As Passed by the House                        1            

123rd General Assembly                                             4            

   Regular Session                          Sub. H. B. No. 467     5            

      1999-2000                                                    6            


       REPRESENTATIVES SCHULER-ALLEN-VESPER-BRITTON-EVANS-         8            

             DePIERO-MOTTLEY-PERRY-BARRETT-GRENDELL                9            


_________________________________________________________________   10           

                          A   B I L L                                           

             To amend sections 4727.01 to 4727.06, 4727.08 to      12           

                4727.16, and 4727.99; to amend, for the purpose    13           

                of adopting a new section number as indicated in                

                parentheses, section 4727.16 (4727.21); and to     14           

                enact new section 4727.16 and sections 4727.17 to  15           

                4727.20 of the Revised Code to revise the                       

                Pawnbroker Licensing Law.                          16           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        18           

      Section 1.  That sections 4727.01, 4727.02, 4727.03,         20           

4727.04, 4727.05, 4727.06, 4727.08, 4727.09, 4727.10, 4727.11,     21           

4727.12, 4727.13, 4727.14, 4727.15, 4727.16, and 4727.99 be        22           

amended, section 4727.16 (4727.21) be amended for the purpose of   23           

adopting a new section number as indicated in parentheses, and                  

new section 4727.16 and sections 4727.17, 4727.18, 4727.19, and    24           

4727.20 of the Revised Code be enacted to read as follows:         25           

      Sec. 4727.01.  As used in sections 4727.01 to 4727.16 of     37           

the Revised Code THIS CHAPTER:                                     38           

      (A)  "Pawnbroker" means a person engaged in the business of  41           

lending money on deposit or pledges of personal property, other                 

than securities, printed evidence of indebtedness, titles, deeds,  43           

or bills of sale, at a total charge, rate of interest, or          44           

discount or other remuneration in excess of eight per cent per     45           

annum, and includes a person engaged in the business of            47           

purchasing personal property from another person with an           48           

agreement that the person the personal property will be made       49           

                                                          2      


                                                                 
available to that other person for repurchase within an agreed-to  51           

time period two persons and for an amount greater than the price   53           

the person originally paid to that OTHER person for the purchase   54           

of the personal property.                                          55           

      (B)  "Superintendent of financial institutions" includes     57           

the deputy superintendent for consumer finance as provided in      58           

section 1181.21 of the Revised Code.                               59           

      Sec. 4727.02.  No person shall act as a pawnbroker, or       68           

advertise, transact, or solicit business as a pawnbroker, without  69           

first having obtained a license from the division SUPERINTENDENT   70           

of financial institutions in the department of commerce.           71           

      Sec. 4727.03.  (A)  As used in this section, "experience     80           

and fitness in the capacity involved" means that the applicant     81           

for a pawnbroker's license demonstrates sufficient financial       82           

responsibility, reputation, and experience in the pawnbroker       83           

business, or in a related business, to act as a pawnbroker in      84           

compliance with sections 4727.01 to 4727.16 of the Revised Code    85           

THIS CHAPTER. "Experience and fitness in the capacity involved"    87           

shall be determined by:                                            88           

      (1)  Prior or current ownership or management of, or         90           

employment in, a pawnshop;                                         91           

      (2)  Demonstration to the satisfaction of the                93           

superintendent of financial institutions of a thorough working     95           

knowledge of all pawnbroker laws and rules as they relate to the   96           

actual operation of a pawnshop;.                                                

      A DEMONSTRATION SHALL INCLUDE A DEMONSTRATION OF AN ABILITY  98           

TO PROPERLY COMPLETE FORMS, KNOWLEDGE OF HOW TO PROPERLY           99           

CALCULATE INTEREST AND STORAGE CHARGES, AND KNOWLEDGE OF LEGAL     100          

NOTICE AND FORFEITURE PROCEDURES.  THE FINAL DETERMINATION OF      101          

WHETHER AN APPLICANT'S DEMONSTRATION IS ADEQUATE RESTS WITH THE    102          

SUPERINTENDENT OF FINANCIAL INSTITUTIONS.                                       

      (3)  A submission by the applicant and any stockholders,     104          

OWNERS, MANAGERS, directors, or officers of the pawnshop, and      105          

employees of the applicant to a police record check; and           107          

                                                          3      


                                                                 
      (4)  Liquid assets in a minimum amount of twenty-five ONE    109          

HUNDRED thousand dollars at the time of applying for initial       111          

licensure and demonstration of the ability to maintain the liquid  112          

assets at a minimum amount of ten FIFTY thousand dollars for the   113          

duration of holding a valid pawnbroker's license.                  115          

      (B)  The division of financial institutions SUPERINTENDENT   117          

may grant a license to act as a pawnbroker to any person of good   118          

character and having experience and fitness in the capacity        120          

involved to engage in the business of pawnbroking upon the         121          

payment to the division SUPERINTENDENT of a license fee            122          

determined by the superintendent pursuant to section 1321.20 of    123          

the Revised Code.  A LICENSE IS NOT TRANSFERABLE OR ASSIGNABLE.    124          

      (C)  THE SUPERINTENDENT MAY CONSIDER AN APPLICATION          127          

WITHDRAWN AND MAY RETAIN THE INVESTIGATION FEE IF BOTH OF THE      128          

FOLLOWING ARE TRUE:                                                             

      (1) AN APPLICATION FOR A LICENSE DOES NOT CONTAIN ALL OF     130          

THE INFORMATION REQUIRED UNDER DIVISION (B) OF THIS SECTION.       131          

      (2) THE INFORMATION IS NOT SUBMITTED TO THE SUPERINTENDENT   133          

WITHIN NINETY DAYS AFTER THE SUPERINTENDENT REQUESTS THE           134          

INFORMATION FROM THE APPLICANT IN WRITING.                         135          

      (D)  The division SUPERINTENDENT shall require an applicant  138          

for a pawnbroker's license to pay to it THE SUPERINTENDENT a       139          

nonrefundable initial investigation fee of two hundred dollars,    141          

which is for the exclusive use of the state. The license shall be  142          

issued by the division SUPERINTENDENT and shall expire on the      144          

thirtieth day of June next following the date of its issuance.     145          

Fifty per cent of the annual license fee shall be for the use of   146          

the state, and fifty per cent shall be paid by the state to the    147          

municipal corporation, or if outside the limits of any municipal   148          

corporation, to the county, in which the office of the licensee    149          

is located.  All such fees payable to municipal corporations or    150          

counties shall be paid annually.                                                

