75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
House Bill 2753
Sponsored by COMMITTEE ON CONSUMER PROTECTION (at the request of
Oregon Pawnbrokers Association)
CHAPTER ................
AN ACT
Relating to pawnbrokers; creating new provisions; and amending
ORS 726.300, 726.340, 726.390, 726.395 and 726.400.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 726.300 is amended to read:
726.300. (1) { - The - } { + A + } pawnbroker
{ - shall - } at the time { + the pawnbroker makes + }
{ - of making - } a pledge loan { + shall + } deliver to the
pledgor or { - the - } { + an + } agent of the pledgor a
memorandum or pawn ticket on which { + the pawnbroker + } shall
{ - be legibly written or printed - } { + legibly write or
print + } the following:
(a) The date of the transaction.
(b) The serial number of the pledge loan.
(c) The article or articles pledged.
(d) The amount of the pledge loan.
(e) The rate of interest charged on the loan.
(f) The name and address of the pawnbroker.
(g) An accurate summary of the notice requirements of ORS
726.400 { - (2) - } .
(h) { - Such - } Other terms and conditions { + the
pawnbroker may wish to insert that are + } not inconsistent with
this chapter { - as the pawnbroker may wish to insert - } .
(2) Nothing { - appearing - } { + that appears + } on the
pawn ticket
{ - shall relieve - } { + relieves + } the pawnbroker of the
obligation { - of exercising - } { + to exercise + }
reasonable care in { - the safe keeping of - } { +
safekeeping + } articles pledged with the pawnbroker.
SECTION 2. ORS 726.340 is amended to read:
726.340. If { - the - } { + a + } pawn ticket or memorandum
is lost, destroyed or stolen, the pledgor shall { - so - }
notify the pawnbroker { + of the loss, destruction or theft + }
in writing. The pawnbroker shall treat receipt of { - such - }
{ + the + } notice as a stop against the pledge loan, and
thereafter the provisions of ORS 726.310 and 726.320
{ - shall - } { + do + } not apply to { - such - } { +
the + } pledge loan. Before delivering the pledge or issuing a
new pawn ticket { - in such event - } , the pawnbroker may
require the pledgor to make an affidavit of the alleged loss,
destruction or theft { - of the ticket - } { + and may charge
a fee of not more than $3 for the lost, destroyed or stolen
Enrolled House Bill 2753 (HB 2753-A) Page 1
ticket + }. Not more than five days after receiving notice of the
loss { + , destruction or theft + } of the ticket, the pawnbroker
shall permit the pledgor either to redeem the pledge or to
receive a new ticket upon { - the payment of - } { +
paying + } accrued interest { - , and - } { + . + } The
pawnbroker shall incur no liability for { - so doing - } { +
permitting the pledgor to redeem the pledge or receive a new
ticket + }unless the pawnbroker has previously received written
notice of an adverse claim. This section does not limit or affect
the pawnbroker's legal liability in cases where goods are stolen
or other legal defects { + exist in the pledgor's + }
{ - of - } title { - exist in the pledgor - } { + with
respect to the + } { + pledge + }.
SECTION 3. ORS 726.390 is amended to read:
726.390. (1) A pawnbroker may not charge, contract for or
receive interest at a rate in excess of three percent per month.
However, on pledge loans redeemed within the first month the
pawnbroker may charge a month's interest { - , - } or the
pawnbroker may charge $3 when the interest accumulated amounts to
less. The { + pawnbroker may not compound the + } interest { +
and + } may not { - be compounded and no - } { + deduct or
receive an + } amount { - whatsoever may be deducted or
received - } in advance.
(2) A { + pawnbroker may charge a + } set-up fee of 10 percent
{ - may be charged on all - } { + for + } loans and { - on
all - } loan renewals with a minimum charge of $2 and a maximum
charge of $100.
(3) A { + pawnbroker may charge a + } storage fee of { - up
to two - } { + not more than three + } percent { - may be
charged on all - } { + for + } loans and { - on all - } loan
renewals, with a minimum charge of $2 { + and a maximum charge
of $100 + }.
(4) Except as provided by law, { + a pawnbroker may not
charge, contract for or receive + } { - no further or other
charge or - } { + an + } amount
{ - whatsoever may be charged, contracted for or received - }
in addition to the interest provided for in this section.
SECTION 4. ORS 726.395 is amended to read:
726.395. { - A charge of $3 may be charged a pledgor or
customer who places with the pawnbroker firearms required to be
registered under the laws of the United States. In addition, a
pledgor or customer may be charged any fee imposed by any
governmental entity upon a pawnbroker for holding or transferring
a firearm. - }
{ + (1) A pawnbroker may charge a pledgor or customer $3 if
the pledgor or customer places with the pawnbroker firearms
required to be registered under the laws of the United States.
The pawnbroker may not charge this $3 fee to renew the pledgor's
or customer's placement of the firearm with the pawnbroker.
