Chapter 5.05
PAWNBROKERS*
Sections:
5.05.010 Definitions.
5.05.020 Fixed place of business.
5.05.030 Records of transactions.
5.05.040 Report to chief of police.
5.05.050 Notification of stolen property.
5.05.060 Retention of pawned property – Inspection.
5.05.070 Retention of consigned property – Inspection.
5.05.080 Rates of interest and other fees.
5.05.090 Sale of pledged property limited.
5.05.100 Violations, penalty.
5.05.110 Resale agreement to avoid interest and fee restrictions prohibited.
5.05.120 Transactions excluded.
*Cross reference(s) – Sales and use taxes, ch. 3.16.
State law reference(s) – Pawnbrokers and second-hand dealers, RCW 19.60.010 et seq.
5.05.010 Definitions.
The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
1. Loan period means the period of time from the date the loan is made until the date the loan is paid off, the loan is in default, or the loan is refinanced and new loan documents are issued, including all grace or extension periods.
2. Melted metals means metals derived from junk metal or precious metals that have been reduced to a melted state from other than ore or ingots which are produced from ore that has not previously been processed.
3. Metal junk means any metal that has previously been milled, shaped, stamped, or forged and that is no longer useful in its original form, except precious metals.
4. Nonmetal junk means any nonmetal, commonly discarded item that is worn out, or has outlasted its usefulness as intended in its original form, except nonmetal junk does not include an item made in a former period which has enhanced value because of its age.
5. Pawnbroker means every person engaged, in whole or in part, in the business of loaning money on the security of pledges of personal property, or deposits or conditional sales of personal property, or the purchase or sale of personal property.
6. Precious metals means gold, silver, and platinum.
7. Second-hand dealer means every person engaged, in whole or in part, in the business of purchasing, selling, trading, consignment selling, or otherwise transferring for value second-hand property including metal junk, melted metals, and precious metals, whether or not the person maintains a fixed place of business within the state. “Second-hand dealer” also includes persons or entities conducting business at flea markets or swap meets, more than three (3) times per year.
8. Second-hand property means any item of personal property offered for sale which is not new, including metals in any form, except postage stamps, coins that are legal tender, bullion in the form of fabricated hallmarked bars, used books, and clothing of a resale value of seventy-five dollars ($75) or less, except furs.
9. Transaction means a pledge, or the purchase of, or consignment of, or the trade of any item of personal property by a pawnbroker or second-hand dealer from a member of the general public.
(Ord. No. 4007, § 1, 11-15-11)
Cross reference(s) – Definitions and rules of construction generally, § 1.01.030.
State law reference(s) – Similar provisions, RCW 19.60.010.
5.05.020 Fixed place of business.
No person may operate as a pawnbroker unless the person maintains a fixed place of business within the city.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.014.
5.05.030 Records of transactions.
A. Every pawnbroker and second-hand dealer doing business in the city shall maintain wherever that business is conducted a record in which shall be legibly written in the English language, at the time of each transaction, the following information:
1. The signature of the person with whom the transaction is made;
2. The date of the transaction;
3. The name of the person or employee or the identification number of the person or employee conducting the transaction as required by the chief of police;
4. The name, date of birth, sex, height, weight, race, and address and telephone number of the person with whom the transaction is made;
5. A complete description of the property pledged, bought, or consigned, including the brand name, serial number, model number or name, any initials or engravings, size, patterns, and color of stone or stones, and in the case of firearms, the caliber, barrel length, type of action, and whether it is a pistol, rifle, or shotgun;
6. The price paid or the amount loaned;
7. The type and identifying number of identification used by the person with whom the transaction was made, which shall consist of a valid driver’s license or identification card issued by any state or two (2) pieces of identification issued by a governmental agency, one (1) of which shall be descriptive of the person identified. At all times, one (1) piece of current government issued picture identification will be required; and
8. The nature of the transaction, a number identifying the transaction, the store identification as designated by the applicable law enforcement agency or the name and address of the business and the name of the person or employee conducting the transaction, and the location of the property.
