING CUSTOMER IN A PAWN OR PURCHASE TRANSACTION.
  S  52.  RIGHT  TO REDEEM; LOST PAWNBROKER TRANSACTION FORM. 1.  ONLY A
PLEDGOR OR A PLEDGOR'S AUTHORIZED REPRESENTATIVE IS ENTITLED  TO  REDEEM
THE PLEDGED GOODS DESCRIBED IN THE PAWNBROKER TRANSACTION FORM; HOWEVER,
IF  THE  PAWNBROKER DETERMINES THAT THE PERSON IS NOT THE ORIGINAL PLED-
GOR, OR THE PLEDGOR'S AUTHORIZED REPRESENTATIVE, THE PAWNBROKER  IS  NOT
REQUIRED  TO  ALLOW  THE REDEMPTION OF THE PLEDGED GOODS BY SUCH PERSON.
THE PERSON REDEEMING THE PLEDGED GOODS MUST SIGN THE PLEDGOR'S  COPY  OF

S. 4115                            12

THE  PAWNBROKER  TRANSACTION  FORM,  WHICH  THE PAWNBROKER MAY RETAIN AS
EVIDENCE OF THE PERSON'S RECEIPT OF THE PLEDGED  GOODS.  IF  THE  PERSON
REDEEMING  THE PLEDGED GOODS IS THE PLEDGOR'S AUTHORIZED REPRESENTATIVE,
THAT PERSON MUST PRESENT NOTARIZED AUTHORIZATION FROM THE ORIGINAL PLED-
GOR  AND  SHOW IDENTIFICATION TO THE PAWNBROKER AND THE PAWNBROKER SHALL
RECORD THAT PERSON'S NAME AND ADDRESS ON THE PAWNBROKER TRANSACTION FORM
RETAINED BY THE PAWNSHOP. IT IS THE PAWNBROKER'S RESPONSIBILITY TO VERI-
FY THAT THE PERSON REDEEMING THE PLEDGED GOODS IS EITHER THE PLEDGOR  OR
THE PLEDGOR'S AUTHORIZED REPRESENTATIVE.
  2.  IF  A  PLEDGOR'S  COPY OF THE PAWNBROKER TRANSACTION FORM IS LOST,
DESTROYED, OR STOLEN, THE PLEDGOR MUST NOTIFY THE PAWNBROKER IN  WRITING
BY  CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OR IN PERSON
EVIDENCED BY A SIGNED RECEIPT, AND RECEIPT OF  THIS  NOTICE  INVALIDATES
THE PAWNBROKER TRANSACTION FORM IF THE PLEDGED GOODS HAVE NOT PREVIOUSLY
BEEN  REDEEMED.  BEFORE  DELIVERING  THE  PLEDGED GOODS OR ISSUING A NEW
PAWNBROKER TRANSACTION FORM, THE PAWNBROKER MUST REQUIRE THE PLEDGOR  TO
MAKE  A  WRITTEN  STATEMENT  OF  THE  LOSS, DESTRUCTION, OR THEFT OF THE
PLEDGOR'S COPY OF THE PAWNBROKER TRANSACTION FORM. THE  PAWNBROKER  MUST
RECORD ON THE WRITTEN STATEMENT THE TYPE OF IDENTIFICATION AND THE IDEN-
TIFICATION  NUMBER  ACCEPTED FROM THE PLEDGOR, THE DATE THE STATEMENT IS
GIVEN, AND THE NUMBER OF THE PAWNBROKER TRANSACTION FORM THAT WAS  LOST,
DESTROYED,  OR STOLEN. THE STATEMENT MUST BE SIGNED BY THE PAWNBROKER OR
THE PAWNSHOP EMPLOYEE WHO ACCEPTS THE  STATEMENT  FROM  THE  PLEDGOR.  A
PAWNBROKER  IS ENTITLED TO A FEE NOT TO EXCEED TWO DOLLARS IN CONNECTION
WITH EACH LOST, DESTROYED, OR STOLEN PAWNBROKER TRANSACTION FORM AND THE
TAKING OF A PROPERLY PREPARED WRITTEN STATEMENT.
  3. SALES TAX IS NOT DUE OR COLLECTIBLE IN CONNECTION WITH THE  REDEMP-
TION OF PLEDGED GOODS.
  4. IF PLEDGED GOODS ARE LOST OR DAMAGED WHILE IN THE POSSESSION OF THE
PAWNBROKER,  THE PAWNBROKER MAY SATISFY THE PLEDGOR'S CLAIM BY REPLACING
THE LOST OR DAMAGED GOODS WITH LIKE KINDS OF MERCHANDISE OF EQUAL VALUE,
WITH WHICH THE PLEDGOR CAN REASONABLY REPLACE THE GOODS.  SUCH  REPLACE-
MENT  IS  A DEFENSE TO ANY CIVIL ACTION BASED UPON THE LOSS OR DAMAGE OF
THE GOODS.
  S 53. PAWNBROKER'S LIEN. A PAWNBROKER HAS A  POSSESSORY  LIEN  ON  THE
PLEDGED  GOODS  PAWNED  AS  SECURITY  FOR  THE  FUNDS ADVANCED, THE PAWN
SERVICE CHARGE  OWED,  AND  THE  OTHER  CHARGES  AUTHORIZED  UNDER  THIS
SECTION, BUT NOT FOR OTHER DEBTS DUE TO THE PAWNBROKER. A PAWNBROKER HAS
NO  RECOURSE  AGAINST A PLEDGOR FOR PAYMENT ON A PAWN TRANSACTION EXCEPT
FOR THE PLEDGED GOODS THEMSELVES. EXCEPT AS OTHERWISE PROVIDED  IN  THIS
SECTION,  THE  PAWNBROKER  MUST  RETAIN  POSSESSION OF THE PLEDGED GOODS
UNTIL THE LIEN IS SATISFIED OR UNTIL THE DEFAULT  DATE.  THE  PAWNBROKER
MAY  BE  COMPELLED  TO  RELINQUISH  POSSESSION OF THE PLEDGED GOODS ONLY
AFTER RECEIPT OF THE APPLICABLE FUNDS ADVANCED PLUS THE ACCRUED  SERVICE
CHARGE  AND  OTHER AUTHORIZED CHARGES, UPON COURT ORDER, OR AS OTHERWISE
PROVIDED BY LAW.
  S 54. CLAIMS AGAINST PURCHASED GOODS OR PLEDGED GOODS  HELD  BY  PAWN-
BROKERS. 1. TO OBTAIN POSSESSION OF PURCHASED OR PLEDGED GOODS HELD BY A
PAWNBROKER  WHICH  A CLAIMANT CLAIMS TO BE MISAPPROPRIATED, THE CLAIMANT
MUST NOTIFY THE PAWNBROKER BY CERTIFIED MAIL, RETURN RECEIPT  REQUESTED,
OR IN PERSON EVIDENCED BY SIGNED RECEIPT, OF THE CLAIMANT'S CLAIM TO THE
PURCHASED OR PLEDGED GOODS. THE NOTICE MUST CONTAIN A COMPLETE AND ACCU-
RATE  DESCRIPTION OF THE PURCHASED OR PLEDGED GOODS AND MUST BE ACCOMPA-
NIED BY A LEGIBLE COPY OF THE APPLICABLE LAW ENFORCEMENT AGENCY'S REPORT
ON THE MISAPPROPRIATION OF SUCH PROPERTY. IF THE CLAIMANT AND THE  PAWN-
BROKER  DO NOT RESOLVE THE MATTER WITHIN TEN DAYS AFTER THE PAWNBROKER'S

