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|
As Passed by the House
123rd General Assembly
Regular Session
1999-2000 | Sub. H. B. No. 467 |
REPRESENTATIVES SCHULER-ALLEN-VESPER-BRITTON-EVANS-
DePIERO-MOTTLEY-PERRY-BARRETT-GRENDELL
A BILL
To amend sections 4727.01 to 4727.06, 4727.08 to 4727.16, and 4727.99; to
amend, for the purpose of adopting a new section number as indicated in
parentheses, section 4727.16 (4727.21); and to enact new section 4727.16 and
sections 4727.17 to 4727.20 of the Revised Code to revise the Pawnbroker
Licensing Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4727.01, 4727.02, 4727.03, 4727.04, 4727.05, 4727.06,
4727.08, 4727.09, 4727.10, 4727.11, 4727.12, 4727.13, 4727.14, 4727.15,
4727.16, and 4727.99 be amended, section 4727.16 (4727.21) be amended for
the purpose of adopting a new section number as indicated in parentheses, and
new section 4727.16 and sections 4727.17, 4727.18, 4727.19, and
4727.20 of the Revised Code be enacted to read as follows:
Sec. 4727.01. As used in sections 4727.01 to 4727.16 of the Revised
Code THIS CHAPTER:
(A) "Pawnbroker" means a person engaged in the
business of lending money on deposit or pledges of personal property, other
than securities, printed evidence of
indebtedness, titles, deeds, or bills of sale, at a total charge, rate of
interest, or discount or other
remuneration in excess of eight per cent per annum, and includes a
person
engaged in the business of purchasing personal property from
another person with an
agreement that the person the personal property will be made
available to that other person for
repurchase within an agreed-to time period two persons
and for an amount
greater than the price the person originally paid to that OTHER
person for the purchase
of the personal property.
(B) "Superintendent of financial institutions" includes
the deputy superintendent for consumer finance as provided in section 1181.21
of the Revised Code.
Sec. 4727.02. No person shall act as a pawnbroker, or advertise, transact, or
solicit business as a pawnbroker, without first having obtained a license from
the division SUPERINTENDENT of financial institutions in the
department of commerce.
Sec. 4727.03. (A) As used in this section, "experience
and fitness in the capacity involved" means that the applicant
for a pawnbroker's license demonstrates sufficient financial
responsibility, reputation, and experience in the pawnbroker
business, or in a related business, to act as a pawnbroker in
compliance with sections 4727.01 to 4727.16 of the Revised Code THIS
CHAPTER.
"Experience and fitness in the capacity involved" shall be
determined by:
(1) Prior or current ownership or management of, or
employment in, a pawnshop;
(2) Demonstration to the satisfaction of the
superintendent of financial institutions of a
thorough working knowledge of all pawnbroker laws and rules as they relate to
the actual operation of a pawnshop;.
A DEMONSTRATION SHALL INCLUDE A DEMONSTRATION OF AN ABILITY TO PROPERLY
COMPLETE FORMS, KNOWLEDGE OF HOW TO PROPERLY CALCULATE INTEREST AND STORAGE
CHARGES, AND KNOWLEDGE OF LEGAL NOTICE AND FORFEITURE PROCEDURES. THE FINAL
DETERMINATION OF WHETHER AN APPLICANT'S DEMONSTRATION IS ADEQUATE RESTS WITH
THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS.
(3) A submission by the applicant and any stockholders,
OWNERS, MANAGERS, directors, or officers of the pawnshop, and
employees of the
applicant to a police record check; and
(4) Liquid assets in a minimum amount of twenty-five ONE
HUNDRED
thousand dollars at the time of applying for initial licensure
and demonstration of the ability to maintain the liquid assets at
a minimum amount of ten FIFTY thousand dollars for the duration
of
holding a valid pawnbroker's license.
(B) The division of financial institutions SUPERINTENDENT may
grant a license to act as a pawnbroker to any person of good character and
having
experience and fitness in the capacity involved to engage in the
business of pawnbroking upon the payment to the division
SUPERINTENDENT of a license fee determined by the superintendent
pursuant to section 1321.20 of the Revised Code. A LICENSE IS NOT
TRANSFERABLE OR ASSIGNABLE.
(C) THE SUPERINTENDENT MAY CONSIDER
AN APPLICATION WITHDRAWN AND MAY RETAIN THE INVESTIGATION FEE IF BOTH OF
THE FOLLOWING ARE TRUE:
(1) AN APPLICATION FOR A LICENSE DOES NOT CONTAIN ALL OF THE
INFORMATION REQUIRED UNDER DIVISION (B) OF THIS SECTION.
(2) THE INFORMATION IS NOT SUBMITTED TO THE SUPERINTENDENT WITHIN
NINETY DAYS AFTER THE SUPERINTENDENT REQUESTS THE INFORMATION FROM THE
APPLICANT IN WRITING.
(D) The division SUPERINTENDENT shall require an
applicant for a pawnbroker's
license to pay to it THE SUPERINTENDENT a nonrefundable initial
investigation fee of
two hundred dollars, which is for the exclusive use of the state.
The license shall be issued by the division SUPERINTENDENT and
shall expire on
the thirtieth day of June next following the date of its
issuance. Fifty per cent of the annual license fee shall be for
the use of the state, and fifty per cent shall be paid by the
state to the municipal corporation, or if outside the limits of
any municipal corporation, to the county, in which the office of
the licensee is located. All such fees payable to municipal
corporations or counties shall be paid annually.
(E) Every such PAWNBROKER'S license shall be renewed
annually by the
thirtieth day of June according to the standard renewal procedure
of Chapter 4745. of the Revised Code. The fee for renewal of a
license shall be equivalent to the fee for an initial license
established by the superintendent pursuant to
section 1321.20 of the Revised Code. Any licensee who wishes to
renew the licensee's PAWNBROKER'S license but who fails to do so
on or
before the
thirtieth day of June shall reapply for licensure in the same
manner and pursuant to the same requirements as for initial
licensure, unless the licensee pays to the division
SUPERINTENDENT on or
before the
thirty-first day of August of the year the license expires,
a late renewal penalty of one hundred dollars in addition to the
regular renewal fee. Any person LICENSEE who fails to renew the
person's license on or before the thirtieth day of June is prohibited
from
acting as a pawnbroker until the person's license is renewed
or a new license is
issued under this section. Any person LICENSEE who renews a
license
between the first day of July and the thirty-first day of August
is not relieved from complying with this division. The division
SUPERINTENDENT
may refuse to issue to or renew the license
of any person LICENSEE who violates this division.
