Chapter 726 — Pawnbrokers
2011 EDITION
PAWNBROKERS
CREDIT UNIONS; LENDING INSTITUTIONS;
PAWNBROKERS
GENERAL PROVISIONS
726.010 Definitions
726.020 Short
title; application of chapter
726.030 Construction
of chapter
LICENSING
726.040 Pawnbroker
license required
726.050 Requirements
for issuance of license
726.060 Application
for license; contents; fee
726.070 Applicant
to furnish bond or letter of credit; actions on bond or letter of credit
726.075 Grounds
for denial of license
726.080 Issuance
and denial of license
726.090 Form
of license; posting; transferability
726.100 Additional
licenses to same applicant
726.110 Change
of place of business
726.125 License
fees; fees for extra service
726.130 Annual
report of licensee
726.150 Revocation
and suspension of license
726.155 Procedure
for license denial, revocation or suspension
726.170 Reinstatement
or issuance of new license; fee
726.180 Expiration
of license; effect of revocation, suspension or surrender of license
726.190 Surrender
of license
726.250 Investigations
and examinations; cost
726.255 Investigation
of pawnbrokers; oaths; witnesses; subpoenas; depositions
REGULATION
726.260 Rules
and rulings
726.270 Prohibited
transactions
726.280 Register
and records of licensee
726.285 Records
of transactions by pawnbroker; delivery of copies to local police agency
726.290 Signing
of card, stub or record by pledgor
726.300 Contents
of pawn ticket; effect
726.310 Holder
presumed entitled to redeem
726.320 Redemption
by mail
726.330 Delivery
of pledge upon surrender of pawn ticket
726.340 Loss,
destruction or theft of pawn ticket; affidavit; liability
726.350 Alteration
726.360 Spurious
pawn tickets
726.370 Multiple
claimants of pledge; interpleader
726.380 Loss
of or injury to pledge; lien on pledge
726.390 Interest
rates and charges
726.395 Charges
related to firearms
726.400 Loan
period; renewal; forfeiture of pledge; notice; period for redeeming pledge
726.410 Record
of forfeited pledges
726.420 Effect
of charging excessive interest or fees
726.440 Enforcement
orders
726.450 Tracking
pledged articles; use of system; fee
PENALTIES
726.910 Civil
penalties
726.990 Criminal
penalties
GENERAL PROVISIONS
726.010 Definitions.
As used in this chapter, unless the context requires otherwise:
(1)
“Director” means the Director of the Department of Consumer and Business
Services.
(2)
“Pawnbroker” means any person, copartnership,
association or corporation:
(a)
Lending money at a higher rate of interest than 10 percent per annum on the
deposit or pledge of personal property other than choses
in action, vehicles required by law to be registered with the Department of
Transportation, securities or printed evidences of indebtedness;
(b)
Purchasing any personal property other than choses in
action, vehicles required by law to be registered with the Department of
Transportation, securities or printed evidences of indebtedness on the direct
or implied condition of selling it back at a stipulated price that would amount
to the payment of interest or consideration in excess of 10 percent per annum;
or
(c)
Doing business as storage warehouseman and lending money at a higher rate of
interest than 10 percent per annum upon goods, wares, merchandise or personal
property pledged or deposited as collateral security other than vehicles
required by law to be registered with the Department of Transportation.
(3)
“Pledge” means any article deposited with a pawnbroker in the course of the
business of the pawnbroker as defined in subsection (2) of this section.
(4)
“Pledgor” means the person who delivers a pledge into
the possession of a pawnbroker, unless the person discloses that the person is
or was acting for another, in which event “pledgor”
means the disclosed principal.
(5)
“Pledge loan” means a loan made by a pawnbroker to a pledgor
and secured by a pledge. [Amended by 1971 c.168 §1; 1985 c.762 §135; 1987 c.373
§71; 1993 c.744 §27]
726.020 Short title; application of
chapter. This chapter shall be known as the
Pawnbrokers Act. It is applicable to any person who qualifies under its
provisions, and to such other person as shall by violating any of its
provisions be subject to the penalties provided in ORS 726.990.