B. This record shall at all times, during the ordinary hours of business, or at reasonable times if ordinary hours of business are not kept, be open to the inspection of any commissioned law enforcement officer of the city, state, or any of its political subdivisions, and shall be maintained wherever that business is conducted for three (3) years following the date of the transaction.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.020.
5.05.040 Report to chief of police.
A. Upon request, every pawnbroker and second-hand dealer doing business in the city shall furnish or mail within twenty-four (24) hours to the chief of police a full, true, and correct transcript of the record of all transactions conducted on the preceding day within the city. These transactions shall be recorded on such forms as may be provided and in such format as may be required by the chief of police. This information may be transmitted electronically, by facsimile transmission, or by modem or similar device, or by delivery of computer disk subject to the requirements of, and approval by, the chief of police.
B. If a pawnbroker or second-hand dealer has good cause to believe that any property in his possession has been previously lost or stolen, the pawnbroker or second-hand dealer shall promptly report that 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, it was received.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.040.
5.05.050 Notification of stolen property.
Following notification from a law enforcement agency that an item of property has been reported as stolen, the pawnbroker or second-hand dealer shall hold that property intact and safe from alteration, damage, or commingling. The pawnbroker or second-hand dealer shall place an identifying tag or other suitable identification on property so held. Property held shall not be released for one hundred twenty (120) days from the date of police notification unless released by written consent of the applicable law enforcement agency or by order of a court of competent jurisdiction. In cases where the applicable law enforcement agency has placed a verbal hold on an item, that agency must then give written notice within ten (10) business days. If such written notice is not received within that period of time, then the hold order will cease. The pawnbroker or second-hand dealer shall give a twenty (20) day written notice before the expiration of the one hundred twenty (120) day holding period to the applicable law enforcement agency about the stolen property. If notice is not given within the required twenty (20) day period, then the hold on the property shall continue for an additional one hundred twenty (120) days. The applicable law enforcement agency may renew the holding period for additional one hundred twenty (120) day periods as necessary. After the receipt of notification from a pawnbroker or second-hand dealer, if an additional holding period is required, the applicable law enforcement agency shall give the pawnbroker or second-hand dealer written notice, prior to the expiration of the existing hold order. A law enforcement agency shall not place on hold any item of personal property unless that agency reasonably suspects that the item of personal property is a lost or stolen item. Any hold that is placed on an item will be removed as soon as practicable after the item on hold is determined not to be stolen or lost.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.045.
5.05.060 Retention of pawned property – Inspection.
Property bought or received in pledge by any pawnbroker shall not be removed from that place of business, except when redeemed by or returned to the owner, within thirty (30) days after receipt of the property. Property shall at all times during the ordinary hours of business be open to inspection to any commissioned law enforcement officer of the city, state, or any of its political subdivisions.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.050.
5.05.070 Retention of consigned property – Inspection.
A. Property bought or received on consignment by a second-hand dealer with a permanent place of business in the city shall not be removed from that place of business, except consigned property returned to the owner within thirty (30) days after the receipt of the property. Property shall, at all times during the ordinary hours of business, be open to inspection to any commissioned law enforcement officer of the city, state, or any of its political subdivisions.
B. Property bought or received on consignment by a second-hand dealer without a permanent place of business in the city shall be held within the city, except consigned property returned to the owner, for thirty (30) days after receipt of the property. The property shall be available for inspection at reasonable times by any commissioned law enforcement officer of the city, state, or any of its political subdivisions.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.055.
5.05.080 Rates of interest and other fees.
A. All pawnbrokers are authorized to charge and receive interest and other fees at the rates in this section for money loaned on the security of personal property actually received in pledge. The interest for the loan period shall not exceed:
1. For an amount loaned up to nine dollars and ninety-nine cents ($9.99) – interest at one dollar ($1) for each thirty (30) day period to include the loan date.
2. For an amount loaned from ten dollars ($10) to nineteen dollars and ninety-nine cents ($19.99) – interest at one dollar and twenty-five cents ($1.25) for each thirty (30) day period to include the loan date.