(F) No license shall be granted to any person not a resident of
or the principal office of which is not located in the municipal
corporation or county designated in such license unless such
THAT
applicant, in writing and in due form approved by and filed with
the division SUPERINTENDENT, first appoints an agent, a resident
of the state,
and city or county where the office is to be located, upon whom
all judicial and other process, or legal notice, directed to
the applicant may be served. In case of the death, removal from the
state, or any legal disability or any disqualification of any
such agent, service of such process or notice may be made upon
the superintendent.
The division SUPERINTENDENT may, upon notice to the licensee and
reasonable opportunity to be heard, suspend or revoke any license
or assess a penalty against the licensee if the licensee, or the
licensee's officers, agents, or employees, has violated
sections 4727.01 to 4727.16 of the Revised Code THIS CHAPTER.
Any penalty shall be
appropriate to the violation but in no case shall the penalty be
less than two hundred nor more than two thousand dollars.
Whenever, for any cause, a license is suspended or revoked, the
division SUPERINTENDENT shall not issue another license to the
licensee nor to
the legal spouse of the licensee, nor to any copartnership or
corporation BUSINESS ENTITY of which the licensee is an officer
OR MEMBER OR PARTNER, nor to any
person employed by the licensee, until the expiration of at least one
year TWO YEARS
from
the date of revocation or suspension of the license. The
division SUPERINTENDENT shall deposit all penalties allocated
pursuant to this
section into the state treasury to the credit of the consumer
finance fund.
Any proceedings for the revocation or suspension of a
license or to assess a penalty against a licensee are subject to
Chapter 119. of the Revised Code.
(C)(G) If a licensee surrenders or chooses not to renew the
licensee's PAWNBROKER'S license, the licensee shall notify the
superintendent thirty days prior to the date on which the
licensee intends to close the licensee's business as a
pawnbroker. Prior to the date, the licensee shall do either of the following
with respect to all active loans:
(1) Dispose of an active loan by selling the loan to
another person holding a valid pawnbroker's license issued under
this section;
(2) Reduce the rate of interest on pledged articles held
as security for a loan to eight per cent per annum or less
effective on the date that the pawnbroker's license is no longer
valid.
(D) The director of commerce may compel, by subpoena,
witnesses to appear and testify in relation to investigations
under this chapter and may require, by subpoena duces tecum, the
production of any book, paper, or document pertaining to an
investigation under this chapter. If a person fails to comply
with a subpoena or subpoena duces tecum issued under this
division, the director may apply to the court of common pleas in
the county where the investigation is being conducted for an
order compelling the person to comply with the subpoena or
subpoena duces tecum or, for failure to do so, to be held in
contempt of court.
(E) A pawnbroker licensed under this section shall
maintain liquid assets of at least ten thousand dollars for the
duration that the licensee holds a valid pawnbroker's license
issued pursuant to this section.
Sec. 4727.04. (A) Application AN APPLICATION for a
pawnbroker's license
shall state fully the name and address of the person, or
corporation, APPLICANT and of every member of the firm,
partnership, or
association, authorized to do business thereunder, PARTNER,
STOCKHOLDER, OR OWNER OF AN APPLICANT, and the
location of the office or place of business in which the business
is conducted; and in the case of a corporation, shall also state
the date and place of its incorporation, the name and address of
its manager, the names and addresses of its directors, the name
and address of the agent as provided in section 4727.03 of the
Revised Code, and any other information required by the division
SUPERINTENDENT
of financial institutions in the department of
commerce.
The license shall be kept posted in a conspicuous place in
the office where the business is transacted. No person so
licensed shall transact or solicit business under any other name
or at any location other than at the address stated in the
person's license. No licensee may move the licensee's
business location without
prior notification to the superintendent of financial institutions of
at least thirty days. If the licensee moves out of the municipal corporation
or county
in which the licensee was originally licensed,
the licensee shall pay an additional
annual license fee to be distributed in accordance with section
4727.03 of the Revised Code.
(B) A person licensed as a pawnbroker shall post a
conspicuous notice in its place of business, visible to all
patrons, in a form and at places designated by rule of the
division, that the licensee has no right to
retain goods stolen from the true owner, and that the owner may
recover the goods or their value from the pawnbroker in an action
at law, or, in the event the police take custody of the goods, by
police release pursuant to section 2933.41 of the Revised Code.
(C) The superintendent
may issue to a pawnbroker licensed under this chapter a temporary
exhibition permit pursuant to division (C)(1) of section 4728.04
of the Revised Code.
(1) A LICENSEE WHO WISHES TO BE ISSUED A TEMPORARY PERMIT
PURSUANT TO DIVISION (C)(1) OF SECTION 4728.04 of the Revised Code SHALL MAKE
REQUEST FOR SUCH ISSUANCE BY LETTER ADDRESSED TO THE SUPERINTENDENT. THE
LETTER OF REQUEST SHALL CONTAIN THE LICENSEE'S NAME, PERMANENT BUSINESS
ADDRESS, AND LICENSE NUMBER.
(2) UPON RECEIPT OF A TEMPORARY EXHIBITION PERMIT, THE PERMIT HOLDER SHALL
CONSPICUOUSLY DISPLAY THE PERMIT AT THE PLACE WHERE THE PERMIT HOLDER
TRANSACTS
BUSINESS AT ANY AUCTION, CONVENTION, EXHIBITION, FAIR, OR SHOW.