(2) In addition to the fee described in subsection (1) of this
section, a pawnbroker may charge a pledgor or customer any fee
that a government entity imposes on the pawnbroker for holding or
transferring a firearm. + }
SECTION 5. ORS 726.400 is amended to read:
726.400. (1) Unless { + a pledgor and a pawnbroker agree
to + } a longer loan period { + and the longer loan period is
written on the pawn ticket, + } { - is agreed upon by the
pledgor and the pawnbroker, all loans shall - } { + a pledge
loan shall + } be made for a period of 60 days.
{ - However, - } A pledge may be redeemed and the pledge loan
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repaid at any time before the loan period expires. { - All pawn
tickets shall - } { + A pawn ticket must + } clearly state the
expiration date of the loan.
{ + (2) A pledgor and a pawnbroker may agree to renew a
pledge loan for successive periods of 60 days or for successive
periods of a length upon which the pledgor and pawnbroker agree.
A loan is a renewal of the original loan if the pledgor pays only
the interest and the fees on the loan or pays the principal, the
interest and the fees on the loan but accepts another pledge loan
from the pawnbroker on the same pledge on the same day. + }
{ - (2) - } { + (3) + } Except for a pledge
{ - securing - } { + that secures + } a pledge loan of
{ - less than - } $500 { + or less + }, { - before any
pledge may be deemed forfeited, - } the pawnbroker { + may not
deem a pledge to be forfeited until:
(a) The pawnbroker notifies the pledgor that the pledge is at
risk of forfeiture + }after { - the expiration of - } the
period
{ - mentioned - } { + described + } in subsection (1) of this
section { + expires; and
(b) The pledgor has had an opportunity to redeem the pledge as
provided in this section. + } { - must cause a notice to be
given the pledgor as provided in this section. The notice shall
notify the pledgor of the forfeiture of the pledge. - }
{ + (4) + } The notice { + described in subsection (3) of
this section + }
{ - shall - } { + must + } be in writing and delivered
postpaid { + in a securely closed envelope addressed to the
pledgor at the last-known address shown on the pawnbroker's
record + } by { + :
(a) + } { - certified - } { + Regular + } mail,
{ - return receipt required, in a securely closed envelope
addressed to the pledgor at the last-known address shown on the
pawnbroker's record. - } { + if the pledge secures a loan of
more than $500 but less than $1,500; or
(b) Certified mail, return receipt requested, and regular mail,
if the pledge secures a loan of $1,500 or more.
(5) + } Delivery of a notice under this { - subsection - }
{ + section + } occurs when the notice is mailed as provided in
this { - subsection - } { + section + }. { - The certified
return receipt card or the returned envelope shall be kept on
file by the pawnbroker for at least two years from date of
mailing thereof as evidence of the notification. The postal costs
and a reasonable charge for preparing the notice shall be borne
by the pledgor. - } { + As evidence of the notification, the
pawnbroker shall keep a copy of each notice the pawnbroker sends
by regular or certified mail, together with the certified return
receipt card or the returned envelope for the notice, for at
least two years. The pledgor shall bear the postal costs and a
reasonable charge for preparing a notice for delivery by
certified mail. + }
{ + (6) + } A pledgor { - shall have - } { + has + } a
grace period of 30 days after the delivery of the notice required
by this subsection in which to redeem the pledge { - , - } or
to renew the loan { - for one additional 60-day period, or
less, - } by paying any renewal fee and all the accrued interest
and fees to date. There { - shall be - } { + is + } no grace
period { - following the expiration of any - } { + after
a + } renewal { + expires + }.
Enrolled House Bill 2753 (HB 2753-A) Page 3
{ - (3) - } { + (7) + } { - Any - } { + A + } pledge
that is not redeemed within 30 days after the { + mailing date
of a notice given under this section + }
{ - expiration of the 60-day loan period, - } or within the
{ - period of - } renewal { + period + }, if any, { - shall
be deemed forfeited and - } { + is forfeited. + } The
pawnbroker { - shall thereby acquire all - } { + acquires + }
the { + pledgor's + } { - right, - } title and interest { +
in + } { - of the pledgor therein - } { + the forfeited
pledge and the right + } to hold and dispose of the pledge as the
pawnbroker's own property.
SECTION 6. { + Section 7 of this 2009 Act is added to and made
a part of ORS chapter 726. + }
SECTION 7. { + A city or county may impose and collect from a
pawnbroker a fee of not more than $1 for each pledge loan the
pawnbroker makes in a calendar year, except a renewal of a pledge
loan, for the purpose of administering and using a system,
including an electronic database, to track pledged articles. The
pawnbroker may charge a pledgor only the amount of the fee that
the city or county imposes under this section. + }
SECTION 8. { + Section 7 of this 2009 Act and the amendments
to ORS 726.300, 726.340, 726.390, 726.395 and 726.400 by sections
1 to 5 of this 2009 Act apply to transactions that occur on or
after the effective date of this 2009 Act. + }
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Enrolled House Bill 2753 (HB 2753-A) Page 4
Passed by House April 23, 2009
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 18, 2009
...........................................................
President of Senate
Enrolled House Bill 2753 (HB 2753-A) Page 5
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled House Bill 2753 (HB 2753-A) Page 6