S. 4115                            13

RECEIPT OF THE NOTICE, THE CLAIMANT MAY PETITION THE COURT TO ORDER  THE
RETURN  OF  THE PROPERTY, NAMING THE PAWNBROKER AS A DEFENDANT, AND MUST
SERVE THE PAWNBROKER WITH A COPY OF THE PETITION. THE  PAWNBROKER  SHALL
HOLD  THE  PROPERTY  DESCRIBED  IN  THE  PETITION  UNTIL  THE  RIGHT  TO
POSSESSION IS RESOLVED BY THE PARTIES OR BY A COURT OF COMPETENT  JURIS-
DICTION.  THE  COURT  SHALL  WAIVE  ANY  FILING  FEE FOR THE PETITION TO
RECOVER THE PROPERTY, AND THE SHERIFF SHALL WAIVE THE SERVICE FEES.
  2. IF, AFTER NOTICE AND A HEARING, THE COURT FINDS THAT  THE  PROPERTY
WAS  MISAPPROPRIATED AND ORDERS THE RETURN OF THE PROPERTY TO THE CLAIM-
ANT:
  (A) THE CLAIMANT MAY RECOVER FROM  THE  PAWNBROKER  THE  COST  OF  THE
ACTION, INCLUDING THE CLAIMANT'S REASONABLE ATTORNEY'S FEES; AND
  (B)  IF  THE  CONVEYING CUSTOMER IS CONVICTED OF THEFT, A VIOLATION OF
THIS SECTION, OR DEALING IN STOLEN PROPERTY, THE COURT SHALL  ORDER  THE
CONVEYING CUSTOMER TO REPAY THE PAWNBROKER THE FULL AMOUNT THE CONVEYING
CUSTOMER  RECEIVED FROM THE PAWNBROKER FOR THE PROPERTY, PLUS ALL APPLI-
CABLE PAWN  SERVICE  CHARGES.  AS  USED  IN  THIS  PARAGRAPH,  THE  TERM
"CONVICTED  OF" INCLUDES A PLEA OF NOLO CONTENDERE TO THE CHARGES OR ANY
AGREEMENT IN WHICH ADJUDICATION IS WITHHELD; AND
  (C) THE CONVEYING CUSTOMER SHALL BE RESPONSIBLE TO PAY ALL  ATTORNEY'S
FEES AND TAXABLE COSTS INCURRED BY THE PAWNBROKER IN DEFENDING A REPLEV-
IN ACTION OR ANY OTHER CIVIL MATTER WHEREIN IT IS FOUND THAT THE CONVEY-
ING CUSTOMER WAS IN VIOLATION OF THIS SECTION.
  3.  IF  THE  COURT  FINDS  THAT THE CLAIMANT FAILED TO COMPLY WITH THE
REQUIREMENTS IN SUBDIVISION ONE  OF  THIS  SECTION  OR  OTHERWISE  FINDS
AGAINST  THE CLAIMANT, THE CLAIMANT IS LIABLE FOR THE DEFENDANTS' COSTS,
INCLUDING REASONABLE ATTORNEY'S FEES.
  4. THE SALE, PLEDGE, OR DELIVERY OF TANGIBLE PERSONAL  PROPERTY  TO  A
PAWNBROKER BY ANY PERSON IN THIS STATE IS CONSIDERED TO BE:
  (A)  AN  AGREEMENT  BY  THE PERSON WHO SELLS, PLEDGES, OR DELIVERS THE
TANGIBLE PERSONAL PROPERTY THAT THE PERSON IS SUBJECT TO  THE  JURISDIC-
TION  OF  THE  COURT IN ALL CIVIL ACTIONS AND PROCEEDINGS ARISING OUT OF
THE PLEDGE OR SALE TRANSACTION FILED BY EITHER A RESIDENT OR NONRESIDENT
PLAINTIFF;
  (B) AN APPOINTMENT OF THE SECRETARY OF STATE  BY  ANY  NONRESIDENT  OF
THIS  STATE  AS THAT PERSON'S LAWFUL ATTORNEY AND AGENT UPON WHOM MAY BE
SERVED ALL PROCESS IN SUITS PERTAINING TO THE  ACTIONS  AND  PROCEEDINGS
ARISING OUT OF THE SALE, PLEDGE, OR DELIVERY; AND
  (C)  AN  AGREEMENT  BY ANY NONRESIDENT THAT ANY PROCESS IN ANY SUIT SO
SERVED HAS THE SAME LEGAL FORCE AND VALIDITY AS IF PERSONALLY SERVED  IN
THIS STATE.
  S 55. HOLD ORDERS; ISSUANCE; REQUIRED INFORMATION; PROCEDURES. 1. WHEN
AN  APPROPRIATE  LAW  ENFORCEMENT OFFICIAL HAS PROBABLE CAUSE TO BELIEVE
THAT PROPERTY IN THE POSSESSION OF A PAWNBROKER IS MISAPPROPRIATED,  THE
OFFICIAL  MAY  PLACE  A  WRITTEN HOLD ORDER ON THE PROPERTY. THE WRITTEN
HOLD ORDER SHALL IMPOSE A HOLDING  PERIOD  NOT  TO  EXCEED  NINETY  DAYS
UNLESS EXTENDED BY COURT ORDER. THE APPROPRIATE LAW ENFORCEMENT OFFICIAL
MAY  RESCIND, IN WRITING, ANY HOLD ORDER. AN APPROPRIATE LAW ENFORCEMENT
OFFICIAL MAY PLACE ONLY ONE HOLD ORDER ON PROPERTY.
  2. UPON THE EXPIRATION OF THE HOLDING  PERIOD,  THE  PAWNBROKER  SHALL
NOTIFY,  IN  WRITING, THE APPROPRIATE LAW ENFORCEMENT OFFICIAL BY CERTI-
FIED MAIL,  RETURN  RECEIPT  REQUESTED,  THAT  THE  HOLDING  PERIOD  HAS
EXPIRED. IF, ON THE TENTH DAY AFTER THE WRITTEN NOTICE HAS BEEN RECEIVED
BY  THE  APPROPRIATE  LAW  ENFORCEMENT  OFFICIAL, THE PAWNBROKER HAS NOT
RECEIVED FROM A COURT AN EXTENSION OF THE HOLD ORDER  ON  THE  PROPERTY,
TITLE  TO THE PROPERTY SHALL VEST IN AND BE DEEMED CONVEYED BY OPERATION