3. For an amount loaned from twenty dollars ($20) to twenty-four dollars and ninety-nine cents ($24.99) – interest at one dollar and fifty cents ($1.50) for each thirty (30) day period to include the loan date.
4. For an amount loaned from twenty-five dollars ($25) to thirty-four dollars and ninety-nine cents ($34.99) – interest at one dollar and seventy-five cents ($1.75) for each thirty (30) day period to include the loan date.
5. For an amount loaned from thirty-five dollars ($35) to thirty-nine dollars and ninety-nine cents ($39.99) – interest at two dollars ($2) for each thirty (30) day period to include the loan date.
6. For an amount loaned from forty dollars ($40) to forty-nine dollars and ninety-nine cents ($49.99) – interest at two dollars and twenty-five cents ($2.25) for each thirty (30) day period to include the loan date.
7. For an amount loaned from fifty dollars ($50) to fifty-nine dollars and ninety-nine cents ($59.99) – interest at two dollars and fifty cents ($2.50) for each thirty (30) day period to include the loan date.
8. For an amount loaned from sixty dollars ($60) to sixty-nine dollars and ninety-nine cents ($69.99) – interest at two dollars and seventy-five cents ($2.75) for each thirty (30) day period to include the loan date.
9. For an amount loaned from seventy dollars ($70) to seventy-nine dollars and ninety-nine cents ($79.99) – interest at three dollars ($3) for each thirty (30) day period to include the loan date.
10. For an amount loaned from eighty dollars ($80) to eighty-nine dollars and ninety-nine cents ($89.99) – interest at three dollars and twenty-five cents ($3.25) for each thirty (30) day period to include the loan date.
11. For an amount loaned from ninety dollars ($90) to ninety-nine dollars and ninety-nine cents ($99.99) – interest at three dollars and fifty cents ($3.50) for each thirty (30) day period to include the loan date.
12. For an amount loaned from one hundred dollars ($100) or more – interest at the rate of three (3) percent for each thirty (30) day period to include the loan date.
B. The fee for preparation of documents, pledges, or reports required under the laws of the United States, the state, King County, or the city shall not exceed:
1. For the amount loaned up to four dollars and ninety-nine cents ($4.99) – the sum of one dollar and fifty cents ($1.50).
2. For the amount loaned from five dollars ($5) to nine dollars ($9) – the sum of three dollars ($3).
3. For the amount loaned from ten dollars ($10) to fourteen dollars and ninety-nine cents ($14.99) – the sum of four dollars ($4).
4. For the amount loaned from fifteen dollars ($15) to nineteen dollars and ninety-nine cents ($19.99) – the sum of four dollars and fifty cents ($4.50).
5. For the amount loaned from twenty dollars ($20) to twenty-four dollars and ninety-nine cents ($24.99) – the sum of five dollars ($5).
6. For the amount loaned from twenty-five dollars ($25) to twenty-nine dollars and ninety-nine cents ($29.99) – the sum of five dollars and fifty cents ($5.50).
7. For the amount loaned from thirty dollars ($30) to thirty-four dollars and ninety-nine cents ($34.99) – the sum of six dollars ($6).
8. For the amount loaned from thirty-five dollars ($35) to thirty-nine dollars and ninety-nine cents ($39.99) – the sum of six dollars and fifty cents ($6.50).
9. For the amount loaned from forty dollars ($40) to forty-four dollars and ninety-nine cents ($44.99) – the sum of seven dollars ($7).
10. For the amount loaned from forty-five dollars ($45) to forty-nine dollars and ninety-nine cents ($49.99) – the sum of seven dollars and fifty cents ($7.50).
11. For the amount loaned from fifty dollars ($50) to fifty-four dollars and ninety-nine cents ($54.99) – the sum of eight dollars ($8).
12. For the amount loaned from fifty-five dollars ($55) to fifty-nine dollars and ninety-nine cents ($59.99) – the sum of eight dollars and fifty cents ($8.50).
13. For the amount loaned from sixty dollars ($60) to sixty-four dollars and ninety-nine cents ($64.99) – the sum of nine dollars ($9).