(3) EVERY PERMIT HOLDER WHO WISHES TO PARTICIPATE IN AN AUCTION,
CONVENTION, EXHIBITION, FAIR, OR SHOW, AT LEAST TWO WEEKS PRIOR TO ITS
OPENING, SHALL NOTIFY THE SUPERINTENDENT OR THE CHIEF OF POLICE OF THE
MUNICIPAL CORPORATION IN WHICH THE EVENT IS TO TAKE PLACE, OR IF THE EVENT IS
TO TAKE
PLACE OUTSIDE OF ANY MUNICIPAL CORPORATION, THEN THE SHERIFF OF THE COUNTY IN
WHICH THE
EVENT IS TO TAKE PLACE. SUCH NOTIFICATION SHALL BE BY LETTER AND SHALL
INCLUDE THE PERMIT HOLDER'S NAME, PERMANENT BUSINESS ADDRESS, AND PERMIT
NUMBER, AND THE PLACE WHERE THE EVENT IS SCHEDULED TO BE HELD.
(C) EVERY LICENSEE SHALL POST AT THE MAIN DOOR OF THE LICENSEE'S
PLACE OF BUSINESS THE HOURS OR TIMES WHEN THE ESTABLISHMENT IS OPEN FOR
BUSINESS. NO LICENSEE SHALL COLLECT INTEREST AND STORAGE ON ANY LOAN FOR ANY
REGULAR BUSINESS DAY THAT THE ESTABLISHMENT IS NOT OPEN FOR BUSINESS AS
POSTED, UNLESS PRIOR NOTICE OF A CLOSING IS POSTED ON THE DOOR OR THE CLOSING
IS OCCASIONED BY AN ACT OF GOD, UNFORESEEN EMERGENCY, OR OTHER EVENT
BEYOND THE CONTROL OF THE LICENSEE. A LICENSEE SHALL NOTIFY THE
SUPERINTENDENT OF ANY CHANGE IN THE POSTED HOURS OF OPERATION.
(D) NO LICENSEE SHALL FAIL TO OBSERVE THE POSTED HOURS OF
OPERATION PURSUANT TO DIVISION (C) OF THIS SECTION EXCEPT AS
AUTHORIZED BY THAT DIVISION.
Sec. 4727.05. The superintendent of financial institutions shall, either
personally,
or by such person as the superintendent may appoint for the
purpose, at least once a year EVERY EIGHTEEN MONTHS, and more
often if deemed advisable, investigate the business of every
person licensed as a pawnbroker, and of every person,
copartnership, and corporation by whom or for which any such loan
or purchase shall be made, whether such person, copartnership, or
corporation shall act, or claim to act, as principal, agent, or
broker, or under or without the authority of sections 4727.01 to
4727.16 of the Revised Code THIS CHAPTER, and for that purpose
shall have free
access to all the pledged or purchased articles, books, and all
papers relating to the licensee's business. The superintendent
and every examiner may examine, under oath or affirmation, any
person whose testimony may relate to any business coming within
sections 4727.01 to 4727.16 of the Revised Code THIS CHAPTER.
Sec. 4727.06. (A) No pawnbroker shall charge, receive, or
demand interest for any loan in excess of five per cent per month
or fraction of a month on the unpaid principal. INTEREST SHALL BE COMPUTED
ON A MONTHLY BASIS ON THE AMOUNT OF THE PRINCIPAL REMAINING UNPAID ON
THE FIRST DAY OF THE MONTH AND SHALL NOT BE COMPOUNDED.
(B) In addition to
such THE rate of interest, the LIMITATION IMPOSED
PURSUANT TO DIVISION (A) OF THIS SECTION, THE licensee may
make a total charge for
the storage of pledged articles held as security for a loan, a
sum not exceeding two NO MORE THAN:
(1) THREE dollars per month or fraction of a month
for all 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
where the licensee is to deliver or forward the pledged article
by express or parcel post, the licensee may make an additional
charge of three
(2) FOUR dollars plus the actual cost of shipping.
The, WHEN THE licensee may make an additional charge of
one dollar IS TO DELIVER OR FORWARD THE PLEDGED ARTICLE BY EXPRESS OR
PARCEL
POST TO THE
PLEDGOR;
(3) TWO DOLLARS for the loss
of the original statement issued to the pledgor by the licensee
pursuant to section 4727.07 of the Revised Code upon redemption
of the pledged articles. The licensee also may make a charge of
one dollar;
(4) TWO DOLLARS for the cost of notifying a pledgor by
mail
that the pledged articles may be forfeited to the licensee pursuant to
section 4727.11 of the Revised Code. The interest and charges
shall not be deducted or paid in advance of the dates that the
interest and charges are due, except upon redemption of the
pledged articles.
(B) Subject to the maximum amount upon which interest may
be computed pursuant to division (A) of this section, monthly
interest charges shall be computed monthly on the amount of the
principal remaining unpaid on the first day of that month and
shall not be compounded.
(C) A licensee who complies with the requirements or
procedures of this state pursuant to the application of the
"Brady Handgun Violence Protection Act," Pub. L. No. 103-159, 107
Stat. 1536 (1993), 18 U.S.C.A. 922 (AS AMENDED),
may charge any fee the licensee is required by
law to pay in order to comply with such requirements or
procedures. The licensee also may charge a fee of NO MORE
THAN two dollars for providing services in compliance with such
requirements or procedures.
(D) A PLEDGOR MAY PAY A PORTION OF THE OUTSTANDING PRINCIPAL LOAN
BALANCE AT ANY TIME. A PLEDGOR MAY REDEEM A PAWN LOAN AT ANY TIME AFTER
SEVENTY-TWO HOURS HAVE PASSED SINCE THE PLEDGE WAS MADE. A PLEDGOR MAY NOT
PREPAY
INTEREST OR STORAGE CHARGES, EXCEPT WHEN THE PLEDGOR REDEEMS THE PLEDGED
PROPERTY.
