Chapter 077, Collateral Loan Brokers

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Chapter 77, Collateral Loan Brokers

§ 77-1. Definitions

As used in this chapter, the following terms shall have the meanings indicated:

COLLATERAL LOAN BROKER -- Includes any person loaning money on deposit or pledge of personal property, other than securities or printed evidence of indebtedness, dealing in the purchase of personal property on condition of selling back at a stipulated price or designated or doing business as a furniture storage warehouseman and loaning and advancing money upon goods, wares or merchandise pledged or deposited as collateral security.

§ 77-2. License required

No person, either as principal, agent or employee, shall, within the limits of the village, establish, engage in or carry on the business of collateral loan broker, either separately or in connection with some other business, without first having obtained and paid for and having in full force and effect a license as herein provided.

§ 77-3. Application for license

Every person desiring to procure a license, as herein provided, shall file with the Village Clerk a written application, setting forth the names and residences of the applicant if an individual and the names and residences of each member or officer if the applicant is an association or corporation.

A Such application shall also describe in detail the character of the business in which he, they or it are now engaged or thereafter desire to engage in, and, in addition, such application shall also state the following:

(1) Whether the applicant or any member or officer or employee of the partnership, firm, association or corporation have ever been convicted of a felony or misdemeanor and, if so, what offense, when and in what court.

(2) The premises where such business is to be located or carried on, giving street and number.

B Such application shall be signed and acknowledged before a notary public or other official authorized to administer oaths.

Chapter 77, Collateral Loan Brokers

§ 77-4. Bond

Such application shall be accompanied by a bond to the Village of Ilion, approved as to form by the Village Attorney, in the penal sum of ten thousand dollars ($10,000.) with sufficient security or sureties or sufficient collateral security, conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed, the due observance during the term of the license of any and all ordinances and laws which are now in force or may hereafter be adopted or enacted respecting the business of collateral loan broker as defined in § 77-1 and the accounting for and paying over of all moneys which he shall be liable to pay as such collateral loan broker to the Village of Ilion or any person.

§ 77-5. Licenses

A Upon the filing of the application, bond and information as provided in the previous sections and the payment of the license fee hereinafter provided, the Village Clerk may issue to the applicant a license to engage in the business of collateral loan broker.

B No license shall be refused except for a specific reason and for the protection of the public safety, good order and morals.

C All licenses shall be numbered in the order in which they are issued and shall state clearly the location of the place of business in which the person receiving such license shall be authorized to establish, engage in and carry on the business; the dates of issuance and expiration of the license; the fee paid; and the name and address of the licensee.

D No applicant to whom a license has been refused shall make further application until a period of at least three (3) months shall have elapsed since the last previous rejection, unless he can show that the reason for such rejection no longer exists.

§ 77-6. License fee

Every collateral loan broker as defined in § 77-1 shall pay an annual license fee as determined by resolution of the Village Board for each established place of business. All licenses issued shall continue in force until January 1 next succeeding the issuance thereof, unless sooner revoked.

§ 77-7. Transferability of license

No license shall be used by any person other than the original licensee, and any holder of such license who permits it to be used by any other person and any person who uses such license granted to any other person shall be guilty of a violation of this chapter.

§ 77-8. Loss or destruction of license

A Whenever a license shall be lost or destroyed without fault on the part of the holder or his agent or employee, a duplicate license in lieu thereof under the original application and bond may be issued by the Village Clerk, in his discretion, upon the filing with him of an affidavit by the licensee setting forth the circumstances of the loss and what, if any, search has been made for its recovery.

B No person shall destroy, deface or injure a license in any manner or change the name, number of dates thereon.

§ 77-9. Revocation of license

The Mayor may, at any time after a hearing for such cause as he deems sufficient, revoke any license granted under the provisions of this chapter. Whenever any license shall be so revoked, no refund of any unearned portion thereof shall be made, and no license shall be granted to any person whose license has been revoked within a period of one (1) year from the date of such revocation. Notice of such revocation shall be served by the Village Clerk upon the person named in the application by mailing the same to the address given in the application.

§ 77-10. Changing place of business

If any licensee shall move his place of business from the place designated in the license, he shall immediately give notice to the Village Clerk and have the same endorsed on the license.