      (E)  Every such PAWNBROKER'S license shall be renewed        152          

annually by the thirtieth day of June according to the standard    154          

                                                          4      


                                                                 
renewal procedure of Chapter 4745. of the Revised Code.  The fee   155          

for renewal of a license shall be equivalent to the fee for an     156          

initial license established by the superintendent pursuant to      157          

section 1321.20 of the Revised Code.  Any licensee who wishes to   158          

renew the licensee's PAWNBROKER'S license but who fails to do so   159          

on or before the thirtieth day of June shall reapply for           162          

licensure in the same manner and pursuant to the same              163          

requirements as for initial licensure, unless the licensee pays    164          

to the division SUPERINTENDENT on or before the thirty-first day   167          

of August of the year the license expires, a late renewal penalty  168          

of one hundred dollars in addition to the regular renewal fee.     169          

Any person LICENSEE who fails to renew the person's license on or  170          

before the thirtieth day of June is prohibited from acting as a    172          

pawnbroker until the person's license is renewed or a new license  173          

is issued under this section.  Any person LICENSEE who renews a    174          

license between the first day of July and the thirty-first day of  176          

August is not relieved from complying with this division.  The     177          

division SUPERINTENDENT may refuse to issue to or renew the        179          

license of any person LICENSEE who violates this division.         180          

      (F)  No license shall be granted to any person not a         182          

resident of or the principal office of which is not located in     183          

the municipal corporation or county designated in such license     184          

unless such THAT applicant, in writing and in due form approved    186          

by and filed with the division SUPERINTENDENT, first appoints an   187          

agent, a resident of the state, and city or county where the       189          

office is to be located, upon whom all judicial and other          190          

process, or legal notice, directed to the applicant may be         191          

served.  In case of the death, removal from the state, or any      192          

legal disability or any disqualification of any such agent,        193          

service of such process or notice may be made upon the             194          

superintendent.                                                                 

      The division SUPERINTENDENT may, upon notice to the          196          

licensee and reasonable opportunity to be heard, suspend or        197          

revoke any license or assess a penalty against the licensee if     198          

                                                          5      


                                                                 
the licensee, or the licensee's officers, agents, or employees,    199          

has violated sections 4727.01 to 4727.16 of the Revised Code THIS  200          

CHAPTER.  Any penalty shall be appropriate to the violation but    202          

in no case shall the penalty be less than two hundred nor more     203          

than two thousand dollars. Whenever, for any cause, a license is   204          

suspended or revoked, the division SUPERINTENDENT shall not issue  205          

another license to the licensee nor to the legal spouse of the     207          

licensee, nor to any copartnership or corporation BUSINESS ENTITY  208          

of which the licensee is an officer OR MEMBER OR PARTNER, nor to   209          

any person employed by the licensee, until the expiration of at    210          

least one year TWO YEARS from the date of revocation or            213          

suspension of the license.  The division SUPERINTENDENT shall      214          

deposit all penalties allocated pursuant to this section into the  216          

state treasury to the credit of the consumer finance fund.         217          

      Any proceedings for the revocation or suspension of a        219          

license or to assess a penalty against a licensee are subject to   220          

Chapter 119. of the Revised Code.                                  221          

      (C)(G)  If a licensee surrenders or chooses not to renew     223          

the licensee's PAWNBROKER'S license, the licensee shall notify     224          

the superintendent thirty days prior to the date on which the      225          

licensee intends to close the licensee's business as a             226          

pawnbroker.  Prior to the date, the licensee shall do either of    227          

the following with respect to all active loans:                    228          

      (1)  Dispose of an active loan by selling the loan to        230          

another person holding a valid pawnbroker's license issued under   231          

this section;                                                      232          

      (2)  Reduce the rate of interest on pledged articles held    234          

as security for a loan to eight per cent per annum or less         235          

effective on the date that the pawnbroker's license is no longer   236          

valid.                                                             237          

      (D)  The director of commerce may compel, by subpoena,       239          

witnesses to appear and testify in relation to investigations      240          

under this chapter and may require, by subpoena duces tecum, the   241          

production of any book, paper, or document pertaining to an        242          

                                                          6      


                                                                 
investigation under this chapter.  If a person fails to comply     243          

with a subpoena or subpoena duces tecum issued under this          244          

division, the director may apply to the court of common pleas in   245          

the county where the investigation is being conducted for an       246          

order compelling the person to comply with the subpoena or         247          

subpoena duces tecum or, for failure to do so, to be held in       248          

contempt of court.                                                 249          

      (E)  A pawnbroker licensed under this section shall          251          

maintain liquid assets of at least ten thousand dollars for the    252          

duration that the licensee holds a valid pawnbroker's license      253          

issued pursuant to this section.                                   254          

      Sec. 4727.04.  (A)  Application AN APPLICATION for a         263          

pawnbroker's license shall state fully the name and address of     265          

the person, or corporation, APPLICANT and of every member of the   266          

firm, partnership, or association, authorized to do business       268          

thereunder, PARTNER, STOCKHOLDER, OR OWNER OF AN APPLICANT, and    269          

the location of the office or place of business in which the       270          

business is conducted; and in the case of a corporation, shall     271          

also state the date and place of its incorporation, the name and   272          

address of its manager, the names and addresses of its directors,  273          

the name and address of the agent as provided in section 4727.03   274          

of the Revised Code, and any other information required by the     275          

division SUPERINTENDENT of financial institutions in the           277          

department of commerce.                                            278          

      The license shall be kept posted in a conspicuous place in   280          

the office where the business is transacted.  No person so         281          

licensed shall transact or solicit business under any other name   282          

or at any location other than at the address stated in the         283          

person's license.  No licensee may move the licensee's business    285          

location without prior notification to the superintendent of       286          

financial institutions of at least thirty days.  If the licensee   287          

moves out of the municipal corporation or county in which the      289          

licensee was originally licensed, the licensee shall pay an        290          

additional annual license fee to be distributed in accordance      291          

                                                          7      


                                                                 
with section 4727.03 of the Revised Code.                          292          

      (B)  A person licensed as a pawnbroker shall post a          294          

conspicuous notice in its place of business, visible to all        295          

patrons, in a form and at places designated by rule of the         296          

division, that the licensee has no right to retain goods stolen    298          

from the true owner, and that the owner may recover the goods or   299          

their value from the pawnbroker in an action at law, or, in the    300          

event the police take custody of the goods, by police release      301          

pursuant to section 2933.41 of the Revised Code.                                

      (C)  The superintendent may issue to a pawnbroker licensed   304          

under this chapter a temporary exhibition permit pursuant to       305          

division (C)(1) of section 4728.04 of the Revised Code.            306          

      (1)  A LICENSEE WHO WISHES TO BE ISSUED A TEMPORARY PERMIT   308          

PURSUANT TO DIVISION (C)(1) OF SECTION 4728.04 OF THE REVISED      309          

CODE SHALL MAKE REQUEST FOR SUCH ISSUANCE BY LETTER ADDRESSED TO   310          

THE SUPERINTENDENT.  THE LETTER OF REQUEST SHALL CONTAIN THE       311          

LICENSEE'S NAME, PERMANENT BUSINESS ADDRESS, AND LICENSE NUMBER.   312          

      (2)  UPON RECEIPT OF A TEMPORARY EXHIBITION PERMIT, THE      314          

PERMIT HOLDER SHALL CONSPICUOUSLY DISPLAY THE PERMIT AT THE PLACE  315          

WHERE THE PERMIT HOLDER TRANSACTS BUSINESS AT ANY AUCTION,         317          

CONVENTION, EXHIBITION, FAIR, OR SHOW.                                          