S. 4115                            14

OF LAW TO THE PAWNBROKER, FREE OF ANY LIABILITY FOR CLAIMS  BUT  SUBJECT
TO  ANY  RESTRICTIONS  CONTAINED  IN  THE  PAWN TRANSACTION CONTRACT AND
SUBJECT TO THE PROVISIONS OF THIS SECTION.
  3. A HOLD ORDER MUST SPECIFY:
  (A) THE NAME AND ADDRESS OF THE PAWNBROKER.
  (B)  THE  NAME, TITLE, AND IDENTIFICATION NUMBER OF THE REPRESENTATIVE
OF THE APPROPRIATE LAW ENFORCEMENT OFFICIAL OR  THE  COURT  PLACING  THE
HOLD ORDER.
  (C)  IF  APPLICABLE,  THE  NAME  AND  ADDRESS  OF  THE APPROPRIATE LAW
ENFORCEMENT OFFICIAL OR COURT TO WHICH SUCH REPRESENTATIVE  IS  ATTACHED
AND THE NUMBER, IF ANY, ASSIGNED TO THE CLAIM REGARDING THE PROPERTY.
  (D) A COMPLETE DESCRIPTION OF THE PROPERTY TO BE HELD, INCLUDING MODEL
NUMBER AND SERIAL NUMBER IF APPLICABLE.
  (E)  THE  NAME OF THE PERSON REPORTING THE PROPERTY TO BE MISAPPROPRI-
ATED UNLESS OTHERWISE PROHIBITED BY LAW.
  (F) THE MAILING ADDRESS OF THE PAWNBROKER WHERE THE PROPERTY IS HELD.
  (G) THE EXPIRATION DATE OF THE HOLDING PERIOD.
  4. THE PAWNBROKER OR THE PAWNBROKER'S  REPRESENTATIVE  MUST  SIGN  AND
DATE  A  COPY OF THE HOLD ORDER AS EVIDENCE OF RECEIPT OF THE HOLD ORDER
AND THE BEGINNING OF THE NINETY DAY HOLDING PERIOD.
  5. (A) EXCEPT AS PROVIDED IN PARAGRAPH B OF THIS SUBDIVISION, A  PAWN-
BROKER  MAY  NOT  RELEASE OR DISPOSE OF PROPERTY SUBJECT TO A HOLD ORDER
EXCEPT PURSUANT TO A COURT ORDER, A WRITTEN RELEASE FROM THE APPROPRIATE
LAW ENFORCEMENT OFFICIAL, OR THE EXPIRATION OF THE HOLDING PERIOD OF THE
HOLD ORDER.
  (B) WHILE A HOLD ORDER IS IN EFFECT, THE PAWNBROKER MUST UPON  REQUEST
RELEASE  THE  PROPERTY  SUBJECT  TO THE HOLD ORDER TO THE CUSTODY OF THE
APPROPRIATE LAW ENFORCEMENT OFFICIAL FOR  USE  IN  A  CRIMINAL  INVESTI-
GATION.  THE  RELEASE  OF THE PROPERTY TO THE CUSTODY OF THE APPROPRIATE
LAW ENFORCEMENT OFFICIAL IS NOT CONSIDERED A WAIVER OR  RELEASE  OF  THE
PAWNBROKER'S   PROPERTY   RIGHTS  OR  INTEREST  IN  THE  PROPERTY.  UPON
COMPLETION OF THE CRIMINAL PROCEEDING, THE PROPERTY MUST BE RETURNED  TO
THE  PAWNBROKER  UNLESS  THE  COURT  ORDERS OTHER DISPOSITION. WHEN SUCH
OTHER DISPOSITION IS ORDERED, THE COURT  SHALL  ADDITIONALLY  ORDER  THE
CONVEYING  CUSTOMER  TO  PAY RESTITUTION TO THE PAWNBROKER IN THE AMOUNT
RECEIVED BY THE  CONVEYING  CUSTOMER  FOR  THE  PROPERTY  TOGETHER  WITH
REASONABLE ATTORNEY'S FEES AND COSTS.
  S 55-A. CRIMINAL PENALTIES. 1. ANY PERSON WHO ENGAGES IN BUSINESS AS A
PAWNBROKER WITHOUT FIRST SECURING A LICENSE IS GUILTY OF A CLASS C FELO-
NY.
  2.  IN  ADDITION  TO  ANY  OTHER  PENALTY,  ANY  PERSON, WHO WILLFULLY
VIOLATES THIS SECTION OR WHO WILLFULLY MAKES A FALSE ENTRY IN ANY RECORD
SPECIFICALLY REQUIRED BY THIS SECTION IS GUILTY OF A CLASS  A  MISDEMEA-
NOR.  CLERICAL  OR RECORDKEEPING ERRORS, SUCH AS TYPOGRAPHICAL ERRORS OR
SCRIVENER'S ERRORS, REGARDING ANY DOCUMENT OR RECORD  REQUIRED  BY  THIS
SECTION  DO  NOT CONSTITUTE A WILLFUL VIOLATION OF THIS SECTION, AND ARE
NOT SUBJECT TO CRIMINAL PENALTIES.  CLERICAL OR RECORDKEEPING ERRORS ARE
SUBJECT TO THE ADMINISTRATIVE REMEDIES, AS PROVIDED IN THIS ARTICLE.
  S 55-B. INJUNCTIONS. WHEN THE AGENCY HAS REASONABLE CAUSE  TO  BELIEVE
THAT  A  PERSON IS VIOLATING THIS ARTICLE, THE AGENCY MAY ENTER AN ORDER
REQUIRING THE PERSON TO STOP THE VIOLATION. THE AGENCY MAY PETITION  THE
COURT  TO  ENJOIN  THE PERSON FROM ENGAGING IN THE VIOLATION, CONTINUING
THE VIOLATION, OR DOING ANY ACT IN FURTHERANCE  OF  THE  VIOLATION.  THE
COURT MAY ORDER A PRELIMINARY OR PERMANENT INJUNCTION.
  S  55-C.  RECORDS  OF  THE  DIVISION OF CRIMINAL JUSTICE SERVICES. THE
DIVISION OF CRIMINAL JUSTICE SERVICES SHALL, UPON REQUEST OF THE AGENCY,

S. 4115                            15

SUPPLY TO THE AGENCY ANY ARREST AND CONVICTION RECORDS IN ITS POSSESSION
OF AN INDIVIDUAL APPLYING FOR OR HOLDING A LICENSE UNDER THIS ARTICLE.
  S  55-D.  CONFLICTING LOCAL LAWS OR ORDINANCES. ANY COUNTY OR CITY MAY
ENACT LOCAL LAWS OR ORDINANCES THAT ARE IN COMPLIANCE WITH, BUT NOT MORE
RESTRICTIVE THAN THIS SECTION, EXCEPT THAT SUCH LOCAL LAW  OR  ORDINANCE
SHALL NOT REQUIRE THE PAYMENT OF ANY FEE OR TAX RELATED TO A PAWN TRANS-
ACTION  OR  PURCHASE  UNLESS  AUTHORIZED  UNDER THE LAWS OF THE STATE OR
RESTRICT HOURS OF OPERATIONS OTHER THAN BETWEEN MIDNIGHT  AND  SIX  A.M.
ANY  ORDINANCE  THAT  CONFLICTS  WITH THIS SECTION IS VOID. THIS SECTION
DOES NOT AFFECT THE AUTHORITY OF A COUNTY OR MUNICIPALITY  TO  ESTABLISH
LAND  USE  CONTROLS  OR  REQUIRE A PAWNBROKER TO OBTAIN A CERTIFICATE OF
OCCUPANCY AS OTHERWISE REQUIRED BY LAW.
  S 55-E. RULES AND REGULATIONS. THE  ATTORNEY  GENERAL  MAY  PROMULGATE
SUCH RULES AND REGULATIONS HE OR SHE DEEMS NECESSARY FOR THE IMPLEMENTA-
TION AND ENFORCEMENT OF THE PROVISIONS OF THIS ARTICLE.
  S 2. The closing paragraph of section 340 of the banking law, as added
by chapter 22 of the laws of 1990, is amended to read as follows:
  Nothing in this article shall apply to licensed [collateral loan] PAWN
brokers LICENSED PURSUANT TO ARTICLE FIVE OF THE GENERAL BUSINESS LAW.
  S  3.  Subdivision 3 of section 165.45 of the penal law, as amended by
chapter 515 of the laws of 1986, is amended to read as follows:
  3. He is a [collateral loan] PAWN broker LICENSED IN  ACCORDANCE  WITH
THE PROVISIONS OF ARTICLE FIVE OF THE GENERAL BUSINESS LAW, or is in the
business of buying, selling or otherwise dealing in property; or
  S  4.  Subdivision 2 of section 165.55 of the penal law, as amended by
chapter 321 of the laws of 1983, is amended to read as follows:
  2. A [collateral loan] PAWN broker LICENSED IN ACCORDANCE WITH ARTICLE
FIVE OF THE GENERAL BUSINESS LAW or a person in the business of  buying,
selling  or  otherwise dealing in property who possesses stolen property
is presumed to know that such property was  stolen  if  he  obtained  it
without  having  ascertained  by reasonable inquiry that the person from
whom he obtained it had a legal right to possess it.
  S 5. Section 202-b of the lien law, as amended by chapter 321  of  the
laws of 1983, is amended to read as follows:
  S  202-b.  Pledgee may buy at public sale. Unless the pledge agreement
otherwise provides, in all cases  where  a  pledgee  may  lawfully  sell
pledged  property  and the property is sold at public sale, the pledgee,
or his assignee or the legal representative of either, may fairly and in
good faith purchase the pledged property or  any  part  thereof  at  the
sale.  This  section  does  not  apply  to  a sale of property pawned or
pledged with a [collateral loan] PAWN broker LICENSED IN ACCORDANCE WITH
ARTICLE 5 OF THE GENERAL BUSINESS LAW.
  S 6. This act shall take effect on the first of November next succeed-
ing the date upon which it shall have become  a  law,  except  that  any
rules  and  regulations  necessary  for the operation and enforcement of
this act may be implemented immediately.

