ORS Chapter 726 - Oregon Statutes

Chapter 726 — Pawnbrokers

 

2009 EDITION

 

 

PAWNBROKERS

 

CREDITUNIONS; LENDING INSTITUTIONS; PAWNBROKERS

 

GENERALPROVISIONS

 

726.010     Definitions

 

726.020     Shorttitle; application of chapter

 

726.030     Constructionof chapter

 

LICENSING

 

726.040     Pawnbrokerlicense required

 

726.050     Requirementsfor issuance of license

 

726.060     Applicationfor license; contents; fee

 

726.070     Applicantto furnish bond or letter of credit; actions on bond or letter of credit

 

726.075     Groundsfor denial of license

 

726.080     Issuanceand denial of license

 

726.090     Formof license; posting; transferability

 

726.100     Additionallicenses to same applicant

 

726.110     Changeof place of business

 

726.125     Licensefees; fees for extra service

 

726.130     Annualreport of licensee

 

726.150     Revocationand suspension of license

 

726.155     Procedurefor license denial, revocation or suspension

 

726.170     Reinstatementand reissue of license; fee

 

726.180     Expirationof license; effect of revocation, suspension or surrender of license

 

726.190     Surrenderof license

 

726.250     Investigationsand examinations; cost

 

726.255     Investigationof pawnbrokers; oaths; witnesses; subpoenas; depositions

 

REGULATION

 

726.260     Rulesand rulings

 

726.270     Prohibitedtransactions

 

726.280     Registerand records of licensee

 

726.285     Recordsof transactions by pawnbroker; delivery of copies to local police agency

 

726.290     Signingof card, stub or record by pledgor

 

726.300     Contentsof pawn ticket; effect

 

726.310     Holderpresumed entitled to redeem

 

726.320     Redemptionby mail

 

726.330     Deliveryof pledge upon surrender of pawn ticket

 

726.340     Loss,destruction or theft of pawn ticket; affidavit; liability

 

726.350     Alteration

 

726.360     Spuriouspawn tickets

 

726.370     Multipleclaimants of pledge; interpleader

 

726.380     Lossof or injury to pledge; lien on pledge

 

726.390     Interestrates and charges

 

726.395     Chargesrelated to firearms

 

726.400     Loanperiod; renewal; forfeiture of pledge; notice; period for redeeming pledge

 

726.410     Recordof forfeited pledges

 

726.420     Effectof charging excessive interest or fees

 

726.440     Enforcementorders

 

726.450     Trackingpledged articles; use of system; fee

 

PENALTIES

 

726.910     Civilpenalties

 

726.990     Criminalpenalties

 

GENERALPROVISIONS

 

      726.010Definitions.As used in this chapter, unless the context requires otherwise:

      (1)“Director” means the Director of the Department of Consumer and BusinessServices.

      (2)“Pawnbroker” means any person, copartnership, association or corporation:

      (a)Lending money at a higher rate of interest than 10 percent per annum on thedeposit or pledge of personal property other than choses in action, vehiclesrequired by law to be registered with the Department of Transportation,securities or printed evidences of indebtedness;

      (b)Purchasing any personal property other than choses in action, vehicles requiredby law to be registered with the Department of Transportation, securities orprinted evidences of indebtedness on the direct or implied condition of sellingit back at a stipulated price that would amount to the payment of interest orconsideration in excess of 10 percent per annum; or

      (c)Doing business as storage warehouseman and lending money at a higher rate ofinterest than 10 percent per annum upon goods, wares, merchandise or personalproperty pledged or deposited as collateral security other than vehiclesrequired by law to be registered with the Department of Transportation.

      (3)“Pledge” means any article deposited with a pawnbroker in the course of thebusiness of the pawnbroker as defined in subsection (2) of this section.

      (4)“Pledgor” means the person who delivers a pledge into the possession of apawnbroker, unless the person discloses that the person is or was acting foranother, in which event “pledgor” means the disclosed principal.

      (5)“Pledge loan” means a loan made by a pawnbroker to a pledgor and secured by apledge. [Amended by 1971 c.168 §1; 1985 c.762 §135; 1987 c.373 §71; 1993 c.744 §27]

 

      726.020Short title; application of chapter. This chapter shall be known as thePawnbrokers Act. It is applicable to any person who qualifies under itsprovisions, and to such other person as shall by violating any of itsprovisions be subject to the penalties provided in ORS 726.990.

 

      726.030Construction of chapter. Nothing in this chapter shall be construed or heldto limit the rights, powers or privileges granted to any person by any law ofthis state or of the United States whereby the loaning of money or extending ofcredit is regulated, provided, that such person is operating in compliance withthe provisions of such law.