§ 77-11. Report to police; police records

A It shall be the duty of every licensed collateral loan broker to make or cause to be made to the Chief of Police or his representative every day, except Sunday, before the hour of 12:00 noon, a copy of the record required to be kept in § 77-12, except the name, address and description of the person pawning or pledging, of every article upon which he has made a loan during the preceding day or, if that is Sunday, the two (2) next preceding days, together with the memorandum or note issued therefor. All reports required in this section shall be signed at the end by the licensee or his representative.

B The Chief of Police shall cause a record to be kept of all such reports, showing the date and time of receipt of each report, the name of the licensee making the report and his address. If any such article so pawned or pledged shall be found to have been stolen, then the collateral loan broker or person doing such collateral loan broking business shall, upon request of the Chief of Police or person authorized by him, report, in writing, the name, residence and description of the person pledging such article. The contents of such reports shall not be communicated to any person for the purpose of publication but shall be used by the Chief of Police and others in authority to protect the public interest and detect criminals.

§ 77-12. Records of collateral loan broker

Every licensed collateral loan broker shall keep a substantially bound book in which shall be legibly written in ink and in English, at the time of making a loan, an account and description of the goods, articles or things pawned or pledged, including the number or numbers of any monograms, inscription or other marks of identification that may appear thereon, the amount loaned thereon, the time and day of the loan and its maturity, the rate of interest paid on such loan and the name, general description and residence of the person pawning or pledging such goods, articles or things. Such book and all articles pawned or pledged shall at all reasonable times be open to the inspection of any police officer, to any Justice of the village or to any person duly authorized, in writing, for such purpose by the Village Clerk who shall exhibit such written authority to the collateral loan broker. No entry in such book shall be erased, obliterated, altered or defaced.

§ 77-13. Memorandum of receipt; liability

A Every licensed collateral loan broker shall, at the time of each loan, deliver to the person pawning or pledging any goods, articles or things a memorandum or note signed by him containing his address and the substance of the entry required to be made in his book by the last preceding section, and no charge shall be made or received by any collateral loan broker for any such entry, memorandum or note.

B 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.

C Should such memorandum or note be lost or mislaid, the pawner 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 such memorandum or note so lost and upon 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.

D In case such pawner neglects to so apply and examine such books, the collateral loan broker shall be exonerated for delivering the pledge to any person producing such memorandum or note for redemption thereof.

E This section 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 pledge.

§ 77-14. Rate of interest; storage charge prohibited

A No collateral loan broker shall ask, demand or receive any greater rate of interest than three percent (3%) 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 the "Truth in Lending Act" (15 U.S.C.A. § 1601 et seq.) 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 ($0.25) per month may be made on any loan.

B No collateral loan broker shall receive or be entitled to any interest or charges as provided by this section on any loan for any period of time exceeding fifteen (15) months from the date of the making of such loan; provided, however, that where a loan is extended at the direct request of the pledger, the collateral loan broker may receive and be entitled to any interest or charges provided by this section on such loan for any period of time not to exceed fifteen (15) months from the date of such extension.

C No collateral loan broker shall make any charge for packing, storing, keeping, insuring or caring for any article, goods or things pledged or upon which a loan has been made, and said rates of interest shall be in full satisfaction of all charges thereon.

§ 77-15. Sale of unclaimed pledge

The sale, procedure and disposition of proceeds shall be conducted in accordance with the provisions of General Business Law §§ 48, 49 and 50.

§ 77-16. Restrictions

No collateral loan broker shall:

A Purchase any secondhand furniture, metals, clothing or other article or thing whatever offered to him as a pawn or pledge, nor shall it be lawful for any such pawnbroker to engage in any secondhand business.

B Permit the redemption of any article received by him in pawn until forty-eight (48) hours after the same has been received by him in pawn.

C Deliver to the borrower a plain and complete receipt for all payments on account at the time such payments are made.

D Carry on business at any other place than the one designated in his license.

E Continue to carry on business after his license is revoked or shall have expired.

F Receive any goods in pledge from any person who shall be or shall be known to such collateral loan broker, his agents, servants and employees to be under the age of eighteen (18) years or who is intoxicated or mentally incompetent.

G Employ any person to receive pledges or to make loans thereon who is under the age of sixteen (16) years.

H Receive any pledges or make loans thereon on Sunday.

I Receive in pawn any pistol, revolver or other firearm of a size which may be concealed upon the person.

§ 77-17. Penalties for offenses

Any person committing an offense against any provision of this chapter shall be guilty of a violation and, upon conviction thereof, shall be punishable for each offense by a fine of not more than two hundred fifty dollars ($250.) or by imprisonment for not more than fifteen (15) days, or both.