Chapter 360
AN ACT
HB 2220
Relating to pawnbroker regulation; amending ORS 726.050, 726.060,
726.070, 726.080, 726.110, 726.250, 726.280 and 726.340.
Be It Enacted by the People of
the State of
SECTION 1. ORS 726.050 is amended to read:
726.050. [No license shall be granted to any person,
partnership, association or corporation] The Director of the Department
of Consumer and Business Services may not issue a license to a corporation,
limited liability company or limited liability partnership or to a person using
an assumed business name unless [that
person and all members of any such partnership or association are bona fide
residents of this state and unless such]:
(1) The limited liability company or limited liability partnership
has filed the required documents under ORS chapter 63 or 67;
(2) The person using the
assumed business name has registered the name under ORS chapter 648; or
(3) The corporation is an
SECTION 2. ORS 726.060 is amended to read:
726.060. (1) An
application for the license shall be in writing in [the] a form prescribed by the Director of the Department of
Consumer and Business Services. [and]
(2) The application
shall contain:
(a) If the applicant is
an individual, the name and
both the residence and business addresses of the applicant[, and];
(b) If the applicant is a partnership or
association, the name and both the residence and business addresses of
every member [thereof, and if a
corporation, of each officer and director thereof. The application shall also
show] of the partnership or association;
(c) If the applicant is
a corporation, the name and both the residence and business addresses of each
officer and director of the corporation;
(d) The county and city with street and number,
if any, where the business is to be conducted; and
(e) [such] Any
other information that the director may require.
[(2) Before issuing any license, the director shall post notice of
filing of the application in the office of the Department of Consumer and
Business Services for a period of 30 days. The director may waive posting of
the notice if the application is made by an applicant for the same location as
one for which a license has been surrendered because:]
[(a) The business has been transferred to the
applicant;]
[(b) The licensee has died and the applicant is the licensee’s personal
representative or successor in interest; or]
[(c) The licensee is the applicant and has changed the name under which
the licensee is doing business.]
(3) The applicant at the
time of making application for the applicant’s first licensed location in this
state shall pay to the director a nonrefundable application fee of $500.
SECTION 3. ORS 726.070 is amended to read:
726.070. (1) A bond in
the sum of $25,000 executed by the applicant as obligor, together with a surety
company authorized to do business in this state as surety or an irrevocable
letter of credit issued by an insured institution as defined in ORS 706.008 in
the amount of $25,000 shall accompany the application and be maintained by the
pawnbroker licensee with the Director of the Department of Consumer and
Business Services. This bond or letter of credit shall be executed to the State
of
(2) If any person is
aggrieved by the misconduct of a pawnbroker or by the pawnbroker’s violation of
any law and recovers judgment therefor, [such]
the person may, after the return unsatisfied either in whole or in part
of any execution issued upon [such] the
judgment, maintain an action for the person’s own use upon the bond or letter
of credit of the pawnbroker in any court having jurisdiction of the amount
claimed. The director shall furnish to anyone applying therefor, a certified
copy of any such bond or letter of credit filed with the director [upon the payment of a fee of $5 and].
The certified copy [shall be] is
prima facie evidence in any court that the bond or letter of credit was duly
executed and delivered by each pawnbroker whose name appears [thereon] on the bond or letter of
credit.
SECTION 4. ORS 726.080 is amended to read:
726.080. (1) Conditioned
upon the applicant’s compliance with this chapter, the payment of the license
fee[,] and the filing of a
bond or letter of credit [and
approval thereof] on a form approved by the Attorney General,
and in the absence of any reason or condition [which] that in the judgment of the Director of the
Department of Consumer and Business Services might warrant the refusal of the
granting of a license, including the reasons set out in ORS 726.075, the
director shall issue a license within [10
days after the expiration of the required 30-day filing period or, if the
director has waived the filing period, within 10] 45 days after the
date [the] a complete
application was received.
(2) If the application
is denied, the director shall indorse [thereon]
on the application with the date the word “Disapproved” and shall
immediately advise the applicant by registered mail or by certified mail with
return receipt of the reason [therefor]
for the denial.