14. For the amount loaned from sixty-five dollars ($65) to sixty-nine dollars and ninety-nine cents ($69.99) – the sum of nine dollars and fifty cents ($9.50).
15. For the amount loaned from seventy dollars ($70) to seventy-four dollars and ninety-nine cents ($74.99) – the sum of ten dollars ($10).
16. For the amount loaned from seventy-five dollars ($75) to seventy-nine dollars and ninety-nine cents ($79.99) – the sum of ten dollars and fifty cents ($10.50).
17. For the amount loaned from eighty dollars ($80) to eighty-four dollars and ninety-nine cents ($84.99) – the sum of eleven dollars ($11).
18. For the amount loaned from eighty-five dollars ($85) to eighty-nine dollars and ninety-nine cents ($89.99) – the sum of eleven dollars and fifty cents ($11.50).
19. For the amount loaned from ninety dollars ($90) to ninety-four dollars and ninety-nine cents ($94.99) – the sum of twelve dollars ($12).
20. For the amount loaned from ninety-five dollars ($95) to ninety-nine dollars and ninety-nine cents ($99.99) – the sum of twelve dollars and fifty cents ($12.50).
21. For the amount loaned from one hundred dollars ($100) to one hundred four dollars and ninety-nine cents ($104.99) – the sum of thirteen dollars ($13).
22. For the amount loaned from one hundred five dollars ($105) to one hundred nine dollars and ninety-nine cents ($109.99) – the sum of thirteen dollars and twenty-five cents ($13.25).
23. For the amount loaned from one hundred ten dollars ($110) to one hundred fourteen dollars and ninety-nine cents ($114.99) – the sum of thirteen dollars and seventy-five cents ($13.75).
24. For the amount loaned from one hundred fifteen dollars ($115) to one hundred nineteen dollars and ninety-nine cents ($119.99) – the sum of fourteen dollars and twenty-five cents ($14.25).
25. For the amount loaned from one hundred twenty dollars ($120) to one hundred twenty-four dollars and ninety-nine cents ($124.99) – the sum of fourteen dollars and fifty cents ($14.50).
26. For the amount loaned from one hundred twenty-five dollars ($125) to one hundred twenty-nine dollars and ninety-nine cents ($129.99) – the sum of fourteen dollars and seventy-five cents ($14.75).
27. For the amount loaned from one hundred thirty dollars ($130) to one hundred forty-nine dollars and ninety-nine cents ($149.99) – the sum of fifteen dollars and fifty cents ($15.50).
28. For the amount loaned from one hundred fifty dollars ($150) to one hundred seventy-four dollars and ninety-nine cents ($174.99) – the sum of fifteen dollars and seventy-five cents ($15.75).
29. For the amount loaned from one hundred seventy-five dollars ($175) to one hundred ninety-nine dollars and ninety-nine cents ($199.99) – the sum of sixteen dollars ($16).
30. For the amount loaned from two hundred dollars ($200) to two hundred twenty-four dollars and ninety-nine cents ($224.99) – the sum of seventeen dollars ($17).
31. For the amount loaned from two hundred twenty-five dollars ($225) to two hundred forty-nine dollars and ninety-nine cents ($249.99) – the sum of eighteen dollars ($18).
32. For the amount loaned from two hundred fifty dollars ($250) to two hundred seventy-four dollars and ninety-nine cents ($274.99) – the sum of nineteen dollars ($19).
33. For the amount loaned from two hundred seventy-five dollars ($275) to two hundred ninety-nine dollars and ninety-nine cents ($299.99) – the sum of twenty dollars ($20).
34. For the amount loaned from three hundred dollars ($300) to three hundred twenty-four dollars and ninety-nine cents ($324.99) – the sum of twenty-one dollars ($21).
35. For the amount loaned from three hundred twenty-five dollars ($325) to three hundred forty-nine dollars and ninety-nine cents ($349.99) – the sum of twenty-two dollars ($22).
36. For the amount loaned from three hundred fifty dollars ($350) to three hundred seventy-four dollars and ninety-nine cents ($374.99) – the sum of twenty-three dollars ($23).