726.030 Construction of chapter.
Nothing in this chapter shall be construed or held to limit the rights, powers
or privileges granted to any person by any law of this state or of the United
States whereby the loaning of money or extending of credit is regulated,
provided, that such person is operating in compliance with the provisions of
such law.
LICENSING
726.040 Pawnbroker license required.
No person shall engage or continue in the business of a pawnbroker, or use any
assumed business name or advertising that in any way would lead the public to
believe the person is a licensed pawnbroker, except as authorized by this
chapter and without first procuring a license from the Director of the
Department of Consumer and Business Services as provided in this chapter. [Amended
by 1979 c.202 §1]
726.050 Requirements for issuance of
license. The Director of the Department of
Consumer and Business Services may not issue a license to a corporation,
limited liability company or limited liability partnership or to a person using
an assumed business name unless:
(1)
The limited liability company or limited liability partnership has filed the
required documents under ORS chapter 63 or 67;
(2)
The person using the assumed business name has registered the name under ORS
chapter 648; or
(3)
The corporation is an Oregon corporation in good standing or a foreign
corporation legally qualified to do business in this state. [Amended by 2007
c.360 §1]
726.060 Application for license; contents;
fee. (1) An application for the license
shall be in writing in a form prescribed by the Director of the Department of
Consumer and Business Services.
(2)
The application shall contain:
(a)
If the applicant is an individual, the name and both the residence and business
addresses of the applicant;
(b)
If the applicant is a partnership or association, the name and both the
residence and business addresses of every member of the partnership or
association;
(c)
If the applicant is a corporation, the name and both the residence and business
addresses of each officer and director of the corporation;
(d)
The county and city with street and number, if any, where the business is to be
conducted; and
(e)
Any other information that the director may require.
(3)
The applicant at the time of making application for the applicant’s first
licensed location in this state shall pay to the director a nonrefundable
application fee of $500. [Amended by 1971 c.218 §1; 1985 c.762 §136; 1997 c.842
§1; 2007 c.360 §2]
726.070 Applicant to furnish bond or
letter of credit; actions on bond or letter of credit.
(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. 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,
the person may, after the return unsatisfied either in whole or in part of any
execution issued upon the 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. The certified copy is prima facie
evidence in any court that the bond or letter of credit was duly executed and
delivered by each pawnbroker whose name appears on the bond or letter of
credit. [Amended by 1971 c.218 §2; 1979 c.202 §2; 1991 c.331 §125; 1993 c.18 §155;
1997 c.631 §544; 2003 c.176 §1; 2007 c.360 §3]
726.075 Grounds for denial of license.
The Director of the Department of Consumer and Business Services may not grant
a license to engage in the business of pawnbroker to any person if any person
named in the application submitted pursuant to ORS 726.060:
(1)
Is insolvent, either in the sense that the person’s liabilities exceed the
person’s assets or that the person cannot meet obligations as they mature, or
is in such financial condition that the person cannot continue in business with
safety to the person’s customers;
(2)
Has engaged in dishonest, fraudulent or illegal practices or conduct in any
business or profession;
(3)
Has willfully or repeatedly violated or failed to comply with a provision of
the Oregon Bank Act, the Oregon Credit Union Act, the Oregon Consumer Finance
Act or the Pawnbrokers Act, or any administrative rule or order adopted under
an Act identified in this subsection;
(4)
Has been convicted of a crime, an essential element of which is fraud;
(5)
Is not qualified to conduct a pawnbroker business on the basis of such factors
as training, experience and knowledge of the business;
(6)
Is permanently or temporarily enjoined by a court of competent jurisdiction
from engaging in or continuing any conduct or practice involving an aspect of
the pawnbroker business;
(7)
Is the subject of an order of the director, subjecting the person to a civil
penalty, or removing the person from an office in an entity regulated by either
director; or
(8)
Is the subject of an order that was issued by the regulatory authority of
another state or of the federal government with authority over such banking
institutions, credit unions, consumer finance companies or savings
associations, that was entered within the past five years and that subjects the
person to a civil penalty or removes the person from an office in a state
banking institution, a national bank, a state or federal savings association, a
state or federal credit union or a consumer finance company. [1977 c.135 §55;
1985 c.762 §137; 2009 c.541 §47; 2011 c.597 §294]