Sec. 4727.08. (A) Every person licensed as a pawnbroker shall
keep and use separate pawn forms and purchase forms to be
approved by the superintendent of the division of
financial institutions in the department of commerce. The forms
(B) THE LICENSEE shall disclose, at
the time RECORD ON THE APPROPRIATE FORM FOR each purchase
PAWN or loan is made, an accurate description
of the goods, articles, or things deposited, the PURCHASE ALL OF THE
FOLLOWING INFORMATION:
(1) THE DATE AND time of THE pledging or selling
them, the PURCHASING;
(2) THE amount of money loaned on them
or paid for
them, the LOAN OR THE PURCHASE PRICE;
(3) THE rate of
interest and THE
charges to be paid on such THE loan,
the;
(4) THE time within which such pawn THE PLEDGOR is to
be redeemed, with REDEEM
the PLEDGED PROPERTY;
(5) THE name,
age, place of residence, AND ADDRESS OF THE PLEDGOR OR SELLER;
(6) A driver's or commercial driver's license
number, social security MILITARY IDENTIFICATION number,
or
other personal identification,
and a short NUMBER;
(7) A physical description of the person
of the pledgor or
seller. When any item is pledged or sold, the licensee
also shall write on such form;
(8) AN ACCURATE
DESCRIPTION OF THE PLEDGED OR PURCHASED PROPERTY, INCLUDING the name of
the maker MANUFACTURER, the ANY serial and
model numbers, or
other ANY identifying features;, and where jewelry
or gold or silver
articles of any kind are pledged or sold, the licensee shall
write on the form all identifying letters or marks inscribed
thereon;
(9) ANY OTHER DISCLOSURES REQUIRED BY FEDERAL
LAW. One
(C) A copy of the forms EACH FORM USED IN A PAWN OR
PURCHASE shall be kept at all times in
numerical order in an active or inactive file, as appropriate, or
bound books available AND THE LICENSEE SHALL ACCOUNT for
inspection by the division; all FORM numbers
shall be accountable. Such
(D) THE records and forms, at all times,
shall be kept at the licensed location and open to the AVAILABLE
FOR inspection of BY the superintendent or the chief of
police
of the municipal corporation, a police officer deputed or
authorized by the chief of police, or the mayor of
the OR TOWNSHIP IN WHICH THE LICENSEE'S PLACE OF BUSINESS IS LOCATED,
OR IF THE
PLACE OF BUSINESS IS NOT LOCATED WITHIN A municipal corporation OR
TOWNSHIP,
THEN THE SHERIFF OF THE COUNTY IN WHICH THE PLACE OF BUSINESS IS
LOCATED. Upon demand of any of
them, such person so licensed
THE LICENSEE shall produce and show ANY records, forms,
and pledges, or purchases which are in the person's
LICENSEE'S possession.
(E) Except in the case of a pledged motor vehicle, watercraft, or
outboard motor, the licensee
shall keep all pledges and purchases at the licensee's place
of business unless a pledgor, IN
WRITING, agrees otherwise at the time
the pledge is made. If the item pledged for the pawn loan is a motor
vehicle, watercraft, or outboard motor, the pawnbroker LICENSEE
shall take possession
of both the motor vehicle, watercraft, or outboard motor and the certificate
of title to the motor vehicle, watercraft, or outboard motor, and shall
keep
the certificate at the
pawnbroker's LICENSEE'S place of business but, upon notification
to the pledgor, may keep
the motor vehicle, watercraft, or outboard motor at a location other than the
pawnbroker's LICENSEE'S place of business. No pledge shall
be removed from the place of
business for the licensee's personal use or gain.
(F) EVERY PERSON LICENSED AS A PAWNBROKER UNDER THIS CHAPTER
SHALL KEEP AND USE AN
INTELLIGIBLE SET OF BOOKS AND RECORDS IN THE ENGLISH LANGUAGE IN
COMPLYING WITH THIS CHAPTER WITH RESPECT TO RECORDING THE DETAILS OF EACH
PURCHASE OR LOAN. EXCEPT AS PROVIDED IN DIVISION (J) OF THIS
SECTION,
ALL INFORMATION REQUIRED TO BE RECORDED BY THIS CHAPTER
SHALL BE ENTERED IN A BOUND BOOK OR ON LOOSE-LEAF, PERMANENT FORMS USED
EXCLUSIVELY FOR THAT PURPOSE. FORMS SHALL BE IDENTICAL AND CONSECUTIVELY
NUMBERED, AND EACH SHALL CONTAIN TWO OR MORE PAGES. ONE PART OF EACH FORM
SHALL BE DETACHABLE AND, WHEN COMPLETED, SHALL SERVE AS THE STATEMENT TO BE
GIVEN BY THE LICENSEE TO THE PLEDGOR OR SELLER AS PROVIDED BY SECTION 4727.07
of the Revised Code. THE REMAINING PART OF THE FORM SHALL BE RETAINED IN THE LICENSEE'S
PERMANENT RECORDS. ALL FORMS SHALL BE ACCOUNTED FOR.
(G) NO LICENSEE SHALL REQUIRE
A BORROWER TO AFFIX THE BORROWER'S SIGNATURE TO A BLANK OR PARTIALLY FILLED
OUT PAWN FORM OR OTHER RECORD.
(H) EVERY LICENSEE SHALL PRESERVE THE LICENSEE'S BOOKS, FORMS,
ACCOUNTS, AND RECORDS FOR AT LEAST TWO YEARS AFTER MAKING THE FINAL ENTRY
REGARDING ANY PURCHASE OR PLEDGE OF PROPERTY RECORDED THEREIN.
(I) ALL PAWN AND PURCHASE FORMS, LEGAL NOTICES, AND PAYMENT
RECEIPT FORMS SHALL REFLECT THE NAME UNDER WHICH THE LICENSEE IS REGISTERED
WITH THE SUPERINTENDENT AND THE COMPLETE ADDRESS OF THE PLACE OF BUSINESS.
(J) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER, A
LICENSEE MAY USE OTHER METHODS OF RECORDING DATA, KEEPING
RECORDS, AND KEEPING BOOKS, SUCH AS ELECTRONIC OR COMPUTERIZED METHODS, IN
LIEU
OF THE METHODS DESCRIBED IN THIS SECTION, PROVIDED WRITTEN PRINTOUTS OR HARD
COPIES OF THE REQUIRED DATA ARE READILY AVAILABLE IN A FORM APPROVED, IN
ADVANCE, BY THE SUPERINTENDENT.
