72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 248
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for Department of Consumer and Business Services)
CHAPTER ................
AN ACT
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
Enrolled Senate Bill 248 (SB 248-INTRO) Page 1
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. + }
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Enrolled Senate Bill 248 (SB 248-INTRO) Page 2
Passed by Senate March 13, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 12, 2003
...........................................................
Speaker of House
Enrolled Senate Bill 248 (SB 248-INTRO) Page 3
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 248 (SB 248-INTRO) Page 4