726.080 Issuance and denial of license.
(1) Conditioned upon the applicant’s compliance with this chapter, the payment
of the license fee and the filing of a bond or letter of credit on a form
approved by the Attorney General, and in the absence of any reason or condition
that in the judgment of the Director of the Department of Consumer and Business
Services might warrant the refusal of the granting of a license, including the
reasons set out in ORS 726.075, the director shall issue a license within 45
days after the date a complete application was received.
(2)
If the application is denied, the director shall indorse on the application
with the date the word “Disapproved” and shall immediately advise the applicant
by registered mail or by certified mail with return receipt of the reason for
the denial. [Amended by 1971 c.218 §3; 1977 c.135 §56; 1991 c.249 §69; 2007
c.360 §4]
726.090 Form of license; posting;
transferability. The licenses shall be in a form
prescribed by the Director of the Department of Consumer and Business Services
and shall state the address at which the business is to be conducted and the
full name of the pawnbroker. The license shall be kept conspicuously posted in
the place of business of the pawnbroker and shall not be transferable or
assignable. [Amended by 1971 c.218 §4]
726.100 Additional licenses to same
applicant. No pawnbroker shall transact any
business within the scope of this chapter except under the name at the place of
business named in the license. The Director of the Department of Consumer and
Business Services may issue more than one license to the same pawnbroker upon
the pawnbroker’s compliance with all the provisions of this chapter governing
an original issuance of a license for each such additional license. Each
additional license shall be for a separate and distinct place of business for
the making and completing of pledge loans as provided in this chapter.
726.110 Change of place of business.
Whenever a pawnbroker changes the place of business to another location within
the same city or town, the pawnbroker shall at once give written notice of the
change to the Director of the Department of Consumer and Business Services and
shall surrender the pawnbroker’s license for cancellation. Thereupon a new
license shall be issued by the director for the new location. A change in the
place of business of a pawnbroker to a location outside of the city or town
named in the original license is not permitted under the same license. [Amended
by 1971 c.218 §5; 2007 c.360 §5]
726.120
[Amended by 1971 c.218 §6; repealed by 1985 c.762 §196]
726.125 License fees; fees for extra
service. (1) Each pawnbroker shall pay to the
Director of the Department of Consumer and Business Services each year the
license fee determined by the director under subsection (2) of this section.
(2)
The director may charge and collect a license fee from each pawnbroker,
according to a license fee schedule established by the director by rule, for
the purpose of defraying the costs of performing supervision, enforcement and
other duties imposed by law upon the director in respect to pawnbrokers. In
setting the license fee schedule and allocating license fees among pawnbrokers,
the director shall take into consideration the costs of performing the duties
of the director relative to each pawnbroker, the amount of all other moneys
paid to the director under this chapter and the cost of developing and
maintaining a reasonable emergency fund. License fees under this subsection
shall be assessed and paid upon approval of a new license application, and not
later than December 15 or such date as may be specified by the director by rule
for renewal of a license.
(3)
In addition to the license fee collected under subsection (2) of this section,
whenever the director devotes any extra attention to the affairs of a
pawnbroker, either upon determination by the director or upon request of the
pawnbroker, the fee for the extra service shall be the actual cost thereof. [1985
c.762 §139; 1997 c.842 §2; 2007 c.768 §56]
726.130 Annual report of licensee.
Every pawnbroker, on or before January 15, shall submit to the Director of the
Department of Consumer and Business Services an annual report in a form
prescribed by the director, giving the following information:
(1)
The number of pledge loans and total amount outstanding at the beginning of the
year.