Sec. 4727.09. Each (A) A PERSON LICENSED AS A
pawnbroker shall, every
business day, make available FURNISH THE FOLLOWING
INFORMATION to the chief of police or the head of the police
department, on forms to be furnished by the police department, a
OF THE MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH THE LICENSEE'S PLACE OF
BUSINESS IS
LOCATED, OR IF THE PLACE OF BUSINESS IS NOT LOCATED WITHIN A MUNICIPAL
CORPORATION OR TOWNSHIP, THEN THE SHERIFF OF THE COUNTY IN WHICH THE PLACE OF
BUSINESS IS
LOCATED:
(1) A description of all articles received PROPERTY PLEDGED
WITH OR PURCHASED
by him by pledge or sale on the business day immediately preceding,
together with the number of the ticket issued THE LICENSEE;
(2) THE NUMBER OF THE PAWN OR PURCHASE FORM THE LICENSEE
USED TO DOCUMENT THE PLEDGE OR PURCHASE.
(B) A LICENSEE SHALL PROVIDE THE PROPERTY DESCRIPTION AND FORM
NUMBER REQUIRED BY DIVISION (A) OF THIS SECTION ON THE FORM
FURNISHED BY THE LAW ENFORCEMENT OFFICER REQUESTING THE INFORMATION. THE
COMPLETED FORM MAY BE COMMUNICATED BY ELECTRONIC TRANSFER OR BE IN A
MAGNETIC MEDIA FORMAT.
(C) FOR THE PURPOSES OF THIS SECTION, A LICENSEE NEED PROVIDE
ONLY THE INFORMATION REQUIRED BY DIVISION (A) OF THIS SECTION.
Sec. 4727.10. No PERSON LICENSED AS A pawnbroker shall receive any
pledge or
purchase any articles from any minor, or from any person who is
at the time intoxicated or under the influence of a controlled
substance, or from any person who is known or believed by the
licensee to be a thief, or a receiver of stolen property, OR
FROM ANY PERSON IDENTIFIED IN WRITING TO THE LICENSEE BY THE CHIEF OF
POLICE OF A MUNICIPAL CORPORATION OR TOWNSHIP, SHERIFF, OR THE STATE HIGHWAY
PATROL
AS A KNOWN OR SUSPECTED THIEF OR
RECEIVER OF STOLEN PROPERTY.
Sec. 4727.11. (A) If any person receiving a loan from a
pawnbroker on a pledge of personal property A PLEDGOR fails to
redeem or
pay interest on any articles pledged within TO A PERSON LICENSED AS
A PAWNBROKER ON A PAWN LOAN FOR two months from the
date of the loan or the date on which the last interest payment
is due, the licensee shall notify the pledgor by mail, with proof
of mailing, to the last place of address given by the pledgor,
that unless the pledge or PLEDGOR REDEEMS THE PLEDGED property
is redeemed OR PAYS ALL INTEREST DUE AND STORAGE CHARGES within
one month THIRTY DAYS
from the date the notice is mailed, it THE PLEDGED PROPERTY
shall be forfeited to the
licensee. If the pledgor fails to redeem the property OR PAY ALL
INTEREST DUE AND STORAGE CHARGES within the
period specified in the notice, the licensee shall
proceed to take ownership BECOMES THE OWNER
of the pledge or PLEDGED property.
(B) In the event that any article or property is redeemed
by a person other than the pledgor, the pledgor shall sign his THE
PLEDGOR'S
copy of the statement required under section 4727.07 of the
Revised Code, which copy shall be presented by the person to the
licensee. The licensee shall verify the name of the person
redeeming the article or property, and shall record the person's
name, AND driver's or commercial driver's license number,
or
social
security number OTHER PERSONAL IDENTIFICATION NUMBER, on the
licensee's copy of the statement, and
shall require the person to sign this copy.
(C) In the event that any articles or property pledged are
lost or rendered inoperable due to negligence of the licensee,
the licensee shall replace the articles or property with
identical articles or property, except that if the licensee
cannot reasonably obtain identical articles or property, the
licensee shall replace the articles or property with like
articles or property.
(D) WHEN AN ACCOUNT IS PAID IN FULL, THE LICENSEE SHALL RETURN
THE PLEDGED ARTICLE IMMEDIATELY TO THE PLEDGOR. IN THE EVENT THE PLEDGOR
SELLS, TRANSFERS, OR ASSIGNS THE PLEDGE, THE LICENSEE
SHALL VERIFY THE NAME OF THE PERSON REDEEMING THE PLEDGE AND RECORD
THAT PERSON'S NAME, DRIVER'S LICENSE NUMBER, AND
SIGNATURE ON THE PERMANENT COPY OF THE STATEMENT OF PLEDGE REQUIRED
PURSUANT TO SECTION 4727.07 of the Revised Code. THE LICENSEE ALSO
SHALL OBTAIN THE SIGNATURE OF THE PLEDGOR, OR OTHER PERSON REDEEMING THE
PLEDGE, UPON A SEPARATE RECORD
OF THE TRANSACTION, THAT ACKNOWLEDGES THE TOTAL DOLLAR AMOUNT PAID FOR
REDEMPTION AND THE DATE OF REDEMPTION. ALL RECORDS SHALL BE KEPT IN THE
LICENSEE'S PLACE OF BUSINESS.
Sec. 4727.12. (A) A PERSON LICENSED AS A pawnbroker shall retain any
and all
goods or articles pledged with him THE LICENSEE until the
expiration of
seventy-two hours after the pledge was IS made, and shall retain
any
goods or articles purchased by him THE LICENSEE until the
expiration of
fifteen days after the purchase was IS made. The licensee may
dispose of such goods or articles sooner with the written
permission of the local CHIEF OF THE police department OF THE
MUNICIPAL CORPORATION OR TOWNSHIP IN WHICH THE LICENSEE'S PLACE OF BUSINESS IS
LOCATED,
OR IF THE PLACE OF BUSINESS IS NOT LOCATED WITHIN A MUNICIPAL CORPORATION OR
TOWNSHIP,
THEN THE SHERIFF OF THE COUNTY IN WHICH THE BUSINESS IS LOCATED.
(B) If the chief OF POLICE or head of the police department
SHERIFF to whom
the licensee made MAKES available the information required by
section
4727.09 of the Revised Code has probable cause to believe that
the article described therein is stolen property, he THE CHIEF OR
SHERIFF shall notify
the licensee in writing. Upon receipt of such a notice, the
licensee shall retain the article until the expiration of thirty
days after the day on which he THE LICENSEE is first required to
make available the information required by section 4727.09 of the
Revised Code, unless the chief or the head of the police
department SHERIFF notifies the licensee in writing that he
THE LICENSEE is not
required to retain the article until such expiration.