 

LICENSING

 

      726.040Pawnbroker license required. No person shall engage or continue inthe business of a pawnbroker, or use any assumed business name or advertisingthat in any way would lead the public to believe the person is a licensedpawnbroker, except as authorized by this chapter and without first procuring alicense from the Director of the Department of Consumer and Business Servicesas provided in this chapter. [Amended by 1979 c.202 §1]

 

      726.050Requirements for issuance of license. The Director of the Department ofConsumer and Business Services may not issue a license to a corporation,limited liability company or limited liability partnership or to a person usingan assumed business name unless:

      (1)The limited liability company or limited liability partnership has filed therequired documents under ORS chapter 63 or 67;

      (2)The person using the assumed business name has registered the name under ORSchapter 648; or

      (3)The corporation is an Oregon corporation in good standing or a foreigncorporation legally qualified to do business in this state. [Amended by 2007c.360 §1]

     

      726.060Application for license; contents; fee. (1) An application for the licenseshall be in writing in a form prescribed by the Director of the Department ofConsumer and Business Services.

      (2)The application shall contain:

      (a)If the applicant is an individual, the name and both the residence and businessaddresses of the applicant;

      (b)If the applicant is a partnership or association, the name and both theresidence and business addresses of every member of the partnership orassociation;

      (c)If the applicant is a corporation, the name and both the residence and businessaddresses of each officer and director of the corporation;

      (d)The county and city with street and number, if any, where the business is to beconducted; and

      (e)Any other information that the director may require.

      (3)The applicant at the time of making application for the applicant’s firstlicensed location in this state shall pay to the director a nonrefundableapplication fee of $500. [Amended by 1971 c.218 §1; 1985 c.762 §136; 1997 c.842§1; 2007 c.360 §2]

 

      726.070Applicant to furnish bond or letter of credit; actions on bond or letter ofcredit.(1) A bond in the sum of $25,000 executed by the applicant as obligor, togetherwith a surety company authorized to do business in this state as surety or anirrevocable letter of credit issued by an insured institution as defined in ORS706.008 in the amount of $25,000 shall accompany the application and bemaintained by the pawnbroker licensee with the Director of the Department ofConsumer and Business Services. This bond or letter of credit shall be executedto the State of Oregon and for the use of the state and of any person who mayhave a cause of action against the obligor of the bond or the letter of creditissuer under this chapter. The bond or letter of credit shall be conditionedthat the obligor will faithfully conform to and abide by the provisions of thischapter and of all rules and regulations lawfully made by the director underthis chapter, and will pay to the state and to any such person any and allmoneys that may become due or owing to the state or to such person from theobligor under and by virtue of the provisions of this chapter. The AttorneyGeneral shall approve the form of any bond or letter of credit that may beaccepted by the director under this section.

      (2)If any person is aggrieved by the misconduct of a pawnbroker or by thepawnbroker’s violation of any law and recovers judgment therefor, the personmay, after the return unsatisfied either in whole or in part of any executionissued upon the judgment, maintain an action for the person’s own use upon thebond or letter of credit of the pawnbroker in any court having jurisdiction ofthe amount claimed. The director shall furnish to anyone applying therefor, acertified copy of any such bond or letter of credit filed with the director.The certified copy is prima facie evidence in any court that the bond or letterof credit was duly executed and delivered by each pawnbroker whose name appearson the bond or letter of credit. [Amended by 1971 c.218 §2; 1979 c.202 §2; 1991c.331 §125; 1993 c.18 §155; 1997 c.631 §544; 2003 c.176 §1; 2007 c.360 §3]

 

      726.075Grounds for denial of license. The Director of the Department ofConsumer and Business Services may not grant a license to engage in thebusiness of pawnbroker to any person if any person named in the applicationsubmitted pursuant to ORS 726.060:

      (1)Is insolvent, either in the sense that the person’s liabilities exceed theperson’s assets or that the person cannot meet obligations as they mature, oris in such financial condition that the person cannot continue in business withsafety to the person’s customers;

      (2)Has engaged in dishonest, fraudulent or illegal practices or conduct in anybusiness or profession;

      (3)Has willfully or repeatedly violated or failed to comply with a provision ofthe Oregon Bank Act, the Oregon Credit Union Act, the Oregon Consumer FinanceAct or the Pawnbrokers Act, or any administrative rule or order adopted underan Act identified in this subsection;

      (4)Has been convicted of a crime, an essential element of which is fraud;

      (5)Is not qualified to conduct a pawnbroker business on the basis of such factorsas training, experience and knowledge of the business;

      (6)Is permanently or temporarily enjoined by a court of competent jurisdictionfrom engaging in or continuing any conduct or practice involving an aspect ofthe pawnbroker business;

      (7)Is the subject of an order of the director, subjecting the person to a fine orother civil penalty, or removing the person from an office in an entityregulated by either director; or

      (8)Is the subject of an order that was issued by the regulatory authority ofanother state or of the federal government with authority over such bankinginstitutions, credit unions, consumer finance companies or savingsassociations, that was entered within the past five years and that subjects theperson to a fine or other civil penalty or removes the person from an office ina state banking institution, a national bank, a state or federal savingsassociation, a state or federal credit union or a consumer finance company. [1977c.135 §55; 1985 c.762 §137; 2009 c.541 §47]

 

      726.080Issuance and denial of license. (1) Conditioned upon the applicant’scompliance with this chapter, the payment of the license fee and the filing ofa bond or letter of credit on a form approved by the Attorney General, and inthe absence of any reason or condition that in the judgment of the Director ofthe Department of Consumer and Business Services might warrant the refusal ofthe granting of a license, including the reasons set out in ORS 726.075, thedirector shall issue a license within 45 days after the date a completeapplication was received.