(2)
The number of pledge loans made during the year and the aggregate amount of the
pledge loans.
(3)
The number of pledge loans canceled during the year and the aggregate amount of
the canceled pledge loans.
(4)
The number of pledge loans and total amount outstanding at the close of the
year.
(5)
Any other information requested by the director. [Amended by 2005 c.21 §14]
726.140
[Repealed by 1971 c.743 §432]
726.150 Revocation and suspension of
license. (1) The Director of the Department of
Consumer and Business Services may revoke any license under this chapter if the
director finds that:
(a)
The pawnbroker has failed to pay the annual license fee or to maintain in
effect the required bond or to comply with any demand, ruling or requirement of
the director lawfully made pursuant to and within the authority of this chapter
or to comply with the provisions of law to keep the corporation in good standing
if such pawnbroker is a corporation;
(b)
The pawnbroker has violated any provision of this chapter or any rule or
regulation lawfully made by the director under and within the authority of this
chapter; or
(c)
Any fact or condition exists which, if it had existed at the time of the
original application for a license, would have warranted the director in
refusing originally to issue the license.
(2)
The director may, without notice or hearing, suspend any license for a period
not exceeding 30 days, pending investigation.
(3)
The director may revoke or suspend only the particular license with respect to
which grounds for revocation or suspension occur or exist, or, if the director
finds that such grounds for revocation or suspension are of general application
to all offices or to more than one office operated by the pawnbroker, the
director shall revoke or suspend all the licenses issued to the pawnbroker or
such number of licenses as such grounds apply to, as the case may be. [Amended
by 1971 c.734 §177; 1977 c.135 §57]
726.155 Procedure for license denial,
revocation or suspension. (1) Where the Director of the
Department of Consumer and Business Services proposes to refuse to issue a
license, or proposes to revoke or suspend a license, opportunity for hearing
shall be accorded as provided in ORS chapter 183.
(2)
Judicial review of orders under subsection (1) of this section shall be as
provided in ORS chapter 183. [1971 c.734 §179]
726.160
[Repealed by 1971 c.734 §21]
726.170 Reinstatement or issuance of new
license; fee. The Director of the Department of
Consumer and Business Services may reinstate any suspended license or issue a
new license to a pawnbroker whose license has been revoked, upon the pawnbroker’s
compliance with the provisions of law or any demand, ruling or requirement
lawfully made by the director pursuant to and within the authority of this
chapter. For such reinstatement or issuance of a new license a fee of $25 shall
be paid.
726.180 Expiration of license; effect of
revocation, suspension or surrender of license.
Every license issued under this chapter shall remain in force until it has been
surrendered, revoked or suspended in accordance with the provisions of this
chapter. No revocation, suspension or surrender of any license shall impair or
affect the obligation of any preexisting lawful contract between the pawnbroker
and any borrower. [Amended by 1971 c.218 §7]
726.190 Surrender of license.
Any pawnbroker may surrender any license by delivering to the Director of the Department
of Consumer and Business Services written notice that the pawnbroker thereby
surrenders such license, but such surrender shall not affect the pawnbroker’s
civil or criminal liability for acts committed prior to the surrender.
726.250 Investigations and examinations;
cost. (1)(a) 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 in
the pledge loans and business of every pawnbroker and of every person that the
director has reason to believe is acting as a pawnbroker without a license,
whether that person acts or claims to act as principal or agent, or under or
without the authority of this chapter.
(b)
For the purposes of paragraph (a) of this subsection:
(A)
Every pawnbroker and person that the director has reason to believe is acting
as a pawnbroker without a license shall give the director, examiner or other
employee of the department free access to the person’s place of business,
books, accounts, papers, records, files, safes and vaults; and
(B)
The director, examiner or other employee may:
(i) Compel the attendance of witnesses and examine the
witnesses under oath; and
(ii)
Require the production of documents or records.