      (3)  EVERY PERMIT HOLDER WHO WISHES TO PARTICIPATE IN AN     319          

AUCTION, CONVENTION, EXHIBITION, FAIR, OR SHOW, AT LEAST TWO       320          

WEEKS PRIOR TO ITS OPENING, SHALL NOTIFY THE SUPERINTENDENT OR     321          

THE CHIEF OF POLICE OF THE MUNICIPAL CORPORATION IN WHICH THE      322          

EVENT IS TO TAKE PLACE, OR IF THE EVENT IS TO TAKE PLACE OUTSIDE   324          

OF ANY MUNICIPAL CORPORATION, THEN THE SHERIFF OF THE COUNTY IN                 

WHICH THE EVENT IS TO TAKE PLACE.  SUCH NOTIFICATION SHALL BE BY   326          

LETTER AND SHALL INCLUDE THE PERMIT HOLDER'S NAME, PERMANENT       327          

BUSINESS ADDRESS, AND PERMIT NUMBER, AND THE PLACE WHERE THE       328          

EVENT IS SCHEDULED TO BE HELD.                                                  

      (C)  EVERY LICENSEE SHALL POST AT THE MAIN DOOR OF THE       330          

LICENSEE'S PLACE OF BUSINESS THE HOURS OR TIMES WHEN THE           331          

ESTABLISHMENT IS OPEN FOR BUSINESS.  NO LICENSEE SHALL COLLECT     332          

                                                          8      


                                                                 
INTEREST AND STORAGE ON ANY LOAN FOR ANY REGULAR BUSINESS DAY      333          

THAT THE ESTABLISHMENT IS NOT OPEN FOR BUSINESS AS POSTED, UNLESS  334          

PRIOR NOTICE OF A CLOSING IS POSTED ON THE DOOR OR THE CLOSING IS  335          

OCCASIONED BY AN ACT OF GOD, UNFORESEEN EMERGENCY, OR OTHER EVENT               

BEYOND THE CONTROL OF THE LICENSEE.  A LICENSEE SHALL NOTIFY THE   336          

SUPERINTENDENT OF ANY CHANGE IN THE POSTED HOURS OF OPERATION.     337          

      (D)  NO LICENSEE SHALL FAIL TO OBSERVE THE POSTED HOURS OF   339          

OPERATION PURSUANT TO DIVISION (C) OF THIS SECTION EXCEPT AS       340          

AUTHORIZED BY THAT DIVISION.                                       341          

      Sec. 4727.05.  The superintendent of financial institutions  350          

shall, either personally, or by such person as the superintendent  352          

may appoint for the purpose, at least once a year EVERY EIGHTEEN   353          

MONTHS, and more often if deemed advisable, investigate the        354          

business of every person licensed as a pawnbroker, and of every    355          

person, copartnership, and corporation by whom or for which any    356          

such loan or purchase shall be made, whether such person,          357          

copartnership, or corporation shall act, or claim to act, as       358          

principal, agent, or broker, or under or without the authority of  359          

sections 4727.01 to 4727.16 of the Revised Code THIS CHAPTER, and  360          

for that purpose shall have free access to all the pledged or      362          

purchased articles, books, and all papers relating to the          363          

licensee's business.  The superintendent and every examiner may    364          

examine, under oath or affirmation, any person whose testimony     365          

may relate to any business coming within sections 4727.01 to       366          

4727.16 of the Revised Code THIS CHAPTER.                                       

      Sec. 4727.06.  (A)  No pawnbroker shall charge, receive, or  375          

demand interest for any loan in excess of five per cent per month  376          

or fraction of a month on the unpaid principal.  INTEREST SHALL    377          

BE COMPUTED ON A MONTHLY BASIS ON THE AMOUNT OF THE PRINCIPAL      378          

REMAINING UNPAID ON THE FIRST DAY OF THE MONTH AND SHALL NOT BE    379          

COMPOUNDED.                                                                     

      (B)  In addition to such THE rate of interest, the           382          

LIMITATION IMPOSED PURSUANT TO DIVISION (A) OF THIS SECTION, THE   383          

licensee may make a total charge for the storage of pledged        385          

                                                          9      


                                                                 
articles held as security for a loan, a sum not exceeding two NO   386          

MORE THAN:                                                                      

      (1)  THREE dollars per month or fraction of a month for all  389          

pledged articles held as security OR STORED for a loan, to be                   

agreed to in writing at the time the loan is made; in instances    390          

where the licensee is to deliver or forward the pledged article    391          

by express or parcel post, the licensee may make an additional     392          

charge of three                                                    393          

      (2)  FOUR dollars plus the actual cost of shipping.  The,    396          

WHEN THE licensee may make an additional charge of one dollar IS   397          

TO DELIVER OR FORWARD THE PLEDGED ARTICLE BY EXPRESS OR PARCEL     398          

POST TO THE PLEDGOR;                                               400          

      (3)  TWO DOLLARS for the loss of the original statement      403          

issued to the pledgor by the licensee pursuant to section 4727.07  404          

of the Revised Code upon redemption of the pledged articles.  The  405          

licensee also may make a charge of one dollar;                     406          

      (4)  TWO DOLLARS for the cost of notifying a pledgor by      408          

mail that the pledged articles may be forfeited to the licensee    410          

pursuant to section 4727.11 of the Revised Code.  The interest     411          

and charges shall not be deducted or paid in advance of the dates  412          

that the interest and charges are due, except upon redemption of   413          

the pledged articles.                                              414          

      (B)  Subject to the maximum amount upon which interest may   416          

be computed pursuant to division (A) of this section, monthly      417          

interest charges shall be computed monthly on the amount of the    418          

principal remaining unpaid on the first day of that month and      419          

shall not be compounded.                                           420          

      (C)  A licensee who complies with the requirements or        422          

procedures of this state pursuant to the application of the        423          

"Brady Handgun Violence Protection Act," Pub. L. No. 103-159, 107  424          

Stat. 1536 (1993), 18 U.S.C.A. 922 (AS AMENDED), may charge any    426          

fee the licensee is required by law to pay in order to comply      427          

with such requirements or procedures.  The licensee also may       428          

charge a fee of NO MORE THAN two dollars for providing services    429          

                                                          10     


                                                                 
in compliance with such requirements or procedures.                430          

      (D)  A PLEDGOR MAY PAY A PORTION OF THE OUTSTANDING          432          

PRINCIPAL LOAN BALANCE AT ANY TIME.  A PLEDGOR MAY REDEEM A PAWN   433          

LOAN AT ANY TIME AFTER SEVENTY-TWO HOURS HAVE PASSED SINCE THE     434          

PLEDGE WAS MADE.  A PLEDGOR MAY NOT PREPAY INTEREST OR STORAGE     436          

CHARGES, EXCEPT WHEN THE PLEDGOR REDEEMS THE PLEDGED PROPERTY.     437          

      Sec. 4727.08.  (A)  Every person licensed as a pawnbroker    448          

shall keep and use separate pawn forms and purchase forms to be    449          

approved by the superintendent of the division of financial        451          

institutions in the department of commerce.  The forms                          

      (B)  THE LICENSEE shall disclose, at the time RECORD ON THE  454          

APPROPRIATE FORM FOR each purchase PAWN or loan is made, an        455          

accurate description of the goods, articles, or things deposited,  456          

the PURCHASE ALL OF THE FOLLOWING INFORMATION:                     457          

      (1)  THE DATE AND time of THE pledging or selling them, the  460          

PURCHASING;                                                                     