      (2)If the application is denied, the director shall indorse on the applicationwith the date the word “Disapproved” and shall immediately advise the applicantby registered mail or by certified mail with return receipt of the reason forthe denial. [Amended by 1971 c.218 §3; 1977 c.135 §56; 1991 c.249 §69; 2007c.360 §4]

 

      726.090Form of license; posting; transferability. The licenses shall be in a formprescribed by the Director of the Department of Consumer and Business Servicesand shall state the address at which the business is to be conducted and thefull name of the pawnbroker. The license shall be kept conspicuously posted inthe place of business of the pawnbroker and shall not be transferable orassignable. [Amended by 1971 c.218 §4]

 

      726.100Additional licenses to same applicant. No pawnbroker shall transact anybusiness within the scope of this chapter except under the name at the place ofbusiness named in the license. The Director of the Department of Consumer andBusiness Services may issue more than one license to the same pawnbroker uponthe pawnbroker’s compliance with all the provisions of this chapter governingan original issuance of a license for each such additional license. Eachadditional license shall be for a separate and distinct place of business forthe making and completing of pledge loans as provided in this chapter.

 

      726.110Change of place of business; fee. Whenever a pawnbroker changes the placeof business to another location within the same city or town, the pawnbrokershall at once give written notice of the change to the Director of theDepartment of Consumer and Business Services and shall surrender the pawnbroker’slicense for cancellation. Thereupon a new license shall be issued by thedirector for the new location. A change in the place of business of apawnbroker to a location outside of the city or town named in the originallicense is not permitted under the same license. [Amended by 1971 c.218 §5;2007 c.360 §5]

 

      726.120 [Amended by1971 c.218 §6; repealed by 1985 c.762 §196]

 

      726.125License fees; fees for extra service. (1) Each pawnbroker shall pay to theDirector of the Department of Consumer and Business Services each year thelicense fee determined by the director under subsection (2) of this section.

      (2)The director may charge and collect a license fee from each pawnbroker,according to a license fee schedule established by the director by rule, forthe purpose of defraying the costs of performing supervision, enforcement andother duties imposed by law upon the director in respect to pawnbrokers. Insetting the license fee schedule and allocating license fees among pawnbrokers,the director shall take into consideration the costs of performing the dutiesof the director relative to each pawnbroker, the amount of all other moneyspaid to the director under this chapter and the cost of developing andmaintaining a reasonable emergency fund. License fees under this subsectionshall be assessed and paid upon approval of a new license application, and notlater than December 15 or such date as may be specified by the director by rulefor renewal of a license.

      (3)In addition to the license fee collected under subsection (2) of this section,whenever the director devotes any extra attention to the affairs of apawnbroker, either upon determination by the director or upon request of thepawnbroker, the fee for the extra service shall be the actual cost thereof. [1985c.762 §139; 1997 c.842 §2; 2007 c.768 §56]

 

      726.130Annual report of licensee. Every pawnbroker, on or before January 15, shallsubmit to the Director of the Department of Consumer and Business Services anannual report in a form prescribed by the director, giving the followinginformation:

      (1)The number of pledge loans and total amount outstanding at the beginning of theyear.

      (2)The number of pledge loans made during the year and the aggregate amount of thepledge loans.

      (3)The number of pledge loans canceled during the year and the aggregate amount ofthe canceled pledge loans.

      (4)The number of pledge loans and total amount outstanding at the close of theyear.

      (5)Any other information requested by the director. [Amended by 2005 c.21 §14]

 

      726.140 [Repealed by1971 c.743 §432]

 

      726.150Revocation and suspension of license. (1) The Director of the Department ofConsumer and Business Services may revoke any license under this chapter if thedirector finds that:

      (a)The pawnbroker has failed to pay the annual license fee or to maintain ineffect the required bond or to comply with any demand, ruling or requirement ofthe director lawfully made pursuant to and within the authority of this chapteror to comply with the provisions of law to keep the corporation in goodstanding if such pawnbroker is a corporation;

      (b)The pawnbroker has violated any provision of this chapter or any rule orregulation lawfully made by the director under and within the authority of thischapter; or

      (c)Any fact or condition exists which, if it had existed at the time of theoriginal a