(c)
The actual cost of each examination shall be paid to the director by every
person examined. The director may maintain an action for recovery of costs in
any court of competent jurisdiction.
(2)
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)
As often as the director determines necessary, 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. [Amended by
1973 c.449 §1; 1985 c.762 §140; 2003 c.176 §2; 2005 c.338 §28; 2007 c.360 §6]
726.255 Investigation of pawnbrokers;
oaths; witnesses; subpoenas; depositions. (1)
For the purpose of an investigation or proceeding under the Pawnbrokers Act,
the Director of the Department of Consumer and Business Services may administer
oaths and affirmations, subpoena witnesses, compel their attendance, take
evidence and require the production of books, papers, correspondence,
memoranda, agreements or other documents or records that the director considers
relevant or material to the inquiry.
(2)
If a person fails to comply with a subpoena issued under subsection (1) of this
section or a party or witness refuses to testify on any matter, the judge of
the circuit court for any county, on the application of the director, shall compel
obedience in the manner provided by law in the case of disobedience to a
subpoena issued in a civil action in the circuit court.
(3)
Each witness who appears before the director under a subpoena shall receive the
fees and mileage provided for witnesses in ORS 44.415 (2), except a witness
subpoenaed at the instance of parties other than the director or an examiner
shall not be compensated for attendance or travel unless the director certifies
that the testimony of the witness was material to the matter investigated.
(4)
The director in any investigation may cause the depositions of witnesses to be
taken in the manner prescribed by law for like depositions in civil suits in
the circuit court. [1979 c.202 §9; 1985 c.762 §141; 1989 c.980 §21]
REGULATION
726.260 Rules and rulings.
(1) The Director of the Department of Consumer and Business Services shall
administer and enforce this chapter.
(2)
In accordance with ORS chapter 183, the director may adopt rules and make any
specific rulings, demands and findings as may be necessary for the proper
conduct of the pawnbroker business and the enforcement of this chapter.
(3)
In addition to the notice requirements of ORS chapter 183, before the director
adopts a rule, the director shall submit a copy of the rule to each pawnbroker.
[Amended by 1985 c.762 §142]
726.270 Prohibited transactions.
No pawnbroker shall:
(1)
Transact any business between the hours of 9 p.m. and 7 a.m. except that on
Saturday the pawnbroker may transact business up to the hour of 10 p.m.
(2)
Accept a pledge from any person who is under the age of 18 years.
(3)
Convert or dispose of any unredeemed pledge before the time to redeem it has
expired or before the pledge has been forfeited to the pawnbroker as provided
in ORS 726.400. [Amended by 1975 c.739 §1]
726.280 Register and records of licensee.
(1) Every pawnbroker shall keep a register in which shall be recorded in ink or
in electronic form:
(a)
The date of the transaction.
(b)
The serial number of the pledge loan.
(c)
The name and address of the pledgor, or if the pledge
is made by a person acting as agent for a disclosed principal, the name and
address of principal and agent.
(d)
An identifying description of the article or articles pledged.
(e)
The amount of the pledge loan.
(f)
The date on which such pledge loan was canceled.
(g)
A notation as to whether it was redeemed or renewed, or whether the pledge was
forfeited.
(2)
All entries in the register shall be made in the English language and shall be
open to the inspection of any public official, police officer or any other
person who is duly authorized or empowered by the laws of this state to make
such inspection.
(3)
Every pawnbroker shall maintain an alphabetical file from which can be
determined the total obligations of any one pledgor.
(4)
Subject to the provisions of this chapter, the Director of the Department of
Consumer and Business Services may prescribe the form of other books and
records to be kept by the pawnbroker. All records shall be preserved and available
for at least two years after making the final entry on any pledge loan recorded
therein. [Amended by 1979 c.202 §3; 1987 c.373 §72; 2007 c.360 §7]
726.285 Records of transactions by
pawnbroker; delivery of copies to local police agency.