(C) If the chief or the head of the local police
department SHERIFF receives a report that property has been stolen
and determines the identity of the true owner of the allegedly stolen
property that has been purchased or pawned and are IS held by a
licensee, and informs the licensee of the true owner's identity,
the licensee may restore the allegedly stolen
property to the true owner directly.
If a licensee fails to restore the allegedly stolen
property, the true owner may recover
the property from the licensee in an action at law.
(D) If the licensee returns the allegedly stolen property
to the true owner, the licensee may charge the person who pledged
or sold the allegedly stolen property to him THE LICENSEE, and
any person who
acted in consort with the pledgor or the seller to defraud the
licensee, the amount the licensee paid or loaned for the
allegedly stolen property, plus interest and storage charges
provided for in section 4727.06 of the Revised Code.
Sec. 4727.13. (A) The superintendent of financial
institutions shall adopt rules in accordance with Chapter 119. of the
Revised Code for the administration and enforcement of sections 4727.01 to
4727.16 of the Revised Code THIS CHAPTER.
(B) The superintendent shall enforce sections 4727.01 to
4727.16 of the Revised Code THIS CHAPTER, make all reasonable
effort to
discover alleged violators, notify the proper prosecuting officer
whenever the superintendent has reasonable grounds to believe
that a violation
has occurred, act as complainant in the prosecution thereof, and
aid such officers to the best of the superintendent's
ability in such prosecutions. The superintendent shall employ such deputies
as may be necessary to make the investigations and inspections, and
otherwise perform the duties imposed by such sections.
(C) THE SUPERINTENDENT MAY ISSUE A CEASE AND DESIST ORDER AGAINST
ANY PERSON THE SUPERINTENDENT REASONABLY SUSPECTS HAS VIOLATED, IS CURRENTLY
VIOLATING, OR IS ABOUT TO VIOLATE THIS CHAPTER. THE SUPERINTENDENT MAY APPLY
TO A COURT OF COMMON PLEAS FOR AN ORDER COMPELLING A PERSON TO COMPLY WITH
ANY CEASE AND DESIST ORDER OR ANY SUBPOENA ISSUED BY THE SUPERINTENDENT.
(D) THE SUPERINTENDENT MAY OBTAIN FROM THE COURT OF COMMON PLEAS
ANY FORM OF INJUNCTIVE RELIEF AGAINST ANY PERSON THAT HAS VIOLATED, IS
CURRENTLY VIOLATING, OR IS ABOUT TO VIOLATE THIS CHAPTER.
(E) TO ENFORCE THIS CHAPTER, THE SUPERINTENDENT MAY ISSUE A
SUBPOENA TO ANY PERSON TO COMPEL THE PRODUCTION OF ANY ITEM, RECORD, OR
WRITING, INCLUDING AN ELECTRONIC WRITING, AND MAY ISSUE A SUBPOENA TO ANY
PERSON TO COMPEL THE APPEARANCE AND RENDERING OF TESTIMONY.
(F) THE SUPERINTENDENT MAY EXAMINE AND INVESTIGATE THE BUSINESS,
INCLUDING THE BUSINESS LOCATION AND ANY BOOKS, RECORDS, WRITINGS, INCLUDING
ELECTRONIC WRITINGS, SAFES, FILES, OR STORAGE AREAS LOCATED IN OR UTILIZED BY
THE BUSINESS LOCATION, OF ANY PERSON THE SUPERINTENDENT REASONABLY SUSPECTS
TO BE ADVERTISING, TRANSACTING, OR SOLICITING BUSINESS AS A PAWNBROKER. THE
SUPERINTENDENT MAY REQUEST THE ATTENDANCE AND ASSISTANCE OF THE APPROPRIATE
CHIEF OF POLICE OF A MUNICIPAL CORPORATION OR TOWNSHIP, THE COUNTY
SHERIFF, OR THE STATE HIGHWAY PATROL DURING THE EXAMINATION AND INVESTIGATION
OF THE BUSINESS.
Sec. 4727.14. Sections 4727.01 to 4727.15 of the Revised Code do
THIS CHAPTER DOES not apply to persons who obtain licenses under
sections 1321.01 to 1321.19 or 1321.51 to
1321.60 of the Revised Code, or to national banks, state banks, or
FEDERALLY INSURED DEPOSITORY INSTITUTIONS SUCH AS A STATE OR FEDERALLY
CHARTERED BANK, savings and
loan associations ASSOCIATION, or credit unions
UNION.
Sec. 4727.15. (A) No person, firm, partnership, corporation, or
association LICENSED AS A PAWNBROKER UNDER THIS CHAPTER, and
no agent, officer, or employee thereof, shall violate sections 4727.01 to
4727.15 of the Revised Code THIS CHAPTER. The division of
financial institutions upon criminal conviction shall revoke any
license issued to such person, firm, partnership,
corporation, or association. The division also may assess a penalty against
or revoke or suspend the license of any licensee in accordance with section
4727.03 of the Revised Code upon a criminal conviction of the licensee for any
criminal offense.
(B) UPON THE CRIMINAL CONVICTION OF A LICENSEE OR ANY EMPLOYEE,
MANAGER, OFFICER, DIRECTOR, SHAREHOLDER, MEMBER, OR PARTNER OF A LICENSEE FOR
A
VIOLATION OF THIS CHAPTER, THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS
MAY SUSPEND THE LICENSE OF THE LICENSEE WITHOUT A PRIOR HEARING TO PROTECT THE
PUBLIC
INTEREST AND SUBSEQUENTLY MAY ACT TO REVOKE THE LICENSE OF THE LICENSEE
PURSUANT TO CHAPTER 119. of the Revised Code.
(C) UPON THE CRIMINAL CONVICTION OF A LICENSEE OR ANY EMPLOYEE,
MANAGER, OFFICER, DIRECTOR, SHAREHOLDER, MEMBER, OR PARTNER OF A LICENSEE
UNDER ANY SECTION IN TITLE XXIX of the Revised Code OR UNDER FEDERAL LAW
FOR THEFT, RECEIVING STOLEN PROPERTY, OR MONEY LAUNDERING, THE SUPERINTENDENT
MAY SUSPEND THE LICENSE OF THE LICENSEE WITHOUT A PRIOR HEARING TO PROTECT THE
PUBLIC
INTEREST AND MAY ACT TO REVOKE THE LICENSE OF THE LICENSEE PURSUANT TO
CHAPTER 119. of the Revised Code.