37. For the amount loaned from three hundred seventy-five dollars ($375) to three hundred ninety-nine dollars and ninety-nine cents ($399.99) – the sum of twenty-four dollars ($24).
38. For the amount loaned from four hundred dollars ($400) to four hundred twenty-four dollars and ninety-nine cents ($424.99) – the sum of twenty-five dollars ($25).
39. For the amount loaned from four hundred twenty-five dollars ($425) to four hundred forty-nine dollars and ninety-nine cents ($449.99) – the sum of twenty-six dollars ($26).
40. For the amount loaned from four hundred fifty dollars ($450) to four hundred seventy-four dollars and ninety-nine cents ($474.99) – the sum of twenty-seven dollars ($27).
41. For the amount loaned from four hundred seventy-five dollars ($475) to four hundred ninety-nine dollars and ninety-nine cents ($499.99) – the sum of twenty-eight dollars ($28).
42. For the amount loaned from five hundred dollars ($500) to five hundred twenty-four dollars and ninety-nine cents ($524.99) – the sum of twenty-nine dollars ($29).
43. For the amount loaned from five hundred twenty-five dollars ($525) to five hundred forty-nine dollars and ninety-nine cents ($549.99) – the sum of thirty dollars ($30).
44. For the amount loaned from five hundred fifty dollars ($550) to five hundred ninety-nine dollars and ninety-nine cents ($599.99) – the sum of thirty-one dollars ($31).
45. For the amount loaned from six hundred dollars ($600) to six hundred ninety-nine dollars and ninety-nine cents ($699.99) – the sum of thirty-six dollars ($36).
46. For the amount loaned from seven hundred dollars ($700) to seven hundred ninety-nine dollars and ninety-nine cents ($799.99) – the sum of forty-one dollars ($41).
47. For the amount loaned from eight hundred dollars ($800) to eight hundred ninety-nine dollars and ninety-nine cents ($899.99) – the sum of forty-six dollars ($46).
48. For the amount loaned from nine hundred dollars ($900) to nine hundred ninety-nine dollars and ninety-nine cents ($999.99) – the sum of fifty-one dollars ($51).
49. For the amount loaned from one thousand dollars ($1,000) to one thousand four hundred ninety-nine dollars and ninety-nine cents ($1,499.99) – the sum of fifty-six dollars ($56).
50. For the amount loaned from one thousand five hundred dollars ($1,500) to one thousand nine hundred ninety-nine dollars and ninety-nine cents ($1,999.99) – the sum of sixty-one dollars ($61).
51. For the amount loaned from two thousand dollars ($2,000) to two thousand four hundred ninety-nine dollars and ninety-nine cents ($2,499.99) – the sum of sixty-six dollars ($66).
52. For the amount loaned from two thousand five hundred dollars ($2,500) to two thousand nine hundred ninety-nine dollars and ninety-nine cents ($2,999.99) – the sum of seventy-one dollars ($71).
53. For the amount loaned from three thousand dollars ($3,000) to three thousand four hundred ninety-nine dollars and ninety-nine cents ($3,499.99) – the sum of seventy-six dollars ($76).
54. For the amount loaned from three thousand five hundred dollars ($3,500) to three thousand nine hundred ninety-nine dollars and ninety-nine cents ($3,999.99) – the sum of eighty-one dollars ($81).
55. For the amount loaned from four thousand dollars ($4,000) to four thousand four hundred ninety-nine dollars and ninety-nine cents ($4,499.99) – the sum of eighty-six dollars ($86).
56. For the amount loaned from four thousand five hundred dollars ($4,500) or more – the sum of ninety-one dollars ($91).
C. A pawnbroker may charge a storage fee of three dollars ($3). An additional fee of thirty dollars ($30) may be charged for storing a firearm.
D. Fees under subsection (B) of this section may be charged one (1) time only for each loan period; no additional fees, other than interest allowed under subsection (A) of this section, shall be charged for making the loan. Storage fees are allowed under subsection (C) of this section.
E. A copy of this section set in twelve (12) point type or larger shall be posted prominently in each premises subject to this chapter.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.060.