Co-Sponsors

S4115A - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd §46, Gen Bus L
Versions Introduced in 2013-2014 Legislative Session:
A6093

S4115A - Bill Texts

view summary

Relates to collateral loan brokers.

view sponsor memo
BILL NUMBER:S4115A

TITLE OF BILL: An act to amend the general business law, in relation
to permitting storage fees in connection with collateral loans

PURPOSE OF BILL: The purpose of the bill is to update New York
statutes currently regulating what are identified as collateral loan
brokers, by enacting a rigorous licensure, regulatory and enforceable
scheme of law applicable to what everyone commonly refers to as
pawnbrokers. By enacting the strict measures contained herein, the
state recognizes its moral responsibility to those who absent the
existence of pawnbrokers, may have no access to credit when absolutely
necessary.

SUMMARY OF PROVISIONS: OF BILL: The New York Pawnbroking Act enacted
by the provisions of this bill provides for an extensive revision of
the provisions of New York law as it relates to the conduct of
business conducted by pawnshop, which in existing law references
collateral loan givers. It requires those conducting such a pawn
business to obtain an annual license, and imposes detailed security
requirements upon those who hold themselves out as pawnbrokers. Each
pawn shop must maintain a net worth of at least $50,000 or file
security in the form of a bond, letter of credit or certificate of
deposit in the amount of $10,000 and further authorizes licensing fees
and imposes penalties for non-compliance with the law. Enforcement of
the law would be under the jurisdiction of the State attorney General,
and the bill permits local law enforcement leeway to also act upon
violations.

Section 1 of the bill repeals the existing antiquated Article 5 of the
General Business Law, and adds a new article 5 relating to pawnbrokers
as commonly identified.

Sections 2, 3, 4 and 5 of the bill amend section 340 of the banking
law, sections 165.45 and 165.55 of the penal law, and section 202-a of
the lien law respectfully to delete old references to "collateral loan
brokers" and update such sections to state they are still applicable
to pawnbrokers.

Section 6 of the bill is the effective date.

JUSTIFICATION: The provisions of the bill are two folded. First by
enacting the strict licensure provisions contained in the new language
added to the general business law, the state can insure to the public
that only responsible and able entities are carrying the business of
pawning; that violations of the duties pawnbrokers owe to the public
with whom the deal are severely dealt with, and that the best
interests of the state are realized by a systematic and dependable
enforcement procedure. Secondly, the statutes as altered in the bill
recognize and address the need to modernize the oversight of the
business of pawnbroking so that the public can be confident with the
business with whom they are partnering.

LEGISLATIVE HISTORY: This is a new bill for the 2013 Session


FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: Considerable
revenue will be realized to offset any increase in enforcement and
regulatory requirements to the benefit of the state.

EFFECTIVE DATE: This act shall take effect on the first day of
November next succeeding the date upon which it shall have become a
law, except that any rules and regulations necessary for the operation
and enforcement of this act may be implemented immediately.

view full text
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4115--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 8, 2013
                               ___________

Introduced  by  Sens.  SAVINO, ADDABBO, AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the general business  law,  in  relation  to  permitting
  storage fees in connection with collateral loans

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 46 of the general business law, as amended by chap-
ter 651 of the laws of 2005, is amended to read as follows:
  S 46. Rate of interest; STORAGE  FEE.    1.  (A)  Notwithstanding  any
general  or special statutes, local laws and ordinances to the contrary,
no collateral loan broker shall ask, demand or receive any greater  rate
of  interest than four per centum per month, or any fraction of a month,
and a notice containing a list of  such  rates  of  interest  as  herein
provided  and  in accordance with the act of congress entitled "Truth in
Lending Act" and the regulations thereunder, as such act and regulations
may from time to time be amended shall be conspicuously displayed within
the premises of such collateral loan broker. A minimum  interest  charge
of twenty-five cents per month may be made on any loan.
  (B)  No  collateral  loan  broker  shall receive or be entitled to any
interest or charges OR STORAGE FEE as provided by this  article  on  any
loan  for  any  period of time exceeding fifteen months from the date of
the making of such loan, provided however that where a loan is  extended
at  the  direct  request  of the pledgor, the collateral loan broker may
receive and be entitled to any interest  or  charges  provided  by  this
article on such loan for any period of time not to exceed fifteen months
from the date of such extension.
  2.  NOTWITHSTANDING ANY GENERAL OR SPECIAL LAW, LOCAL LAW OR ORDINANCE
TO THE CONTRARY, NO COLLATERAL LOAN BROKER SHALL ASK, DEMAND OR  RECEIVE
A  STORAGE  FEE WHICH EXCEEDS AN AMOUNT EQUAL TO THIRTEEN PERCENT OF THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09597-03-3

S. 4115--A                          2

AMOUNT OF THE LOAN FOR THE FIRST THIRTY DAYS, AND SEVENTEEN  PERCENT  OF
THE  AMOUNT  OF THE LOAN FOR EACH THIRTY DAYS OR PORTION THEREOF IF SUCH
LOAN IS EXTENDED BEYOND THIRTY DAYS AT THE SOLE DISCRETION OF THE  PLED-
GOR.
  S 2. This act shall take effect immediately and shall apply to collat-
eral loans made on or after such date.

Co-Sponsors

S4115B (ACTIVE) - Bill Details

Current Committee:
Law Section:
General Business Law
Laws Affected:
Amd §46, Gen Bus L
Versions Introduced in 2013-2014 Legislative Session:
A6093

S4115B (ACTIVE) - Bill Texts

view summary

Relates to collateral loan brokers.

view sponsor memo
BILL NUMBER:S4115B

TITLE OF BILL: An act to amend the general business law, in relation
to collateral loan brokers; and to repeal certain provisions of such
law relating thereto

PURPOSE OF BILL:

The purpose of the bill is to update New York statutes currently
regulating what are identified as collateral loan brokers, by enacting
a rigorous licensure, regulatory and enforceable scheme of law
applicable to what everyone commonly refers to as pawnbrokers.

SUMMARY OF PROVISIONS OF BILL:

The bill amends varies sections of the general business law pertaining
to collateral loans:

§ 40. Licenses: establishes the New York State Department of Financial
Services as the licensing authority for collateral loan brokers (or
pawnbrokers), replacing local government bodies and/or officials.

§ 41. Licenses, how obtained; penalty for carrying on business without
license - replaces local governments with the Department of Financial
Services as the licensing authority for purposes of collecting
licensing fees, filing and approval of bonds, and authority to revoke
licenses for cause.

§ 41-A. Continuing Education Requirement - replaces local governments
with the Department of Financial Services as the entity with authority
to approve continuing education courses and programs.

§ 42. Action on Bond: No change from existing General Business Law.

§ 43. Certain entries to be made in book - imposes much more
extensive, comprehensive and detailed bookkeeping/recording
requirements, including significant additional information describing
the item pledged or sold and significant additional information
regarding the customer. These additional recording requirements will
put pawnbrokers and law enforcement in a much better position to
identify, monitor and track pawnbroker transactions, customers and the
items sold and pledged.

§ 44. Memorandum to be Given - replaces the existing statutory
"service" charges and imposes a statutory maximum of thirteen (13) per
cent of the amount of the loan for each thirty-day period for any and
all fees that a pawnbroker may charge, including but not limited to
service fees, storage fees, transaction fees, handling fees, insurance
fees, bookkeeping fees, recording fees and/or reporting fees. This
section of our bill also modifies the existing holding requirement of
four months to thirty (30) days, with the option to extend the holding
period up to four months upon mutual consent of the pawnbroker and the
pledgor. Also, if and when the holding period expires (plus an
additional 30-day period from the maturity date of the loan to the
default date), title to the pledged item passes to the pawnbroker.


§ 45. Book to be open to inspection (Inspection and Reporting
Requirements) - in addition to the current statutory requirement of
keeping the pawnbroker's books and records "open to the inspection of
the relevant authorities, our bill adds the requirement that, at the
end of each business day, the pawnbroker deliver to the appropriate
law enforcement official the original pawnbroker transaction forms for
each transaction occurring that day, unless other arrangements have
been agreed to between the pawnbroker and the appropriate law
enforcement official. Our bill also adds that if the law enforcement
agency supplies the appropriate software and the pawnbroker has the
computer capability, pawn transactions shall be electronically
transferred to law enforcement.

