Chapter 5.16
PAWNBROKERS AND SECONDHAND DEALERS

Sections:

5.16.010    Pawnbroker defined.

5.16.020    Secondhand dealer defined.

5.16.030    License required.

5.16.040    Record keeping requirements.

5.16.050    Inspection of records and goods by prosecuting attorney or peace officer.

5.16.060    Daily report to chief of police.

5.16.070    Property received to remain on premises four days unless redeemed.

5.16.080    Interest rates and other fees on money loaned – Copy posting required.

5.16.090    Owner of stolen goods entitled to reasonable fees and costs for replevin action.

5.16.100    Violation – Penalty.

5.16.010 Pawnbroker defined.

Every person engaged, in whole or in part, in the business of loaning money on the security of pledges, deposits or conditional sales of personal property shall be deemed to be a “pawnbroker.” (Ord. 818 NS § 2, 1980).

5.16.020 Secondhand dealer defined.

Every person engaged, in whole or in part, in the business of buying or selling secondhand personal property, metal junk, or melted metals shall be deemed to be a “secondhand dealer.” (Ord. 818 NS § 3, 1980).

5.16.030 License required.

Any person, persons, or firm or corporation desiring to engage in whole or in part in the business of pawnbroker or secondhand dealer shall first obtain a license therefor. (Ord. 818 NS § 1, 1980).

5.16.040 Record keeping requirements.

It shall be the duty of every pawnbroker and secondhand dealer doing business in the city to maintain in his place of business a book or other permanent record in which shall be legibly written in the English language, at the time of each loan, purchase or sale, a record thereof containing the following:

A. The date of the transaction;

B. The name of the person or employee conducting the same;

C. The name, age, street and house number, and a general description of the dress, complexion, color of hair, and facial appearance of the person with whom the transaction is had;

D. The name and street and house number of the owner of the property bought or received in pledge;

E. The street and house number of the place from which the property bought or received in pledge was last removed;

F. A description of the property bought or received in pledge, which in the case of watches shall contain the name of the maker and the number of both the works and the case, and in the case of jewelry shall contain a description of all letters and marks inscribed thereon; provided, that when the article bought or received is furniture, or the contents of any house or room actually inspected on the premises, a general record of the transaction shall be sufficient;

G. The price paid or the amount loaned;

H. The names and street and house numbers of all persons witnessing the transaction;

I. The number of any pawn ticket issued therefor. (Ord. 818 NS § 4, 1980).

5.16.050 Inspection of records and goods by prosecuting attorney or peace officer.

Such record, and all goods received, shall at all times during the ordinary hours of business be open to the inspection of the prosecuting attorney or of any peace officer. (Ord. 818 NS § 5, 1980).

5.16.060 Daily report to chief of police.

Every pawnbroker and secondhand dealer doing business in the city shall, before noon of each day, furnish to the chief of police, on such forms as such chief of police may provide therefor, a full, true and correct transcript of the record of all transactions had on the preceding day, and, having good cause to believe that any property in his possession has been previously lost or stolen, he shall report such fact to the chief of police, together with the name of the owner, if known, and the date when, and the name of the person from whom the same was received by him. (Ord. 818 NS § 6, 1980).

5.16.070 Property received to remain on premises four days unless redeemed.

No property bought or received in pledge by any pawnbroker or secondhand dealer shall be removed from his place of business, except when redeemed by the owner thereof, within four days after the receipt thereof shall have been reported to the chief of police as provided in CMC 5.16.060. (Ord. 818 NS § 7, 1980).