(D) UPON THE CRIMINAL CONVICTION OF A LICENSEE UNDER ANY SECTION
OF TITLE XXIX of the Revised Code OR UNDER FEDERAL LAW FOR A CRIME OTHER
THAN THEFT, RECEIVING STOLEN PROPERTY, OR MONEY LAUNDERING, THE SUPERINTENDENT
MAY ASSESS A PENALTY AGAINST THE LICENSEE OR ACT TO REVOKE OR SUSPEND THE
LICENSE OF THE LICENSEE PURSUANT TO CHAPTER 119. of the Revised Code.
Sec. 4727.16. (A) A PERSON LICENSED AS A PAWNBROKER UNDER THIS
CHAPTER SHALL
STATE THE LICENSE NUMBER ISSUED BY THE SUPERINTENDENT OF FINANCIAL
INSTITUTIONS IN ALL ADVERTISEMENTS, OFFERS, AND SOLICITATIONS.
(B) NO PERSON NOT LICENSED UNDER THIS CHAPTER MAY ADVERTISE AS A
PAWNBROKER.
(C) NO PERSON THAT PRODUCES TELEPHONE BOOKS OR SELLS BILLBOARD
OR BROADCAST ADVERTISING, AND NO PERIODICAL
PUBLISHERS AND OTHER ADVERTISING COMPANIES AND MEDIA
DOING BUSINESS IN OHIO, SHALL ACCEPT OR CONTRACT FOR ANY PAWNBROKER
LISTING, ADVERTISEMENT, OFFER, OR SOLICITATION IN OHIO FROM A PERSON
NOT LICENSED AS A PAWNBROKER UNDER THIS CHAPTER.
Sec. 4727.17. (A) EVERY SALE, TRANSFER, OR HYPOTHECATION OF ANY
STOCK, SECURITY, MEMBERSHIP, PARTNERSHIP, OR OTHER EQUITABLE, BENEFICIAL, OR
OWNERSHIP INTEREST IN A PERSON LICENSED AS A PAWNBROKER, IN AN AMOUNT
REPRESENTING A TEN PER CENT OR GREATER EQUITABLE, MEMBERSHIP, PARTNERSHIP,
BENEFICIAL, OR OTHER OWNERSHIP INTEREST IN THE LICENSEE, MUST BE APPROVED IN
WRITING BY THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS PRIOR TO THE SALE,
TRANSFER, OR HYPOTHECATION OF THE INTEREST IN THE LICENSEE.
(B) EVERY PERSON ACQUIRING OR RECEIVING AN INTEREST AS DESCRIBED
IN DIVISION (A) OF THIS SECTION IS SUBJECT TO THE LICENSING
REQUIREMENTS OF THIS CHAPTER AS IF THE PERSON WERE A
NEW AND SEPARATE LICENSE APPLICANT.
Sec. 4727.18. (A) ANY INFORMATION ARISING FROM, OBTAINED BY, OR
CONTAINED IN AN INVESTIGATION OF A PERSON LICENSED AS A PAWNBROKER UNDER THIS
CHAPTER PERFORMED
BY THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS IS CONFIDENTIAL
INFORMATION AND NOT A
PUBLIC RECORD PURSUANT TO CHAPTER 149. of the Revised Code.
(B) ANY INFORMATION ARISING FROM, OBTAINED BY, OR CONTAINED IN AN
INVESTIGATION BY THE SUPERINTENDENT OF ANY PERSON THE SUPERINTENDENT
REASONABLY SUSPECTS HAS VIOLATED OR IS VIOLATING THIS CHAPTER IS
CONFIDENTIAL INFORMATION AND NOT A PUBLIC RECORD PURSUANT TO
CHAPTER 149. of the Revised Code.
Sec. 4727.19. (A) EFFECTIVE WITH THE TWO-YEAR PERIOD THAT BEGINS
JUNE 30, 2000, AND EVERY TWO-YEAR PERIOD THEREAFTER, EACH PERSON
LICENSED AS A PAWNBROKER UNDER THIS CHAPTER SHALL COMPLETE BY THE END OF THE
PERIOD AT LEAST
TWELVE HOURS OF CONTINUING EDUCATION INSTRUCTION OFFERED IN A COURSE OR
PROGRAM APPROVED BY THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS AFTER
CONSULTATION WITH AN INDUSTRY REPRESENTATIVE SELECTED BY THE SUPERINTENDENT.
(B) ANY PERSON LICENSED UNDER THIS CHAPTER WHO HAS MORE THAN
THREE EMPLOYEES SHALL DESIGNATE AN INDIVIDUAL TO THE SUPERINTENDENT
AS A SALESPERSON. EFFECTIVE WITH THE TWO-YEAR PERIOD THAT
BEGINS JUNE 30, 2000, AND EVERY TWO-YEAR PERIOD THEREAFTER, A
SALESPERSON SHALL COMPLETE BY THE END OF THE PERIOD AT LEAST EIGHT HOURS OF
CONTINUING EDUCATION INSTRUCTION OFFERED IN A COURSE OR PROGRAM APPROVED BY
THE SUPERINTENDENT IN CONSULTATION WITH A DESIGNATED
INDUSTRY REPRESENTATIVE.
(C) EACH LOCATION OF THOSE PERSONS LICENSED UNDER THIS CHAPTER
WHO HAVE
THREE OR MORE EMPLOYEES SHALL
HAVE AT LEAST ONE SALESPERSON WHO MEETS THE
CONTINUING EDUCATION REQUIREMENTS OF THIS SECTION.
(D) THE SUPERINTENDENT, IN ACCORDANCE WITH CHAPTER 119.
of the Revised Code, MAY SUSPEND, REVOKE, OR REFUSE TO RENEW THE
LICENSE OF ANY LICENSEE WHO FAILS TO COMPLY WITH THIS SECTION.