      (2)  THE amount of money loaned on them or paid for them,    464          

the LOAN OR THE PURCHASE PRICE;                                                 

      (3)  THE rate of interest and THE charges to be paid on      468          

such THE loan, the;                                                469          

      (4)  THE time within which such pawn THE PLEDGOR is to be    472          

redeemed, with REDEEM the PLEDGED PROPERTY;                        473          

      (5)  THE  name, age, place of residence, AND ADDRESS OF THE  476          

PLEDGOR OR SELLER;                                                              

      (6)  A driver's or commercial driver's license number,       479          

social security MILITARY IDENTIFICATION number, or other personal  481          

identification, and a short NUMBER;                                482          

      (7)  A physical description of the person of the pledgor or  485          

seller.  When any item is pledged or sold, the licensee also       487          

shall write on such form;                                                       

      (8)  AN ACCURATE DESCRIPTION OF THE PLEDGED OR PURCHASED     490          

PROPERTY, INCLUDING the name of the maker MANUFACTURER, the ANY    491          

serial and model numbers, or other ANY identifying features;, and  493          

where jewelry or gold or silver articles of any kind are pledged   495          

                                                          11     


                                                                 
or sold, the licensee shall write on the form all identifying      496          

letters or marks inscribed thereon;                                497          

      (9)  ANY OTHER DISCLOSURES REQUIRED BY FEDERAL LAW.  One     500          

      (C)  A copy of the forms EACH FORM USED IN A PAWN OR         502          

PURCHASE shall be kept at all times in numerical order in an       504          

active or inactive file, as appropriate, or bound books available  505          

AND THE LICENSEE SHALL ACCOUNT for inspection by the division;     506          

all FORM numbers shall be accountable.  Such                       507          

      (D)  THE records and forms, at all times, shall be kept at   510          

the licensed location and open to the AVAILABLE FOR inspection of  511          

BY the superintendent or the chief of police of the municipal      513          

corporation, a police officer deputed or authorized by the chief   514          

of police, or the mayor of the OR TOWNSHIP IN WHICH THE            515          

LICENSEE'S PLACE OF BUSINESS IS LOCATED, OR IF THE PLACE OF        517          

BUSINESS IS NOT LOCATED WITHIN A municipal corporation OR                       

TOWNSHIP, THEN THE SHERIFF OF THE COUNTY IN WHICH THE PLACE OF     519          

BUSINESS IS LOCATED.  Upon demand of any of them, such person so   521          

licensed THE LICENSEE shall produce and show ANY records, forms,   522          

and pledges, or purchases which are in the person's LICENSEE'S     524          

possession.                                                                     

      (E)  Except in the case of a pledged motor vehicle,          526          

watercraft, or outboard motor, the licensee shall keep all         528          

pledges and purchases at the licensee's place of business unless   529          

a pledgor, IN WRITING, agrees otherwise at the time the pledge is  531          

made.  If the item pledged for the pawn loan is a motor vehicle,   532          

watercraft, or outboard motor, the pawnbroker LICENSEE shall take  533          

possession of both the motor vehicle, watercraft, or outboard      534          

motor and the certificate of title to the motor vehicle,           535          

watercraft, or outboard motor, and shall keep the certificate at   537          

the pawnbroker's LICENSEE'S place of business but, upon            538          

notification to the pledgor, may keep the motor vehicle,           540          

watercraft, or outboard motor at a location other than the                      

pawnbroker's LICENSEE'S place of business.  No pledge shall be     542          

removed from the place of business for the licensee's personal     543          

                                                          12     


                                                                 
use or gain.                                                                    

      (F)  EVERY PERSON LICENSED AS A PAWNBROKER UNDER THIS        545          

CHAPTER SHALL KEEP AND USE AN INTELLIGIBLE SET OF BOOKS AND        547          

RECORDS IN THE ENGLISH LANGUAGE IN COMPLYING WITH THIS CHAPTER     548          

WITH RESPECT TO RECORDING THE DETAILS OF EACH PURCHASE OR LOAN.    549          

EXCEPT AS PROVIDED IN DIVISION (J) OF THIS SECTION, ALL            551          

INFORMATION REQUIRED TO BE RECORDED BY THIS CHAPTER SHALL BE       552          

ENTERED IN A BOUND BOOK OR ON LOOSE-LEAF, PERMANENT FORMS USED                  

EXCLUSIVELY FOR THAT PURPOSE.  FORMS SHALL BE IDENTICAL AND        553          

CONSECUTIVELY NUMBERED, AND EACH SHALL CONTAIN TWO OR MORE PAGES.  554          

ONE PART OF EACH FORM SHALL BE DETACHABLE AND, WHEN COMPLETED,     555          

SHALL SERVE AS THE STATEMENT TO BE GIVEN BY THE LICENSEE TO THE    556          

PLEDGOR OR SELLER AS PROVIDED BY SECTION 4727.07 OF THE REVISED    557          

CODE.  THE REMAINING PART OF THE FORM SHALL BE RETAINED IN THE                  

LICENSEE'S PERMANENT RECORDS.  ALL FORMS SHALL BE ACCOUNTED FOR.   558          

      (G)  NO LICENSEE SHALL REQUIRE A BORROWER TO AFFIX THE       561          

BORROWER'S SIGNATURE TO A BLANK OR PARTIALLY FILLED OUT PAWN FORM  562          

OR OTHER RECORD.                                                                

      (H)  EVERY LICENSEE SHALL PRESERVE THE LICENSEE'S BOOKS,     564          

FORMS, ACCOUNTS, AND RECORDS FOR AT LEAST TWO YEARS AFTER MAKING   565          

THE FINAL ENTRY REGARDING ANY PURCHASE OR PLEDGE OF PROPERTY       566          

RECORDED THEREIN.                                                               

      (I)  ALL PAWN AND PURCHASE FORMS, LEGAL NOTICES, AND         568          

PAYMENT RECEIPT FORMS SHALL REFLECT THE NAME UNDER WHICH THE       569          

LICENSEE IS REGISTERED WITH THE SUPERINTENDENT AND THE COMPLETE    570          

ADDRESS OF THE PLACE OF BUSINESS.                                               

      (J)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, A  572          

LICENSEE MAY USE OTHER METHODS OF RECORDING DATA, KEEPING          573          

RECORDS, AND KEEPING BOOKS, SUCH AS ELECTRONIC OR COMPUTERIZED     574          

METHODS, IN LIEU OF THE METHODS DESCRIBED IN THIS SECTION,         576          

PROVIDED WRITTEN PRINTOUTS OR HARD COPIES OF THE REQUIRED DATA     577          

ARE READILY AVAILABLE IN A FORM APPROVED, IN ADVANCE, BY THE       578          

SUPERINTENDENT.                                                                 