SECTION 5. ORS 726.110 is amended to read:
726.110. Whenever a
pawnbroker changes the place of business to another location within the same
city or town, the pawnbroker shall at once give written notice [thereof] of the change to the
Director of the Department of Consumer and Business Services and shall
surrender the pawnbroker’s license for cancellation[, together with the payment of a fee of $5
for a new license]. Thereupon a new license shall be issued by the director
for the new location. [No] A
change in the place of business of a pawnbroker to a location outside of the
city or town named in the original license [shall
be] is not permitted under the same license.
SECTION 6. ORS 726.250 is amended to read:
726.250. (1)(a) For the
purpose of discovering violations of this chapter or securing information
required by the Director of the Department of Consumer and Business Services
under this chapter, the director at any time, either personally or by an
examiner or other employee of the Department of Consumer and Business Services,
may investigate the pledge loans and business and examine the books, accounts,
records and files used in the pledge loans and business of every pawnbroker and
of every person that the director has reason to believe is acting as a
pawnbroker without a license, whether that person acts or claims to act as
principal or agent, or under or without the authority of this chapter.
(b) For the purposes of
paragraph (a) of this subsection:
(A) Every pawnbroker and
person that the director has reason to believe is acting as a pawnbroker
without a license shall give the director, examiner or other employee of the
department free access to the person’s place of business, books, accounts,
papers, records, files, safes and vaults; and
(B) The director,
examiner or other employee may:
(i) Compel the
attendance of witnesses and examine the witnesses under oath; and
(ii) Require the
production of documents or records.
(c) The actual cost of
each examination shall be paid to the director by every person examined. The
director may maintain an action for recovery of costs in any court of competent
jurisdiction.
(2) [At least once every two calendar years or]
As often as the director determines necessary, the director, examiner or other
employee of the department shall make an examination of the pledge loans and
business, office records and files of each licensed pawnbroker. The examination
shall occur at the licensed location of the pawnbroker.
(3) [At least once during any calendar year in
which an examination is not conducted under subsection (2) of this section,]
As often as the director determines necessary, each licensed pawnbroker
shall submit to the director for examination, at the office of the director,
those books, records and documents prescribed by the director by rule.
SECTION 7. ORS 726.280 is amended to read:
726.280. (1) Every pawnbroker shall keep a register in which shall be
recorded in ink or in electronic form:
(a) The date of the
transaction.
(b) The serial number of
the pledge loan.
(c) The name and address
of the pledgor, or if the pledge is made by a person acting as agent for a
disclosed principal, the name and address of principal and agent.
(d) An identifying
description of the article or articles pledged.
(e) The amount of the
pledge loan.
(f) The date on which
such pledge loan was canceled.
(g) A notation as to
whether it was redeemed or renewed, or whether the pledge was forfeited.
(2) All entries in the
register shall be made in the English language and shall be open to the
inspection of any public official, police officer or any other person who is
duly authorized or empowered by the laws of this state to make such inspection.
(3) Every pawnbroker
shall maintain an alphabetical file from which can be determined the total
obligations of any one pledgor.
(4) Subject to the
provisions of this chapter, the Director of the Department of Consumer
and Business Services may prescribe the form of other books and records to be
kept by the pawnbroker. All records shall be preserved and available for at
least two years after making the final entry on any pledge loan recorded
therein.
SECTION 8. ORS 726.340 is amended to read:
726.340. If the pawn
ticket or memorandum is lost, destroyed or stolen, the pledgor shall so notify
the pawnbroker in writing. The pawnbroker shall treat receipt of such
notice [shall be treated by the
pawnbroker] as a stop against the pledge loan, and thereafter the
provisions of ORS 726.310 and 726.320 shall not apply to such pledge loan.
Before delivering the pledge or issuing a new pawn ticket in such event, the
pawnbroker may require the pledgor to make an affidavit of the alleged loss,
destruction or theft of the ticket. [Upon
receipt of the affidavit, or in case no affidavit is required, then within not
less than three nor more than five days from receipt
of] Not more than five days after receiving notice of the loss of
the ticket, the pawnbroker shall permit the pledgor either to redeem the pledge
or to receive a new ticket upon the payment of accrued interest, and the
pawnbroker shall incur no liability for so doing unless the pawnbroker has
previously received written notice of an adverse claim. This section [shall not be construed as in any manner
limiting or affecting] does not limit or affect the pawnbroker’s
legal liability in cases where goods are stolen or other legal defects of title
exist in the pledgor.
Approved by the Governor June 12, 2007
Filed in the office of Secretary of State June 13, 2007
Effective date January 1, 2008
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