5.16.080 Interest rates and other fees on money loaned – Copy posting required.

A. All pawnbrokers are authorized to charge and receive interest and other fees at the following rates for money loaned on the security of personal property actually received in pledge:

1. The interest shall not exceed:

a. For an amount loaned up to $19.99, interest at $1.00 per month;

b. For an amount loaned from $20.00 to $39.99, interest at the rate of $1.50 per month;

c. For an amount loaned from $40.00 to $75.99, interest at the rate of $2.00 per month;

d. For an amount loaned from $76.00 to $100.99, interest at the rate of $2.50 per month;

e. For an amount loaned from $101.00 to $125.99, interest at the rate of $3.00 per month;

f. For an amount loaned from $126.00 or more, interest at the rate of three percent a month;

2. The fee for the preparation of documents, pledges, or reports required under the laws of the United States of America, the state, or the counties, cities, towns, or other political subdivisions thereof, shall not exceed:

a. For the amount loaned up to $4.99, the sum of $0.50;

b. For the amount loaned from $5.00 to $9.99, the sum of $2.00;

c. For the amount loaned from $10.00 to $19.99, the sum of $3.00;

d. For the amount loaned from $20.00 to $39.99, the sum of $4.00;

e. For the amount loaned from $40.00 to $74.99, the sum of $5.00;

f. For the amount loaned from $75.00 to $99.99, the sum of $7.50;

g. For the amount loaned from $100.00 or more, the sum of $9.00;

3. The fee for the care, maintenance, insurance relating to, preparation for storage of personal property actually received in pledge shall not exceed:

a. For precious jewels, jewelry, or other personal property having a value of $100.00 to $299.99, an amount equal to one-tenth of one percent of the value thereof as agreed upon in writing between the pledgor and the pledgee;

b. For precious jewels, jewelry, or other personal property having a value exceeding $300.00, an amount equal to one-twelfth of one percent of the value thereof as agreed upon in writing between the pledgor and the pledgee.

B. Fees under subsections (A)(2) and (3) of this section may be charged one time only during the term of a pledge, and every person who asks or receives a higher rate of interest or discount or other fees on any such loan, or on any actual or pretended sale, or redemption of personal property, or who sells any property held for redemption within 90 days after the period for redemption shall have expired, shall be guilty of a misdemeanor.

C. A copy of this section, set in 12-point type or larger, shall be posted prominently in each premises subject to this chapter. (Ord. 818 NS § 8, 1980).

5.16.090 Owner of stolen goods entitled to reasonable fees and costs for replevin action.

Whenever the owner of stolen goods locates said stolen goods in the possession of a pawnbroker or secondhand dealer, and is forced to bring an action for replevin to recover possession thereof, the owner shall be entitled to reasonable attorney fees and costs in connection with the replevin action. (Ord. 818 NS § 10, 1980).

5.16.100 Violation – Penalty.

A. Every pawnbroker or secondhand dealer, and every clerk, agent or employee of such pawnbroker or secondhand dealer, who commits any of the following shall be guilty of a misdemeanor:

1. Fails to make an entry of any material matter in his book or record kept as provided in this chapter; or

2. Makes any false entry therein; or

3. Falsifies, obliterates, destroys or removes from his place of business such book or record; or

4. Refuses to allow the prosecuting attorney or any peace officer to inspect the same, or any goods in his possession, during the ordinary hours of business; or

5. Reports any material matter falsely to the chief of police; or

6. Having forms provided therefor, fails before noon of each day to furnish the chief of police with a full, true and correct transcript of the record of all transactions had on the previous day, it being the intent of this section that Saturday’s business may be reported on Monday; or

7. Fails to report forthwith to the chief of police the possession of any property which he may have good cause to believe has been lost or stolen, together with the name of the owner, if known, and the date when, and the name of the person from whom the same was received by him; or

8. Removes, or allows to be removed from his place of business, except upon redemption by the owner thereof, any property received within four days after the receipt thereof has been reported to the chief of police; or

9. Receives any property from any person under the age of 18 years, any common drunkard, any habitual user of narcotic drugs, any habitual criminal, any person in an intoxicated condition, any known thief or receiver of stolen property, or any known associate of such thief or receiver of stolen property, whether such person is acting in his own behalf or as the agent of another.

B. A second conviction under this chapter within a one-year period of time shall result in suspension of the license to conduct said business for a period of one year. (Ord. 818 NS § 9, 1980).