      Sec. 4727.09.  Each (A)  A PERSON LICENSED AS A pawnbroker   588          

                                                          13     


                                                                 
shall, every business day, make available FURNISH THE FOLLOWING    589          

INFORMATION to the chief of police or the head of the police       590          

department, on forms to be furnished by the police department, a   591          

OF THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH THE LICENSEE'S   592          

PLACE OF BUSINESS IS LOCATED, OR IF THE PLACE OF BUSINESS IS NOT   594          

LOCATED WITHIN A MUNICIPAL CORPORATION OR TOWNSHIP, THEN THE       595          

SHERIFF OF THE COUNTY IN WHICH THE PLACE OF BUSINESS IS LOCATED:   597          

      (1)  A description of all articles received PROPERTY         599          

PLEDGED WITH OR PURCHASED by him by pledge or sale on the          601          

business day immediately preceding, together with the number of    602          

the ticket issued THE LICENSEE;                                                 

      (2)  THE NUMBER OF THE PAWN OR PURCHASE FORM THE LICENSEE    604          

USED TO DOCUMENT THE PLEDGE OR PURCHASE.                           605          

      (B)  A LICENSEE SHALL PROVIDE THE PROPERTY DESCRIPTION AND   607          

FORM NUMBER REQUIRED BY DIVISION (A) OF THIS SECTION ON THE FORM   608          

FURNISHED BY THE LAW ENFORCEMENT OFFICER REQUESTING THE            609          

INFORMATION.  THE COMPLETED FORM MAY BE COMMUNICATED BY            610          

ELECTRONIC TRANSFER OR BE IN A MAGNETIC MEDIA FORMAT.              611          

      (C)  FOR THE PURPOSES OF THIS SECTION, A LICENSEE NEED       613          

PROVIDE ONLY THE INFORMATION REQUIRED BY DIVISION (A) OF THIS      614          

SECTION.                                                                        

      Sec. 4727.10.  No PERSON LICENSED AS A pawnbroker shall      623          

receive any pledge or purchase any articles from any minor, or     625          

from any person who is at the time intoxicated or under the        626          

influence of a controlled substance, or from any person who is     627          

known or believed by the licensee to be a thief, or a receiver of  628          

stolen property, OR FROM ANY PERSON IDENTIFIED IN WRITING TO THE   629          

LICENSEE BY THE CHIEF OF POLICE OF A MUNICIPAL CORPORATION OR      630          

TOWNSHIP, SHERIFF, OR THE STATE HIGHWAY PATROL AS A KNOWN OR       632          

SUSPECTED THIEF OR RECEIVER OF STOLEN PROPERTY.                    633          

      Sec. 4727.11.  (A)  If any person receiving a loan from a    642          

pawnbroker on a pledge of personal property A PLEDGOR fails to     643          

redeem or pay interest on any articles pledged within TO A PERSON  645          

LICENSED AS A PAWNBROKER ON A PAWN LOAN FOR two months from the    646          

                                                          14     


                                                                 
date of the loan or the date on which the last interest payment    647          

is due, the licensee shall notify the pledgor by mail, with proof  648          

of mailing, to the last place of address given by the pledgor,     649          

that unless the pledge or PLEDGOR REDEEMS THE PLEDGED property is  651          

redeemed OR PAYS ALL INTEREST DUE AND STORAGE CHARGES within one   652          

month THIRTY DAYS from the date the notice is mailed, it THE       653          

PLEDGED PROPERTY shall be forfeited to the licensee.  If the       655          

pledgor fails to redeem the property OR PAY ALL INTEREST DUE AND   656          

STORAGE CHARGES within the period specified in the notice, the     657          

licensee shall proceed to take ownership BECOMES THE OWNER of the  659          

pledge or PLEDGED property.                                                     

      (B)  In the event that any article or property is redeemed   661          

by a person other than the pledgor, the pledgor shall sign his     662          

THE PLEDGOR'S copy of the statement required under section         664          

4727.07 of the Revised Code, which copy shall be presented by the  665          

person to the licensee.  The licensee shall verify the name of     666          

the person redeeming the article or property, and shall record     667          

the person's name, AND driver's or commercial driver's license     668          

number, or social security number OTHER PERSONAL IDENTIFICATION    671          

NUMBER, on the licensee's copy of the statement, and shall         673          

require the person to sign this copy.                                           

      (C)  In the event that any articles or property pledged are  675          

lost or rendered inoperable due to negligence of the licensee,     676          

the licensee shall replace the articles or property with           677          

identical articles or property, except that if the licensee        678          

cannot reasonably obtain identical articles or property, the       679          

licensee shall replace the articles or property with like          680          

articles or property.                                              681          

      (D)  WHEN AN ACCOUNT IS PAID IN FULL, THE LICENSEE SHALL     683          

RETURN THE PLEDGED ARTICLE IMMEDIATELY TO THE PLEDGOR.  IN THE     684          

EVENT THE PLEDGOR SELLS, TRANSFERS, OR ASSIGNS THE PLEDGE, THE     685          

LICENSEE SHALL VERIFY THE NAME OF THE PERSON REDEEMING THE PLEDGE  686          

AND RECORD THAT PERSON'S NAME, DRIVER'S LICENSE NUMBER, AND        687          

SIGNATURE ON THE PERMANENT COPY OF THE STATEMENT OF PLEDGE         688          

                                                          15     


                                                                 
REQUIRED PURSUANT TO SECTION 4727.07 OF THE REVISED CODE.  THE     689          

LICENSEE ALSO SHALL OBTAIN THE SIGNATURE OF THE PLEDGOR, OR OTHER  690          

PERSON REDEEMING THE PLEDGE, UPON A SEPARATE RECORD OF THE         692          

TRANSACTION, THAT ACKNOWLEDGES THE TOTAL DOLLAR AMOUNT PAID FOR                 

REDEMPTION AND THE DATE OF REDEMPTION.  ALL RECORDS SHALL BE KEPT  693          

IN THE LICENSEE'S PLACE OF BUSINESS.                               694          

      Sec. 4727.12.  (A)  A PERSON LICENSED AS A pawnbroker shall  703          

retain any and all goods or articles pledged with him THE          705          

LICENSEE until the expiration of seventy-two hours after the       707          

pledge was IS made, and shall retain any goods or articles         709          

purchased by him THE LICENSEE until the expiration of fifteen      711          

days after the purchase was IS made.  The licensee may dispose of  712          

such goods or articles sooner with the written permission of the   713          

local CHIEF OF THE police department OF THE MUNICIPAL CORPORATION  714          

OR TOWNSHIP IN WHICH THE LICENSEE'S PLACE OF BUSINESS IS LOCATED,  715          

OR IF THE PLACE OF BUSINESS IS NOT LOCATED WITHIN A MUNICIPAL      716          

CORPORATION OR TOWNSHIP, THEN THE SHERIFF OF THE COUNTY IN WHICH   718          

THE BUSINESS IS LOCATED.                                                        

      (B)  If the chief OF POLICE or head of the police            720          

department SHERIFF to whom the licensee made MAKES available the   722          

information required by section 4727.09 of the Revised Code has    724          

probable cause to believe that the article described therein is    725          

stolen property, he THE CHIEF OR SHERIFF shall notify the          727          

licensee in writing.  Upon receipt of such a notice, the licensee  728          

shall retain the article until the expiration of thirty days       729          

after the day on which he THE LICENSEE is first required to make   730          

available the information required by section 4727.09 of the                    

Revised Code, unless the chief or the head of the police           731          

department SHERIFF notifies the licensee in writing that he THE    733          

LICENSEE is not required to retain the article until such          734          

expiration.                                                                     