5.05.090 Sale of pledged property limited.
A. The term of the loan shall be for a period of ninety (90) days to include the date of the loan.
B. A pawnbroker shall not sell any property received in pledge until a minimum of ninety (90) days has expired. However, if a pledged article is not redeemed within the ninety (90) day period of the term of the loan, the pawnbroker shall have all rights, title, and interest of that item of personal property. The pawnbroker shall not be required to account to the pledgor for the proceeds received from the disposition of that item. Any provision of law relating to the foreclosures and the subsequent sale of forfeited pledged items shall not be applicable to any pledge as defined under this chapter, the title to which is transferred in accordance with this section.
C. Every loan transaction entered into by a pawnbroker shall be evidenced by a written document, a copy of which shall be furnished to the pledgor. The document shall set forth the term of the loan; the final date of which the loan is due and payable; the loan preparation fee; the storage fee; the firearm fee, if applicable; and any other fee allowed under law that is charged; the amount of interest charged every thirty (30) days; the total amount due including the principal amount, the preparation fee, and all interest charges due if the loan is outstanding for the full ninety (90) days allowed by the term and the annual percentage rate, and shall inform the pledgor of the pledgor’s right to redeem the pledge at any time within the term of the loan.
D. If a person who has entered into a loan transaction with a pawnbroker in this state is unable to redeem and repay the loan on or before the expiration of the term of the loan, and that person wishes to retain his or her rights to use that item by rewriting the loan, and if both parties mutually agree, an existing loan transaction may be rewritten into a new loan, either in person or by mail. All applicable provisions of this chapter shall be followed in rewriting a loan, except that where an existing loan is rewritten by mail, KCC 5.05.030(A)(1) and (7) shall not apply.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.061.
5.05.100 Violations, penalty.
A. It is unlawful for:
1. Any person to remove, alter, or obliterate any manufacturer’s make, model, or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property that was purchased, consigned, or received in pledge. In addition, an item shall not be accepted for pledge or a second-hand purchase where the manufacturer’s make, model, or serial number, personal identification number, or identifying marks engraved or etched upon an item of personal property have been removed, altered, or obliterated.
2. Any person to knowingly make, cause, or allow to be made any false entry or misstatement of any material matter in a book, record, or writing required to be kept under this chapter.
3. Any pawnbroker or second-hand dealer to receive any property from any person under the age of eighteen (18) years, or any person under the influence of intoxicating liquor or drugs.
4. For any pawnbroker or second-hand dealer to receive any property from any person known to the pawnbroker or second-hand dealer as having been convicted of burglary, robbery, theft, or possession of or receiving stolen property within the past ten (10) years whether the person is acting in his or her own behalf or as the agent of another.
5. Any pawnbroker to engage in the business of cashing or selling checks, drafts, money orders, or other commercial paper serving the same purpose unless the pawnbroker complies with the provisions of Chapter 31.45 RCW.
6. Any person to violate knowingly any other provisions of this chapter.
B. Violation of any of the sections of this chapter is a gross misdemeanor punishable by imprisonment for not more than one (1) year or a fine of not more than five thousand dollars ($5,000) or both.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.066.
5.05.110 Resale agreement to avoid interest and fee restrictions prohibited.
A purchase of personal property shall not be made on the condition of selling it back at a stipulated time and price greater than the purchase price, for the purpose of avoiding the interest and fee restrictions of this chapter.
(Ord. No. 4007, § 1, 11-15-11)
5.05.120 Transactions excluded.
The provisions of this chapter do not apply to transactions conducted by the following:
1. Motor vehicle dealers licensed under Chapter 46.70 RCW;
2. Motor vehicle wreckers or hulk haulers licensed under Chapter 46.79 or 46.80 RCW;
3. Persons giving an allowance for the trade-in or exchange of second-hand property on the purchase of other merchandise of the same kind or greater value; and
4. Persons in the business of buying or selling empty food and beverage containers or metal or nonmetal junk.
(Ord. No. 4007, § 1, 11-15-11)
State law reference(s) – Similar provisions, RCW 19.60.085.