(E) THE SUPERINTENDENT, IN ACCORDANCE WITH CHAPTER 119.
of the Revised Code, MAY ADOPT RULES REGARDING CONTINUING EDUCATION FEES, LOCATION, TIMES,
FREQUENCY, AND WAIVERS OF REQUIREMENTS.
Sec. 4727.20. (A) NO PERSON LICENSED AS A PAWNBROKER UNDER THIS
CHAPTER SHALL CONDUCT BUSINESS IN THIS
STATE, UNLESS THE LICENSEE DOES EITHER OF THE FOLLOWING:
(1) MAINTAINS LIQUID ASSETS IN A MINIMUM AMOUNT OF FIFTY THOUSAND
DOLLARS;
(2) OBTAINS A SURETY BOND ISSUED BY A BONDING
COMPANY OR INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THIS STATE. THE
BOND SHALL BE IN FAVOR OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS AND IN
THE PENAL SUM OF AT LEAST TWENTY-FIVE THOUSAND DOLLARS. THE LICENSEE SHALL
FILE A COPY OF THE BOND
WITH THE SUPERINTENDENT. THE BOND SHALL BE FOR THE EXCLUSIVE
BENEFIT OF ANY PERSON INJURED BY A LICENSEE'S VIOLATION OF THIS CHAPTER. THE
AGGREGATE
LIABILITY OF THE SURETY FOR ANY AND ALL BREACHES OF THE CONDITIONS OF THE BOND
SHALL NOT EXCEED THE PENAL SUM OF THE BOND.
(B) THE LICENSEE SHALL GIVE NOTICE TO THE SUPERINTENDENT BY
CERTIFIED MAIL OF ANY ACTION THAT IS BROUGHT AGAINST THE LICENSEE AND OF ANY
JUDGMENT THAT IS ENTERED AGAINST THE LICENSEE BY A PERSON INJURED BY A
VIOLATION OF THIS CHAPTER. THE NOTICE SHALL PROVIDE DETAILS SUFFICIENT TO
IDENTIFY THE ACTION OR JUDGMENT AND SHALL BE FILED WITH THE SUPERINTENDENT
WITHIN TEN DAYS AFTER THE COMMENCEMENT OF THE ACTION OR NOTICE TO THE LICENSEE
OF ENTRY OF A JUDGMENT. THE SURETY, WITHIN TEN DAYS AFTER IT PAYS ANY CLAIM
OR JUDGMENT, SHALL GIVE NOTICE TO THE SUPERINTENDENT BY CERTIFIED MAIL OF THE
PAYMENT, WITH DETAILS SUFFICIENT TO IDENTIFY THE PERSON AND THE CLAIM OR
JUDGMENT PAID.
(C) WHENEVER THE PENAL SUM OF THE SURETY BOND IS REDUCED BY ONE
OR MORE RECOVERIES OR PAYMENTS, THE LICENSEE SHALL FURNISH A NEW OR ADDITIONAL
BOND UNDER THIS SECTION, SO THAT THE TOTAL OR AGGREGATE PENAL SUM OF THE BOND
OR BONDS EQUALS THE SUM REQUIRED BY THIS SECTION, OR SHALL FURNISH AN
ENDORSEMENT EXECUTED BY THE SURETY REINSTATING THE BOND TO THE REQUIRED PENAL
SUM OF THE BOND.
(D) THE LIABILITY OF THE SURETY ON THE BOND TO THE SUPERINTENDENT
AND TO ANY PERSON INJURED BY A VIOLATION OF THIS CHAPTER IS NOT AFFECTED IN
ANY WAY BY ANY MISREPRESENTATION, BREACH OF WARRANTY, OR FAILURE TO PAY THE
PREMIUM, BY ANY ACT OR OMISSION UPON THE PART OF THE LICENSEE, BY THE
INSOLVENCY OR BANKRUPTCY OF THE LICENSEE, OR BY THE INSOLVENCY OF THE
LICENSEE'S ESTATE. THE LIABILITY FOR ANY ACT OR OMISSION THAT OCCURS DURING
THE TERM OF THE SURETY BOND SHALL BE MAINTAINED AND IN EFFECT FOR AT LEAST TWO
YEARS AFTER THE DATE ON WHICH THE SURETY BOND IS TERMINATED OR CANCELED.
(E) THE LICENSEE SHALL NOT CANCEL THE SURETY BOND EXCEPT UPON
NOTICE TO THE SUPERINTENDENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED. THE
CANCELLATION IS NOT EFFECTIVE PRIOR TO THIRTY DAYS AFTER THE
SUPERINTENDENT RECEIVES THE NOTICE.
(F) NO LICENSEE SHALL FAIL TO COMPLY WITH THIS SECTION.
Sec. 4727.16 4727.21. The state, through the superintendent
of the division of financial institutions in the department of
commerce, in accordance with this chapter, shall be IS the
sole
regulator of persons engaged in business as pawnbrokers.
Sec. 4727.99. (A) Whoever violates sections 4727.03 to 4727.15
4727.21 of the Revised Code is guilty of a misdemeanor of the third
degree on a first offense and a misdemeanor of the second degree
on each subsequent offense.
(B) Whoever violates section 4727.02 of the Revised Code is guilty of a
felony of the fifth degree.
Section 2. That existing sections 4727.01, 4727.02, 4727.03, 4727.04, 4727.05,
4727.06, 4727.08, 4727.09, 4727.10, 4727.11, 4727.12, 4727.13, 4727.14,
4727.15, 4727.16, and 4727.99 of the Revised Code are hereby repealed.
Section 3. Section 4727.01 of the Revised Code is presented in this act
as a composite of the section as amended by both
Am. Sub. H.B. 353 and Am. Sub. S.B. 293 of the 121st
General Assembly, with the new language of
neither of the acts shown in capital letters.
Section 4727.06 of the Revised Code is presented in this act
as a composite of the section as amended by both
Sub. H.B. 376 and Sub. S.B. 259 of the 120th General Assembly, with the new
language of
neither of the acts shown in capital letters.
Section 4727.08 of the Revised Code is presented in this act
as a composite of the section as amended by both
Am. Sub. H.B. 353 and Am. Sub. S.B. 293 of the 121st General Assembly, with
the new language of
neither of the acts shown in capital letters.
This is in recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act.
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