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This entry was published on 2014-09-22
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SECTION 44
Memorandum to be given
General Business (GBS) CHAPTER 20, ARTICLE 5
§ 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
containing the substance of the entry required to be made in his book by
the last preceding section. 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. 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. Should such ticket be lost or mislaid the pawnor 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 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 redemption 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. In addition to the information required to be furnished pursuant 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.

(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
collateral loan broker the amount paid for the ticket.

3. 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 paid.