      (C)  If the chief or the head of the local police            736          

department SHERIFF receives a report that property has been        737          

stolen and determines the identity of the true owner of the        738          

                                                          16     


                                                                 
allegedly stolen property that has been purchased or pawned and    739          

are IS held by a licensee, and informs the licensee of the true    740          

owner's identity, the licensee may restore the allegedly stolen    741          

property to the true owner directly.                               742          

      If a licensee fails to restore the allegedly stolen          744          

property, the true owner may recover the property from the         746          

licensee in an action at law.                                                   

      (D)  If the licensee returns the allegedly stolen property   748          

to the true owner, the licensee may charge the person who pledged  749          

or sold the allegedly stolen property to him THE LICENSEE, and     750          

any person who acted in consort with the pledgor or the seller to  752          

defraud the licensee, the amount the licensee paid or loaned for   753          

the allegedly stolen property, plus interest and storage charges   754          

provided for in section 4727.06 of the Revised Code.               755          

      Sec. 4727.13.  (A)  The superintendent of financial          764          

institutions shall adopt rules in accordance with Chapter 119. of  765          

the Revised Code for the administration and enforcement of         766          

sections 4727.01 to 4727.16 of the Revised Code THIS CHAPTER.      767          

      (B)  The superintendent shall enforce sections 4727.01 to    769          

4727.16 of the Revised Code THIS CHAPTER, make all reasonable      770          

effort to discover alleged violators, notify the proper            772          

prosecuting officer whenever the superintendent has reasonable     773          

grounds to believe that a violation has occurred, act as           775          

complainant in the prosecution thereof, and aid such officers to   776          

the best of the superintendent's ability in such prosecutions.     777          

The superintendent shall employ such deputies as may be necessary  778          

to make the investigations and inspections, and otherwise perform  779          

the duties imposed by such sections.                                            

      (C)  THE SUPERINTENDENT MAY ISSUE A CEASE AND DESIST ORDER   781          

AGAINST ANY PERSON THE SUPERINTENDENT REASONABLY SUSPECTS HAS      782          

VIOLATED, IS CURRENTLY VIOLATING, OR IS ABOUT TO VIOLATE THIS      783          

CHAPTER.  THE SUPERINTENDENT MAY APPLY TO A COURT OF COMMON PLEAS  784          

FOR AN ORDER COMPELLING A PERSON TO COMPLY WITH ANY CEASE AND      785          

DESIST ORDER OR ANY SUBPOENA ISSUED BY THE SUPERINTENDENT.                      

                                                          17     


                                                                 
      (D)  THE SUPERINTENDENT MAY OBTAIN FROM THE COURT OF COMMON  787          

PLEAS ANY FORM OF INJUNCTIVE RELIEF AGAINST ANY PERSON THAT HAS    788          

VIOLATED, IS CURRENTLY VIOLATING, OR IS ABOUT TO VIOLATE THIS      789          

CHAPTER.                                                                        

      (E)  TO ENFORCE THIS CHAPTER, THE SUPERINTENDENT MAY ISSUE   791          

A SUBPOENA TO ANY PERSON TO COMPEL THE PRODUCTION OF ANY ITEM,     792          

RECORD, OR WRITING, INCLUDING AN ELECTRONIC WRITING, AND MAY       793          

ISSUE A SUBPOENA TO ANY PERSON TO COMPEL THE APPEARANCE AND        794          

RENDERING OF TESTIMONY.                                                         

      (F)  THE SUPERINTENDENT MAY EXAMINE AND INVESTIGATE THE      796          

BUSINESS, INCLUDING THE BUSINESS LOCATION AND ANY BOOKS, RECORDS,  797          

WRITINGS, INCLUDING ELECTRONIC WRITINGS, SAFES, FILES, OR STORAGE  798          

AREAS LOCATED IN OR UTILIZED BY THE BUSINESS LOCATION, OF ANY      799          

PERSON THE SUPERINTENDENT REASONABLY SUSPECTS TO BE ADVERTISING,   800          

TRANSACTING, OR SOLICITING BUSINESS AS A PAWNBROKER.  THE                       

SUPERINTENDENT MAY REQUEST THE ATTENDANCE AND ASSISTANCE OF THE    801          

APPROPRIATE CHIEF OF POLICE OF A MUNICIPAL CORPORATION OR          802          

TOWNSHIP, THE COUNTY SHERIFF, OR THE STATE HIGHWAY PATROL DURING   803          

THE EXAMINATION AND INVESTIGATION OF THE BUSINESS.                 804          

      Sec. 4727.14.  Sections 4727.01 to 4727.15 of the Revised    813          

Code do THIS CHAPTER DOES not apply to persons who obtain          814          

licenses under sections 1321.01 to 1321.19 or 1321.51 to 1321.60   816          

of the Revised Code, or to national banks, state banks, or                      

FEDERALLY INSURED DEPOSITORY INSTITUTIONS SUCH AS A STATE OR       817          

FEDERALLY CHARTERED BANK, savings and loan associations            819          

ASSOCIATION, or credit unions UNION.                               820          

      Sec. 4727.15.  (A)  No person, firm, partnership,            829          

corporation, or association LICENSED AS A PAWNBROKER UNDER THIS    830          

CHAPTER, and no agent, officer, or employee thereof, shall         831          

violate sections 4727.01 to 4727.15 of the Revised Code THIS       832          

CHAPTER.  The division of financial institutions upon criminal     833          

conviction shall revoke any license issued to such person, firm,   834          

partnership, corporation, or association.  The division also may   835          

assess a penalty against or revoke or suspend the license of any   836          

                                                          18     


                                                                 
licensee in accordance with section 4727.03 of the Revised Code    837          

upon a criminal conviction of the licensee for any criminal        838          

offense.                                                                        

      (B)  UPON THE CRIMINAL CONVICTION OF A LICENSEE OR ANY       840          

EMPLOYEE, MANAGER, OFFICER, DIRECTOR, SHAREHOLDER, MEMBER, OR      841          

PARTNER OF A LICENSEE FOR A VIOLATION OF THIS CHAPTER, THE         843          

SUPERINTENDENT OF FINANCIAL INSTITUTIONS MAY SUSPEND THE LICENSE   844          

OF THE LICENSEE WITHOUT A PRIOR HEARING TO PROTECT THE PUBLIC      845          

INTEREST AND SUBSEQUENTLY MAY ACT TO REVOKE THE LICENSE OF THE     846          

LICENSEE PURSUANT TO CHAPTER 119. OF THE REVISED CODE.             847          

      (C)  UPON THE CRIMINAL CONVICTION OF A LICENSEE OR ANY       849          

EMPLOYEE, MANAGER, OFFICER, DIRECTOR, SHAREHOLDER, MEMBER, OR      850          

PARTNER OF A LICENSEE UNDER ANY SECTION IN TITLE XXIX OF THE       851          

REVISED CODE OR UNDER FEDERAL LAW FOR THEFT, RECEIVING STOLEN      852          

PROPERTY, OR MONEY LAUNDERING, THE SUPERINTENDENT MAY SUSPEND THE  853          

LICENSE OF THE LICENSEE WITHOUT A PRIOR HEARING TO PROTECT THE                  

PUBLIC INTEREST AND MAY ACT TO REVOKE THE LICENSE OF THE LICENSEE  855          

PURSUANT TO CHAPTER 119. OF THE REVISED CODE.                      856          

      (D)  UPON THE CRIMINAL CONVICTION OF A LICENSEE UNDER ANY    858          

SECTION OF TITLE XXIX OF THE REVISED CODE OR UNDER FEDERAL LAW     859          

FOR A CRIME OTHER THAN THEFT, RECEIVING STOLEN PROPERTY, OR MONEY  860          

LAUNDERING, THE SUPERINTENDENT MAY ASSESS A PENALTY AGAINST THE    861          

LICENSEE OR ACT TO REVOKE OR SUSPEND THE LICENSE OF THE LICENSEE   862          

PURSUANT TO CHAPTER 119. OF THE REVISED CODE.                                   