§ 46. Rate of Interest - maintains the current statutory maximum
interest rate of four (4) per cent. Accordingly, the maximum total
amount that any pawnbroker may charge for interest (4%) and any and
all fees (capped at 13% in § 44, paragraph 4) will be seventeen (17)
per cent for any thirty-day period of a loan.

§ 47-A: Collateral Loan Broker Dealing with a Child: No change from
existing General Business Law

§ 48: Sale of Unclaimed Pledge by Collateral Loan Broker - this
section would be deleted as no longer applicable, as title to the
pledged item would pass to the pawnbroker thirty days after the
maturity date of the loan.

§ 49: Notice of Such Sale; Report - this section would be deleted as
no longer applicable, as title to the pledged item would pass to the
pawnbroker thirty days after the maturity date of the loan.

§ 50: Disposition of Proceeds - this section would be deleted as no
longer applicable, as title to the pledged item would pass to the
pawnbroker thirty days after the maturity date of the loan.

§ 51: Violation of this Article - replaces local governments with the
Department of Financial Services as the entity having authority to
impose fines and penalties for violation of this Article.

§ 52: Term "Collateral Loan Broker", how to be construed: No change
from existing General Business Law

§ 53: Registration Statements - replaces the state comptroller with
the Department of Financial Services as the entity with which
pawnbrokers shall file their Collateral Loan Broker's Registration
Statements.

§ 54: Violation of Article: No change from existing General Business
Law.

§ 55: Rules and Regulations - replaces the state comptroller with the
Department of Financial Services as the entity authorized to impose
additional requirements under this Article as it may deem necessary.

JUSTIFICATION:


The provisions of the bill are two folded. First by enacting the
strict licensure provisions contained in the n w language added to the
general business law, the state can insure to the public that only
responsible and a e entities are carrying the business of pawning;
that violations of the duties pawnbrokers owe to the public with whom
the deal are severely dealt with, and that the best interests of the
state are realized by a systematic and dependable enforcement
procedure. Secondly, the statutes as altered in the bill recognize and
address the need to modernize the oversight of the business of
pawnbroking so that the public can be confident with the business with
whom they are partnering.

LEGISLATIVE HISTORY:

This is a new bill for the 2013 Session

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Considerable revenue will be realized to offset any increase in
enforcement and regulatory requirements to the benefit of the state.

EFFECTIVE DATE:

This act shall take effect immediately and shall apply to collateral
loans made on and after such date.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4115--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              March 8, 2013
                               ___________

Introduced  by  Sens.  SAVINO, ADDABBO, AVELLA -- read twice and ordered
  printed, and when printed to be committed to the Committee on Consumer
  Protection -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted  to  said  committee  --  recommitted  to  the
  Committee  on  Consumer  Protection  in accordance with Senate Rule 6,
  sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
  amended and recommitted to said committee

AN ACT to amend the general business law, in relation to collateral loan
  brokers; and to repeal certain provisions of such law relating thereto

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 40 of the general business law, as amended by chap-
ter 321 of the laws of 1983, is amended to read as follows:
  S 40. Licenses. No person,  corporation,  partnership  or  firm  shall
hereafter  carry  on  the  business  of  collateral loan broker, without
having first obtained from the [mayor of the city or licensing authority
of the local governing body where the business  is  to  be  carried  on]
DEPARTMENT  OF  FINANCIAL  SERVICES a license authorizing such person to
carry on the same in the manner and upon the conditions  stated  in  the
succeeding  sections  of  this  article.  [In  the city of New York such
license may be issued by the commissioner of consumer affairs.]  Nothing
herein  shall  be  construed  to  prohibit a collateral loan broker from
employing the title pawnbroker in connection with  the  collateral  loan
business. The title pawnbroker shall be used exclusively by a collateral
loan broker.
  S 2. Section 41 of the general business law, as amended by chapter 321
of the laws of 1983, is amended to read as follows:
  S 41. Licenses, how obtained; penalty for carrying on business without
license.  The  [mayor or such local] DEPARTMENT OF FINANCIAL SERVICES AS
licensing authority may from time to time grant, under  [his]  ITS  hand
and  the  official seal of [his] ITS office, to such citizens, or aliens

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09597-05-4

S. 4115--B                          2

lawfully admitted for permanent residence in the United States, as  [he]
IT  shall  deem  proper  and  who shall produce to [him] IT satisfactory
evidence of their good character, a license authorizing such  person  to
carry  on  the business of a collateral loan broker, which license shall
designate the house in which such person shall carry on  said  business,
and no person, corporation, partnership or firm shall carry on the busi-
ness of a collateral loan broker without being duly licensed, nor in any
other  house than the one designated in said license, under a penalty of
one hundred dollars for each day he or they shall exercise or  carry  on
said business without such license or at any other house than the one so
designated. Any person receiving such license shall pay therefor the sum
of  five hundred dollars for the use of the city yearly where such busi-
ness is to be conducted in a city with a population  of  more  than  one
million persons, and where the business is to be conducted elsewhere the
fee  for such license shall not exceed two hundred fifty dollars yearly,
and every such license shall expire one year from the date thereof,  and
may  be renewed on application to the [mayor or local licensing authori-
ty] DEPARTMENT OF FINANCIAL SERVICES each and every year on  payment  of
the  same  sum  and  upon  performance  of  the  other conditions herein
contained. Every person so licensed shall, at the time of receiving such
license, file with the [mayor or such local licensing authority] DEPART-
MENT OF FINANCIAL SERVICES granting the same a bond to the local author-
ities, to be executed by the person so licensed and by  two  responsible
sureties,  in  the  penal sum of ten thousand dollars, to be approved by
[such mayor or local licensing authority] THE  DEPARTMENT  OF  FINANCIAL
SERVICES,  which  bond shall be conditioned for the faithful performance
of the duties and obligations pertaining to the  business  so  licensed,
and  the  [mayor or such local licensing authority] DEPARTMENT OF FINAN-
CIAL SERVICES shall have full power and authority to revoke such license
for cause.
  S 3. Subdivisions 1 and 2 of section 41-a of the general business law,
as added by chapter 699 of the laws of 2006,  are  amended  to  read  as
follows:
  1.  Every person licensed as a collateral loan broker pursuant to this
article shall, between June thirtieth, two thousand seven and June twen-
ty-ninth, two thousand nine, and during every two year period  thereaft-
er, complete not less than twelve hours of continuing education instruc-
tion  offered in a course or program approved by [any mayor or licensing
authority] THE DEPARTMENT OF FINANCIAL SERVICES which  licenses  collat-
eral  loan  brokers  pursuant  to this article. In cities having a popu-
lation of one million or more,  the  commissioner  of  consumer  affairs
shall,  on  or  before January thirty-first, two thousand seven, approve
not less than one twelve hour continuing education instruction course or
program for collateral loan brokers and not less  than  one  eight  hour
continuing  education  instruction  course  or  program  for managers of
collateral loan broker businesses, as required  by  subdivision  two  of
this  section.  Every  such  course  or  program shall be made available
through at least one distance  learning  methodology,  such  as  written
materials and questionnaires, internet courses or other electronic means
and shall also be made available through seminars or workshops, commenc-
ing  on  or  before June thirtieth, two thousand seven. [Every mayor and
licensing authority] THE DEPARTMENT OF FINANCIAL SERVICES shall  consult
with one or more trade associations representing collateral loan brokers
prior  to  approving  any  continuing  education  instruction  course or
program pursuant to this section.

