Chapter 176 Oregon Laws 2003

AN ACT

SB 248

Relating to pawnbrokers; creating new provisions; and amending ORS 726.070 and 726.250.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 726.070 is amended to read:

726.070. (1) A bond in the sum of $25,000 executed by the applicant as obligor, together with a surety company authorized to do business in this state as surety or an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 in the amount of $25,000 shall accompany the application and be maintained by the pawnbroker licensee with the Director of the Department of Consumer and Business Services. This bond or letter of credit shall be executed to the State of Oregon and for the use of the state and of any person who may have a cause of action against the obligor of the bond or the letter of credit issuer under this chapter. The bond or letter of credit shall be conditioned that the obligor will faithfully conform to and abide by the provisions of this chapter and of all rules and regulations lawfully made by the director under this chapter, and will pay to the state and to any such person any and all moneys that may become due or owing to the state or to such person from the obligor under and by virtue of the provisions of this chapter. [Before the bond or letter of credit is finally accepted by the director it shall be approved by the Attorney General.] The Attorney General shall approve the form of any bond or letter of credit that may be accepted by the director under this section.

(2) If any person is aggrieved by the misconduct of a pawnbroker or by the pawnbroker’s violation of any law and recovers judgment therefor, such person may, after the return unsatisfied either in whole or in part of any execution issued upon such judgment, maintain an action for the person’s own use upon the bond or letter of credit of the pawnbroker in any court having jurisdiction of the amount claimed. The director shall furnish to anyone applying therefor, a certified copy of any such bond or letter of credit filed with the director upon the payment of a fee of $5 and the certified copy shall be prima facie evidence in any court that the bond or letter of credit was duly executed and delivered by each pawnbroker whose name appears thereon.

SECTION 2. ORS 726.250 is amended to read:

726.250. (1) For the purpose of discovering violations of this chapter or securing information required by the Director of the Department of Consumer and Business Services under this chapter, the director at any time, either personally or by an examiner or other employee of the Department of Consumer and Business Services, may investigate the pledge loans and business and examine the books, accounts, records and files used therein of every pawnbroker and of every person who the director has reason to believe is doing the business described in ORS 726.010, whether that person acts or claims to act as principal or agent, or under or without the authority of this chapter. For such purpose the director, examiner or other employee of the department shall have free access to the place of business, books, accounts, papers, records, files, safes and vaults of all such persons. The actual cost of each examination shall be paid to the director by every licensee so examined. The director may maintain an action for recovery of such costs in any court of competent jurisdiction. The director, examiner or other employee of the department may examine under oath all persons whose testimony may be required relative to such pledge loans or business.

(2) At least once [a year] every two calendar years or as often as the director determines necessary, the director, examiner or other employee of the department shall make an examination of the pledge loans and business, office records and files of each licensed pawnbroker. The examination shall occur at the licensed location of the pawnbroker.

(3) At least once during any calendar year in which an examination is not conducted under subsection (2) of this section, each licensed pawnbroker shall submit to the director for examination, at the office of the director, those books, records and documents prescribed by the director by rule.

SECTION 3. (1) The amendments to ORS 726.070 by section 1 of this 2003 Act apply to bonds or letters of credit issued on or after the effective date of this 2003 Act.

(2) The amendments to ORS 726.250 by section 2 of this 2003 Act apply to examinations occurring on or after the effective date of this 2003 Act.

Approved by the Governor May 30, 2003

Filed in the office of Secretary of State June 2, 2003

Effective date January 1, 2004

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