      Sec. 4727.16.  (A)  A PERSON LICENSED AS A PAWNBROKER UNDER  864          

THIS CHAPTER SHALL STATE THE LICENSE NUMBER ISSUED BY THE          866          

SUPERINTENDENT OF FINANCIAL INSTITUTIONS IN ALL ADVERTISEMENTS,    867          

OFFERS, AND SOLICITATIONS.                                                      

      (B)  NO PERSON NOT LICENSED UNDER THIS CHAPTER MAY           869          

ADVERTISE AS A PAWNBROKER.                                         870          

      (C)  NO PERSON THAT PRODUCES TELEPHONE BOOKS OR SELLS        872          

BILLBOARD OR BROADCAST ADVERTISING, AND NO PERIODICAL PUBLISHERS   874          

AND OTHER ADVERTISING COMPANIES AND MEDIA DOING BUSINESS IN OHIO,  875          

SHALL ACCEPT OR CONTRACT FOR ANY PAWNBROKER LISTING,               876          

                                                          19     


                                                                 
ADVERTISEMENT, OFFER, OR SOLICITATION IN OHIO FROM A PERSON NOT    877          

LICENSED AS A PAWNBROKER UNDER THIS CHAPTER.                                    

      Sec. 4727.17.  (A)  EVERY SALE, TRANSFER, OR HYPOTHECATION   879          

OF ANY STOCK, SECURITY, MEMBERSHIP, PARTNERSHIP, OR OTHER          880          

EQUITABLE, BENEFICIAL, OR OWNERSHIP INTEREST IN A PERSON LICENSED  881          

AS A PAWNBROKER, IN AN AMOUNT REPRESENTING A TEN PER CENT OR       882          

GREATER EQUITABLE, MEMBERSHIP, PARTNERSHIP, BENEFICIAL, OR OTHER   883          

OWNERSHIP INTEREST IN THE LICENSEE, MUST BE APPROVED IN WRITING    884          

BY THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS PRIOR TO THE                    

SALE, TRANSFER, OR HYPOTHECATION OF THE INTEREST IN THE LICENSEE.  885          

      (B)  EVERY PERSON ACQUIRING OR RECEIVING AN INTEREST AS      887          

DESCRIBED IN DIVISION (A) OF THIS SECTION IS SUBJECT TO THE        888          

LICENSING REQUIREMENTS OF THIS CHAPTER AS IF THE PERSON WERE A     889          

NEW AND SEPARATE LICENSE APPLICANT.                                890          

      Sec. 4727.18.  (A)  ANY INFORMATION ARISING FROM, OBTAINED   892          

BY, OR CONTAINED IN AN INVESTIGATION OF A PERSON LICENSED AS A     893          

PAWNBROKER UNDER THIS CHAPTER PERFORMED BY THE SUPERINTENDENT OF   895          

FINANCIAL INSTITUTIONS IS CONFIDENTIAL INFORMATION AND NOT A       896          

PUBLIC RECORD PURSUANT TO CHAPTER 149. OF THE REVISED CODE.        897          

      (B)  ANY INFORMATION ARISING FROM, OBTAINED BY, OR           899          

CONTAINED IN AN INVESTIGATION BY THE SUPERINTENDENT OF ANY PERSON  900          

THE SUPERINTENDENT REASONABLY SUSPECTS HAS VIOLATED OR IS          901          

VIOLATING THIS CHAPTER IS CONFIDENTIAL INFORMATION AND NOT A       902          

PUBLIC RECORD PURSUANT TO CHAPTER 149. OF THE REVISED CODE.        903          

      Sec. 4727.19.  (A)  EFFECTIVE WITH THE TWO-YEAR PERIOD THAT  905          

BEGINS JUNE 30, 2000, AND EVERY TWO-YEAR PERIOD THEREAFTER, EACH   906          

PERSON LICENSED AS A PAWNBROKER UNDER THIS CHAPTER SHALL COMPLETE  907          

BY THE END OF THE PERIOD AT LEAST TWELVE HOURS OF CONTINUING       909          

EDUCATION INSTRUCTION OFFERED IN A COURSE OR PROGRAM APPROVED BY   910          

THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS AFTER CONSULTATION    911          

WITH AN INDUSTRY REPRESENTATIVE SELECTED BY THE SUPERINTENDENT.                 

      (B)  ANY PERSON LICENSED UNDER THIS CHAPTER WHO HAS MORE     913          

THAN THREE EMPLOYEES SHALL DESIGNATE AN INDIVIDUAL TO THE          914          

SUPERINTENDENT AS A SALESPERSON.  EFFECTIVE WITH THE TWO-YEAR      915          

                                                          20     


                                                                 
PERIOD THAT BEGINS JUNE 30, 2000, AND EVERY TWO-YEAR PERIOD        916          

THEREAFTER, A SALESPERSON SHALL COMPLETE BY THE END OF THE PERIOD  917          

AT LEAST EIGHT HOURS OF CONTINUING EDUCATION INSTRUCTION OFFERED   918          

IN A COURSE OR PROGRAM APPROVED BY THE SUPERINTENDENT IN           919          

CONSULTATION WITH A DESIGNATED INDUSTRY REPRESENTATIVE.            920          

      (C)  EACH LOCATION OF THOSE PERSONS LICENSED UNDER THIS      922          

CHAPTER WHO HAVE THREE OR MORE EMPLOYEES SHALL HAVE AT LEAST ONE   925          

SALESPERSON WHO MEETS THE CONTINUING EDUCATION REQUIREMENTS OF     926          

THIS SECTION.                                                                   

      (D)  THE SUPERINTENDENT, IN ACCORDANCE WITH CHAPTER 119. OF  929          

THE REVISED CODE, MAY SUSPEND, REVOKE, OR REFUSE TO RENEW THE                   

LICENSE OF ANY LICENSEE WHO FAILS TO COMPLY WITH THIS SECTION.     930          

      (E)  THE SUPERINTENDENT, IN ACCORDANCE WITH CHAPTER 119. OF  933          

THE REVISED CODE, MAY ADOPT RULES REGARDING CONTINUING EDUCATION                

FEES, LOCATION, TIMES, FREQUENCY, AND WAIVERS OF REQUIREMENTS.     934          

      Sec. 4727.20.  (A)  NO PERSON LICENSED AS A PAWNBROKER       936          

UNDER THIS CHAPTER SHALL CONDUCT BUSINESS IN THIS STATE, UNLESS    938          

THE LICENSEE DOES EITHER OF THE FOLLOWING:                                      