S. 4115--B                          3

  2. Every collateral loan broker which employs more than three  employ-
ees,  shall  designate  one  individual as the manager of the collateral
loan broker business. Upon such  designation  the  [mayor  or  licensing
authority,  which  licenses  the  collateral loan broker,] DEPARTMENT OF
FINANCIAL  SERVICES shall be provided notice by such broker of the indi-
vidual who has been designated as manager of the business.  Every  indi-
vidual  designated  as  the manager of a collateral loan broker business
shall, between June thirtieth, two thousand seven and June twenty-ninth,
two thousand nine, and during every two year period thereafter, complete
not less than eight hours of continuing education instruction  for  such
managers  offered  in  a  course  or  program  approved by [any mayor or
licensing authority which licenses collateral loan brokers  pursuant  to
this article] THE DEPARTMENT OF FINANCIAL SERVICES.
  S 4. Section 43 of the general business law, as amended by chapter 867
of the laws of 1986, is amended to read as follows:
  S  43.  Certain entries to be made in book. Every such collateral loan
broker shall keep a book in which shall be  [fairly  written]  TYPED  OR
WRITTEN  INDELIBLY AND LEGIBLY IN ENGLISH, at the time of such loan[, an
account and description of the  goods,  articles  or  things  pawned  or
pledged,  the  amount  of money loaned thereon, the time of pledging the
same, the rate of interest to be paid on such loan, the name  and  resi-
dence  of  the  person  pawning  or pledging the said goods, articles or
things and a notation of whether the pledgor claims  to  be  the  owner,
consignee or agent of the owner.]:
  1. THE NAME AND ADDRESS OF THE PAWNSHOP.
  2.  A  COMPLETE  AND  ACCURATE  DESCRIPTION  OF  THE  PLEDGED GOODS OR
PURCHASED GOODS, INCLUDING THE FOLLOWING INFORMATION, IF APPLICABLE:
  (A) BRAND NAME;
  (B) MODEL NUMBER;
  (C) MANUFACTURER'S SERIAL NUMBER;
  (D) SIZE;
  (E) COLOR, AS APPARENT TO THE UNTRAINED EYE;
  (F) PRECIOUS METAL TYPE, WEIGHT, AND CONTENT, IF KNOWN;
  (G) GEMSTONE DESCRIPTION, INCLUDING THE NUMBER OF STONES;
  (H) IN THE CASE OF FIREARMS, THE TYPE OF  ACTION,  CALIBER  OR  GAUGE,
NUMBER OF BARRELS, BARREL LENGTH, AND FINISH;
  (I) ANY OTHER UNIQUE IDENTIFYING MARKS, NUMBERS, NAMES, OR LETTERS.
  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS SUBDIVISION, IN THE CASE
OF MULTIPLE ITEMS OF A SIMILAR NATURE DELIVERED TOGETHER IN  ONE  TRANS-
ACTION  WHICH  DO  NOT  BEAR  SERIAL  OR  MODEL NUMBERS AND WHICH DO NOT
INCLUDE  PRECIOUS  METAL  OR  GEMSTONES,  SUCH  AS  MUSICAL   OR   VIDEO
RECORDINGS,  BOOKS,  AND  HAND  TOOLS,  THE  DESCRIPTION OF THE ITEMS IS
ADEQUATE IF IT CONTAINS THE QUANTITY OF ITEMS  AND  DESCRIPTION  OF  THE
TYPE OF ITEMS DELIVERED.
  3. THE NAME, ADDRESS, HOME TELEPHONE NUMBER, PLACE OF EMPLOYMENT, DATE
OF  BIRTH  AND  PHYSICAL  DESCRIPTION OF THE PLEDGOR OR SELLER, AND SUCH
OTHER FORM OR FORMS OF IDENTIFICATION AS  THE  DEPARTMENT  OF  FINANCIAL
SERVICES  SHALL PRESCRIBE PURSUANT TO ITS AUTHORITY UNDER SECTION FIFTY-
FIVE OF THIS ARTICLE.
  4. THE DATE AND TIME OF THE TRANSACTION.
  5. THE TYPE OF IDENTIFICATION ACCEPTED FROM  THE  PLEDGOR  OR  SELLER,
INCLUDING THE ISSUING AGENCY AND THE IDENTIFICATION NUMBER.
  6. IN THE CASE OF A PAWN:
  (A)  THE  AMOUNT  OF  MONEY  ADVANCED, WHICH MUST BE DESIGNATED AS THE
AMOUNT FINANCED;

S. 4115--B                          4

  (B) THE MATURITY DATE OF THE PAWN, WHICH MUST BE THIRTY DAYS AFTER THE
DATE OF THE PAWN;
  (C)  THE DEFAULT DATE OF THE PAWN, WHICH MUST BE THIRTY DAYS AFTER THE
MATURITY DATE, AND THE AMOUNT DUE ON THE DEFAULT DATE;
  (D) THE TOTAL FEE AMOUNT PAYABLE ON THE MATURITY DATE, WHICH  MAY  NOT
EXCEED  THIRTEEN  PERCENT  OF  THE AMOUNT OF THE LOAN FOR ANY THIRTY-DAY
PERIOD PURSUANT TO SUBDIVISION TWO OF SECTION FORTY-FOUR OF  THIS  ARTI-
CLE;
  (E) THE AMOUNT FINANCED PLUS THE TOTAL FEE AMOUNT THAT MUST BE PAID TO
REDEEM  THE PLEDGED GOODS ON THE MATURITY DATE, WHICH MUST BE DESIGNATED
AS THE TOTAL OF PAYMENTS;
  (F) THE ANNUAL PERCENTAGE RATE, COMPUTED ACCORDING TO THE  REGULATIONS
ADOPTED  BY THE FEDERAL RESERVE BOARD UNDER THE FEDERAL TRUTH IN LENDING
ACT; AND
  (G) THE FRONT OR BACK OF THE PAWNBROKER TRANSACTION FORM MUST  INCLUDE
A STATEMENT THAT:
  (I)  ANY  PERSONAL  PROPERTY PLEDGED TO A PAWNBROKER WITHIN THIS STATE
WHICH IS NOT REDEEMED WITHIN THIRTY DAYS FOLLOWING THE MATURITY DATE  OF
THE PAWN, IF THE THIRTIETH DAY IS NOT A BUSINESS DAY, THEN THE FOLLOWING
BUSINESS DAY, IS AUTOMATICALLY FORFEITED TO THE PAWNBROKER, AND ABSOLUTE
RIGHT, TITLE, AND INTEREST IN AND TO THE PROPERTY VESTS IN AND IS DEEMED
CONVEYED TO THE PAWNBROKER BY OPERATION OF LAW, AND NO FURTHER NOTICE IS
NECESSARY;
  (II) THE PLEDGOR IS NOT OBLIGATED TO REDEEM THE PLEDGED GOODS; AND
  (III)  IF  THE  PAWNBROKER  TRANSACTION  FORM  IS  LOST, DESTROYED, OR
STOLEN, THE PLEDGOR MUST IMMEDIATELY ADVISE THE  ISSUING  PAWNBROKER  IN
WRITING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OR IN
PERSON EVIDENCED BY A SIGNED RECEIPT.
  (IV) A PAWN MAY BE EXTENDED UPON MUTUAL AGREEMENT OF THE PARTIES.
  7.  IN  THE CASE OF A PURCHASE, THE AMOUNT OF MONEY PAID FOR THE GOODS
OR THE MONETARY VALUE ASSIGNED TO THE GOODS IN CONNECTION WITH THE TRAN-
SACTION.
  8. A STATEMENT THAT THE PLEDGOR OR SELLER OF THE ITEM  REPRESENTS  AND
WARRANTS  THAT  IT  IS  NOT STOLEN, THAT IT HAS NO LIENS OR ENCUMBRANCES
AGAINST IT, AND THAT THE PLEDGOR OR SELLER IS THE RIGHTFUL OWNER OF  THE
GOODS AND HAS THE RIGHT TO ENTER INTO THE TRANSACTION.
  S 5. Section 44 of the general business law, as amended by chapter 321
of the laws of 1983, subdivision 1 as amended by chapter 340 of the laws
of 2004, subdivision 2 as amended by chapter 594 of the laws of 1997 and
subdivision  3 as amended by chapter 867 of the laws of 1986, is amended
to read as follows:
  S 44. Memorandum to be given. 1. Every  such  collateral  loan  broker
shall at the time of each loan deliver to the person pawning or pledging
any goods, article or thing, a memorandum or note signed by him contain-
ing  the  substance  of the entry required to be made in his book by the
last preceding section.
  2. Notwithstanding any general or special  statutes,  local  laws  and
ordinances  to the contrary, no collateral loan broker shall ask, demand
or receive [a service charge greater than ten dollars for loans equal to
or greater than five hundred dollars, or seven dollars for  loans  equal
to  or  greater  than  one  hundred  dollars  but less than five hundred
dollars for any such memorandum or note, provided that  for  loans  less
than  one hundred dollars a service charge not greater than four dollars
may be imposed] ANY FEE, INCLUDING BUT  NOT  LIMITED  TO  SERVICE  FEES,
STORAGE FEES, TRANSACTION FEES, HANDLING FEES, INSURANCE FEES, BOOKKEEP-
ING  FEES,  RECORDING  FEES OR REPORTING FEES, WHICH, INDIVIDUALLY OR IN