      (1)  MAINTAINS LIQUID ASSETS IN A MINIMUM AMOUNT OF FIFTY    940          

THOUSAND DOLLARS;                                                  941          

      (2)  OBTAINS A SURETY BOND ISSUED BY A BONDING COMPANY OR    944          

INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE.  THE                 

BOND SHALL BE IN FAVOR OF THE SUPERINTENDENT OF FINANCIAL          945          

INSTITUTIONS AND IN THE PENAL SUM OF AT LEAST TWENTY-FIVE          946          

THOUSAND DOLLARS.  THE LICENSEE SHALL FILE A COPY OF THE BOND      947          

WITH THE SUPERINTENDENT.  THE BOND SHALL BE FOR THE EXCLUSIVE      948          

BENEFIT OF ANY PERSON INJURED BY A LICENSEE'S VIOLATION OF THIS    949          

CHAPTER.  THE AGGREGATE LIABILITY OF THE SURETY FOR ANY AND ALL    951          

BREACHES OF THE CONDITIONS OF THE BOND SHALL NOT EXCEED THE PENAL  952          

SUM OF THE BOND.                                                                

      (B)  THE LICENSEE SHALL GIVE NOTICE TO THE SUPERINTENDENT    954          

BY CERTIFIED MAIL OF ANY ACTION THAT IS BROUGHT AGAINST THE        955          

LICENSEE AND OF ANY JUDGMENT THAT IS ENTERED AGAINST THE LICENSEE  956          

BY A PERSON INJURED BY A VIOLATION OF THIS CHAPTER.  THE NOTICE    957          

                                                          21     


                                                                 
SHALL PROVIDE DETAILS SUFFICIENT TO IDENTIFY THE ACTION OR         958          

JUDGMENT AND SHALL BE FILED WITH THE SUPERINTENDENT WITHIN TEN     959          

DAYS AFTER THE COMMENCEMENT OF THE ACTION OR NOTICE TO THE                      

LICENSEE OF ENTRY OF A JUDGMENT.  THE SURETY, WITHIN TEN DAYS      960          

AFTER IT PAYS ANY CLAIM OR JUDGMENT, SHALL GIVE NOTICE TO THE      961          

SUPERINTENDENT BY CERTIFIED MAIL OF THE PAYMENT, WITH DETAILS      962          

SUFFICIENT TO IDENTIFY THE PERSON AND THE CLAIM OR JUDGMENT PAID.  963          

      (C)  WHENEVER THE PENAL SUM OF THE SURETY BOND IS REDUCED    965          

BY ONE OR MORE RECOVERIES OR PAYMENTS, THE LICENSEE SHALL FURNISH  966          

A NEW OR ADDITIONAL BOND UNDER THIS SECTION, SO THAT THE TOTAL OR  967          

AGGREGATE PENAL SUM OF THE BOND OR BONDS EQUALS THE SUM REQUIRED   968          

BY THIS SECTION, OR SHALL FURNISH AN ENDORSEMENT EXECUTED BY THE   969          

SURETY REINSTATING THE BOND TO THE REQUIRED PENAL SUM OF THE       970          

BOND.                                                                           

      (D)  THE LIABILITY OF THE SURETY ON THE BOND TO THE          972          

SUPERINTENDENT AND TO ANY PERSON INJURED BY A VIOLATION OF THIS    973          

CHAPTER IS NOT AFFECTED IN ANY WAY BY ANY MISREPRESENTATION,       974          

BREACH OF WARRANTY, OR FAILURE TO PAY THE PREMIUM, BY ANY ACT OR   975          

OMISSION UPON THE PART OF THE LICENSEE, BY THE INSOLVENCY OR       976          

BANKRUPTCY OF THE LICENSEE, OR BY THE INSOLVENCY OF THE                         

LICENSEE'S ESTATE.  THE LIABILITY FOR ANY ACT OR OMISSION THAT     977          

OCCURS DURING THE TERM OF THE SURETY BOND SHALL BE MAINTAINED AND  978          

IN EFFECT FOR AT LEAST TWO YEARS AFTER THE DATE ON WHICH THE       979          

SURETY BOND IS TERMINATED OR CANCELED.                                          

      (E)  THE LICENSEE SHALL NOT CANCEL THE SURETY BOND EXCEPT    981          

UPON NOTICE TO THE SUPERINTENDENT BY CERTIFIED MAIL, RETURN        982          

RECEIPT REQUESTED.  THE CANCELLATION IS NOT EFFECTIVE PRIOR TO     983          

THIRTY DAYS AFTER THE SUPERINTENDENT RECEIVES THE NOTICE.          984          

      (F)  NO LICENSEE SHALL FAIL TO COMPLY WITH THIS SECTION.     986          

      Sec. 4727.16 4727.21.  The state, through the                995          

superintendent of the division of financial institutions in the    996          

department of commerce, in accordance with this chapter, shall be  997          

IS the sole regulator of persons engaged in business as            999          

pawnbrokers.                                                                    

                                                          22     


                                                                 
      Sec. 4727.99.  (A)  Whoever violates sections 4727.03 to     1,008        

4727.15 4727.21 of the Revised Code is guilty of a misdemeanor of  1,009        

the third degree on a first offense and a misdemeanor of the       1,010        

second degree on each subsequent offense.                          1,011        

      (B)  Whoever violates section 4727.02 of the Revised Code    1,013        

is guilty of a felony of the fifth degree.                         1,014        

      Section 2.  That existing sections 4727.01, 4727.02,         1,016        

4727.03, 4727.04, 4727.05, 4727.06, 4727.08, 4727.09, 4727.10,     1,017        

4727.11, 4727.12, 4727.13, 4727.14, 4727.15, 4727.16, and 4727.99  1,018        

of the Revised Code are hereby repealed.                                        

      Section 3.  Section 4727.01 of the Revised Code is           1,020        

presented in this act as a composite of the section as amended by  1,021        

both Am. Sub. H.B. 353 and Am. Sub. S.B. 293 of the 121st General  1,023        

Assembly, with the new language of neither of the acts shown in    1,024        

capital letters.  Section 4727.06 of the Revised Code is           1,025        

presented in this act as a composite of the section as amended by  1,026        

both Sub. H.B. 376 and Sub. S.B. 259 of the 120th General          1,027        

Assembly, with the new language of neither of the acts shown in    1,029        

capital letters.  Section 4727.08 of the Revised Code is           1,030        

presented in this act as a composite of the section as amended by  1,031        

both Am. Sub. H.B. 353 and Am. Sub. S.B. 293 of the 121st General  1,032        

Assembly, with the new language of neither of the acts shown in    1,034        

capital letters.  This is in recognition of the principle stated   1,035        

in division (B) of section 1.52 of the Revised Code that such      1,036        

amendments are to be harmonized where not substantively            1,037        

irreconcilable and constitutes a legislative finding that such is  1,038        

the resulting version in effect prior to the effective date of     1,039        

this act.