S. 4115--B                          5

COMBINATION, EXCEEDS A TOTAL AMOUNT EQUAL TO  THIRTEEN  PERCENT  OF  THE
AMOUNT  OF  THE  LOAN FOR THE FIRST THIRTY DAYS, AND THIRTEEN PERCENT OF
THE AMOUNT OF THE LOAN FOR EACH THIRTY DAYS OR PORTION THEREOF  IF  SUCH
LOAN IS EXTENDED BEYOND THIRTY DAYS UPON MUTUAL CONSENT OF THE PAWNBROK-
ER  AND  THE PLEDGOR. ACCORDINGLY, THE TOTAL AMOUNT CHARGED BY ANY PAWN-
BROKER FOR INTEREST (CAPPED AT A MAXIMUM  OF  FOUR  PERCENT  IN  SECTION
FORTY-SIX  OF THIS ARTICLE) AND THE TOTAL OF ANY AND ALL FEES (CAPPED AT
A MAXIMUM OF THIRTEEN PERCENT IN THIS SECTION) SHALL NOT  EXCEED  SEVEN-
TEEN  PERCENT  OF  THE AMOUNT OF THE LOAN FOR THE FIRST THIRTY DAYS, AND
SEVENTEEN PERCENT OF THE AMOUNT OF THE LOAN  FOR  EACH  THIRTY  DAYS  OR
PORTION  THEREOF IF SUCH LOAN IS EXTENDED BEYOND THIRTY DAYS UPON MUTUAL
CONSENT OF THE PAWNBROKER AND THE PLEDGOR. THE TOTAL AMOUNT  CHARGED  BY
THE  PAWNBROKER  FOR  INTEREST AND FOR ANY AND ALL FEES SHALL BE CLEARLY
AND PLAINLY WRITTEN ON THE MEMORANDUM OR NOTE.
  3. The holder of such memorandum or note shall be presumed to  be  the
person  entitled  to  redeem  the  pledge and the collateral loan broker
shall deliver such article to the person so presenting  such  memorandum
or  note  on  payment  of principal [and], interest AND ANY LAWFUL FEES.
Should such ticket be lost or mislaid the [pawnor] PLEDGOR shall at once
apply to the collateral loan broker, in which case it shall be the  duty
of  the  collateral  loan  broker  to  permit such person to examine his
books, and on finding the entry for said ticket, note or  memorandum  so
lost  and  upon  his  giving  to  the  collateral  loan  broker an exact
description of the article pawned the collateral loan broker shall issue
a second or stop ticket for the same, provided such person shall furnish
to the collateral loan broker a lost instrument bond in an amount  equal
to  the  fair  market  value of the pledge or, in the alternative, pay a
lost ticket charge of one percent of the amount of  the  loan,  or  five
dollars, whichever is greater. In case such [pawnor] PLEDGOR neglects to
so  apply  and examine said books and receive such memorandum or note in
the manner above stated, the collateral loan broker  will  be  bound  to
deliver  the  pledge to any person producing such ticket for the redemp-
tion thereof.  This article is not to be  construed  as  in  any  manner
limiting or affecting such collateral loan broker's common law liability
in cases where goods are stolen or other legal defects of title exist in
the pledgor.
  [2.] 4. In addition to the information required to be furnished pursu-
ant  to  subdivision one of this section a pawn ticket shall contain the
following notice:
                           NOTICE OF ELECTION
  (a) [The holder of this ticket may redeem the article pledged  at  any
time  prior  to  sale  at private sale or public auction first following
default.  The article pledged may not be sold at private sale or auction
until it has remained  four  months  in  the  collateral  loan  broker's
possession.
  (b)  If the article pledged is sold at private sale or public auction,
money, if any, in excess of the amount of  the  loan,  interest,  lawful
auctioneer's  commission,  if  applicable, lawful extra care charges and
the expenses of the advertisement of sale, if applicable, shall be  paid
to the holder of the pawn ticket.
  (c)  If  the collateral loan broker shall purchase the article pledged
at auction the holder shall have an additional ten days  to  redeem  the
article  pledged  by  paying to the collateral loan broker the amount of
the loan, interest, lawful auctioneer's commission,  lawful  extra  care
charges and the expense of the advertisement of sale.

S. 4115--B                          6

  (d)  A  holder may sell this ticket to a third party at any time prior
to private sale or auction, or he may sell this ticket to the collateral
loan broker any time ninety or more days after the article was pledged.
  (e)  If this ticket is sold to a collateral loan broker the holder may
redeem the ticket within ten days after the sale by paying to the colla-
teral loan broker the amount paid for the ticket]  THE  HOLDER  OF  THIS
TICKET  MAY REDEEM THE ARTICLE PLEDGED AT ANY TIME PRIOR TO DEFAULT, THE
DATE OF DEFAULT BEING THIRTY DAYS AFTER THE MATURITY DATE OF  THE  PAWN.
ANY PERSONAL PROPERTY PLEDGED TO A PAWNBROKER WITHIN THIS STATE WHICH IS
NOT REDEEMED WITHIN THIRTY DAYS FOLLOWING THE MATURITY DATE OF THE PAWN,
IF  THE THIRTIETH DAY IS NOT A BUSINESS DAY, THEN THE FOLLOWING BUSINESS
DAY, IS AUTOMATICALLY FORFEITED TO THE PAWNBROKER, AND  ABSOLUTE  RIGHT,
TITLE,  AND  INTEREST  IN  AND  TO  THE  PROPERTY VESTS IN AND IS DEEMED
CONVEYED TO THE PAWNBROKER BY OPERATION OF LAW, AND NO FURTHER NOTICE IS
NECESSARY.
  (B) THE MATURITY DATE OF THE PAWN IS THE DATE THIRTY  DAYS  AFTER  THE
DATE  OF THE PAWN TRANSACTION, PROVIDED THAT IF THE THIRTIETH DAY IS NOT
A BUSINESS DAY, THEN THE FOLLOWING BUSINESS DAY IS  THE  MATURITY  DATE.
HOWEVER,  THE  MATURITY DATE OF THE PAWN MAY BE EXTENDED TO A MAXIMUM OF
FOUR MONTHS FROM THE DATE OF THE PAWN TRANSACTION,  BUT  ONLY  UPON  THE
MUTUAL CONSENT OF THE PAWNBROKER AND THE PLEDGOR.
  (C)  A  HOLDER MAY SELL THIS TICKET TO A THIRD PARTY AT ANY TIME PRIOR
TO DEFAULT, OR HE MAY SELL THIS TICKET TO THE COLLATERAL LOAN BROKER ANY
TIME NINETY OR MORE DAYS AFTER THE ARTICLE WAS PLEDGED, SO LONG AS  SUCH
TIME IS PRIOR TO DEFAULT.
  [3.] 5. Notwithstanding any general, special or local law or ordinance
to  the  contrary, if a collateral loan broker in good faith and without
knowledge extends credit  on  a  loan,  the  collateral  for  which  was
entrusted  to  the pledgor on consignment or was entrusted by a merchant
dealing in goods of the kind pledged to the pledgor who was  a  merchant
dealing  in  goods of the kind pledged, the collateral loan broker shall
be required to relinquish the collateral to the legal owner provided the
amount of the loan [and], interest due [is] AND ANY LAWFUL FEES paid.
  S 6. Section 45 of the general business law, as amended by chapter 321
of the laws of 1983, is amended to read as follows:
  S 45. Book to be open to inspection. 1. The said book and any and  all
other  books  and  records regularly kept by such collateral loan broker
shall at all reasonable times be open to the inspection of the  attorney
general,  THE DEPARTMENT OF FINANCIAL SERVICES AS THE LICENSING AUTHORI-
TY, the state comptroller, the  mayor  or  local  [licensing  authority]
GOVERNMENT OFFICIALS, all judges of the criminal courts, the superinten-
dent  of  police,  police  inspectors,  captains  of  police  and police
justices of such cities, or any or either of them, or of any person  who
shall be duly authorized in writing for that purpose by any or either of
them,  and  who  shall exhibit such written authority to such collateral
loan broker. The [mayor or the licensing authority of any local  govern-
ing  body]  DEPARTMENT OF FINANCIAL SERVICES, the state comptroller, the
attorney general, THE MAYOR OR LOCAL GOVERNMENT OFFICIALS and any person
duly authorized by them shall have the power to administer oaths and  to
examine  under  oath  any such collateral loan broker or any officer, or
agent, of such collateral loan broker and any other person having custo-
dy or control of such books and records. Such books and records shall be
retained in the possession of the collateral loan broker, in good condi-
tion and in an orderly fashion for at least a period of six years.
  2. ON OR BEFORE THE END OF EACH  BUSINESS  DAY,  THE  PAWNBROKER  MUST
DELIVER  TO  THE APPROPRIATE LAW ENFORCEMENT OFFICIAL THE ORIGINAL PAWN-

S. 4115--B                          7

BROKER TRANSACTION FORMS FOR EACH OF THE TRANSACTIONS  OCCURRING  DURING
THE  PREVIOUS  BUSINESS  DAY, UNLESS OTHER ARRANGEMENTS HAVE BEEN AGREED
UPON BETWEEN THE PAWNBROKER AND THE APPROPRIATE  LAW  ENFORCEMENT  OFFI-
CIAL.
  3.  IF THE APPROPRIATE LAW ENFORCEMENT AGENCY SUPPLIES THE APPROPRIATE
SOFTWARE AND THE PAWNBROKER PRESENTLY HAS  THE  COMPUTER  ABILITY,  PAWN
TRANSACTIONS  SHALL BE ELECTRONICALLY TRANSFERRED TO THE APPROPRIATE LAW
ENFORCEMENT OFFICIAL.
  S 7. Section 46 of the general business law, as amended by chapter 651
of the laws of 2005, is amended to read as follows:
  S 46. Rate of interest. 1.  Notwithstanding  any  general  or  special
statutes,  local laws and ordinances to the contrary, no collateral loan
broker shall ask, demand or receive any greater rate  of  interest  than
four  [per  centum per month, or any fraction of a month, and a] PERCENT
OF THE AMOUNT OF THE LOAN FOR THE FIRST THIRTY DAYS, AND FOUR PERCENT OF
THE AMOUNT OF THE LOAN FOR EACH THIRTY DAYS OR PORTION THEREOF  IF  SUCH
LOAN IS EXTENDED BEYOND THIRTY DAYS UPON MUTUAL CONSENT OF THE PAWNBROK-
ER AND THE PLEDGOR. A notice containing a list of such rates of interest
as  herein  provided and in accordance with the act of congress entitled
"Truth in Lending Act" and the regulations thereunder, as such  act  and
regulations  may  from  time  to  time be amended shall be conspicuously
displayed within the premises of such collateral loan broker. A  minimum
interest charge of twenty-five cents per month may be made on any loan.
  2.  No  collateral  loan  broker  shall  receive or be entitled to any
interest or [charges] LAWFUL FEES as provided by  this  article  on  any
loan [for any] OF A period of time exceeding [fifteen] FOUR months [from
the date of the making of such loan], provided however that where a loan
is  extended  at  the direct request of the pledgor, the collateral loan
broker may receive and be entitled to  any  interest  [or  charges]  AND
LAWFUL  FEES provided by this article on such loan [for any] OF A period
of time not to exceed [fifteen] FOUR  months  [from  the  date  of  such
extension].
  S 8. Sections 48, 49 and 50 of the general business law are REPEALED.
  S 9. Section 51 of the general business law, as amended by chapter 321
of the laws of 1983, is amended to read as follows:
  S  51.  Violation  of this article. The [mayor or local] DEPARTMENT OF
FINANCIAL SERVICES AS THE licensing authority so licensing such  collat-
eral  loan broker shall have full power and authority after a hearing to
impose fines and penalties of not less than twenty-five dollars nor more
than one hundred dollars upon persons offending against any of the fore-
going provisions of this article for each and every  offense,  excepting
sections forty and forty-one, and may also suspend or revoke the license
of  the  collateral loan broker willfully violating any of the aforesaid
provisions.
  S 10. The opening paragraph and subdivisions f, h and i of section  53
of  the  general  business law, as amended by chapter 321 of the laws of
1983, are amended to read as follows:
  After September first, nineteen hundred sixty, no person, corporation,
partnership, firm or association shall carry on the business of  collat-
eral  loan  broker  within  the  state of New York unless and until such
collateral loan broker shall have caused to be filed in  the  office  of
the  [state  comptroller]  DEPARTMENT  OF  FINANCIAL SERVICES upon forms
prescribed by  [him]  IT  a  statement,  duly  verified  as  hereinafter
provided,  to  be known as "Collateral Loan Broker's Registration State-
ment" containing:

S. 4115--B                          8

  f. In the event that after any collateral loan broker shall have filed
a statement as above, any change shall take place in  the  personnel  of
the  partners, principals, officers or in the location of the principal,
such collateral loan broker shall file a statement with the [state comp-
troller]  DEPARTMENT  OF FINANCIAL SERVICES to be known as a "Collateral
Loan Broker's Supplemental Registration  Statement",  duly  verified  as
hereinafter provided, setting forth in full the details thereof.
  h.  The  [state  comptroller]  DEPARTMENT OF FINANCIAL SERVICES may in
[his] ITS discretion adopt forms for the use of collateral loan  brokers
for  filing  any  statement  with  [his]  ITS department pursuant to the
provisions of this section and furnish such  forms  to  collateral  loan
brokers  without charge or fee therefor. The [state comptroller] DEPART-
MENT OF FINANCIAL SERVICES shall collect the following fees:
  For filing each "Collateral  Loan  Broker's  Registration  Statement",
five  dollars;  for  filing  each "Collateral Loan Broker's Supplemental
Statement", two dollars and fifty cents.
  The fees herein enumerated shall be payable at the time of filing  and
no  filing  shall be deemed effective within the meaning of this section
until such fees have been paid.
  i. Whenever a collateral loan broker shall have filed any registration
statement or supplemental registration statement required  to  be  filed
under  the  provisions  of  this  section or shall have prepared in such
registration statement or supplemental registration statement  and  have
forwarded  the  same together with the fees required by subdivision h of
this section, postage prepaid and properly addressed, to [the office  of
the state comptroller in Albany] ONE OF THE OFFICES OF THE DEPARTMENT OF
FINANCIAL SERVICES, WHICH OFFICES ARE LOCATED IN NEW YORK CITY, MINEOLA,
ALBANY,  BUFFALO AND SYRACUSE, NEW YORK, such collateral loan broker, as
to the filing of such collateral loan broker's statement or supplemental
registration statement  shall  be  deemed  to  have  complied  with  the
requirements of this section.
  S  11.  Section  55 of the general business law, as amended by chapter
321 of the laws of 1983, is amended to read as follows:
  S 55. Rules and regulations. The  [state  comptroller]  DEPARTMENT  OF
FINANCIAL  SERVICES  AS  THE  LICENSING  AUTHORITY UNDER THIS ARTICLE is
hereby authorized and empowered to require the  keeping  of  such  addi-
tional books, records, entries and reports as [he] IT may deem necessary
[and to determine the amount of the surplus payable as abandoned proper-
ty in the event of non-compliance with the provisions of this article].
  S 12. This act shall take effect immediately and shall apply to colla-
teral loans made on and after such date.

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