(1) In addition to the register required under ORS 726.280, a pawnbroker shall
record, for each transaction, the date, the name and address of the pledgor, the type and number of any proof of identification
presented by the pledgor, a physical description of
the pledgor and an identifying description of the
article pledged.
(2)
The pawnbroker shall deliver each record, or a copy thereof, made under this
section, within three days after the date of the transaction, to the local
police agency that has jurisdiction over the location at which the pawnbroker
has a place of business. [1979 c.202 §10]
726.290 Signing of card, stub or record by
pledgor. The
pawnbroker shall at the time of making a loan require the pledgor
or agent of the pledgor to write the signature and address
of the pledgor or the agent of the pledgor on a card, ticket, stub or any other approved
record, bearing the serial number of the loan corresponding to that recorded in
the pawnbroker’s register as provided in ORS 726.280. If the person is unable
to write, the person shall sign the person’s mark, and in such event the
pawnbroker shall record on the signature card, stub or record such information
as will enable the pawnbroker to identify the person in case of the loss of the
ticket.
726.300 Contents of pawn ticket; effect.
(1) A pawnbroker at the time the pawnbroker makes a pledge loan shall deliver
to the pledgor or an agent of the pledgor
a memorandum or pawn ticket on which the pawnbroker shall 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.
(h)
Other terms and conditions the pawnbroker may wish to insert that are not
inconsistent with this chapter.
(2)
Nothing that appears on the pawn ticket relieves the pawnbroker of the
obligation to exercise reasonable care in safekeeping articles pledged with the
pawnbroker. [Amended by 1979 c.202 §4; 2009 c.372 §1]
726.310 Holder presumed entitled to
redeem. Except as otherwise provided in this
chapter, the holder of the memorandum or pawn ticket shall be presumed to be
the person entitled to redeem the pledge. The pawnbroker shall deliver the
pledge to the person presenting such memorandum or pawn ticket upon payment of
principal and interest due on the pledge loan.
726.320 Redemption by mail.
When a pawn ticket, instead of being presented in person, is sent to the
pawnbroker by mail, accompanied with a money order, bank draft or cash for the
amount due including the cost of shipment and packing as desired, the pledge
shall be securely packed and forwarded by the pawnbroker in accordance with the
remitter’s instructions. If the remittance is insufficient to cover the amount
due and the cost of shipment and packing as desired, the pawnbroker shall
either notify the remitter of the amount of the deficiency or send the pledge
subject to the payment of the deficiency by the consignee. The pawnbroker’s
liability for the pledge shall cease upon delivery thereof to the carrier or
the agent of the carrier. [Amended by 1973 c.449 §4; 1981 c.192 §43]
726.330 Delivery of pledge upon surrender
of pawn ticket. Except as otherwise provided in
this chapter, a pawnbroker shall not be required to deliver a pledge except
upon surrender of the pawn ticket, unless the ticket is impounded or its
negotiation enjoined by a court of competent jurisdiction.
726.340 Loss, destruction or theft of pawn
ticket; affidavit; liability. If a pawn
ticket or memorandum is lost, destroyed or stolen, the pledgor
shall notify the pawnbroker of the loss, destruction or theft in writing. The
pawnbroker shall treat receipt of the notice as a stop against the pledge loan,
and thereafter the provisions of ORS 726.310 and 726.320 do not apply to the
pledge loan. Before delivering the pledge or issuing a new pawn ticket, the
pawnbroker may require the pledgor to make an
affidavit of the alleged loss, destruction or theft and may charge a fee of not
more than $3 for the lost, destroyed or stolen 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 paying accrued interest. The
pawnbroker shall incur no liability for 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 title with
respect to the pledge. [Amended by 2007 c.360 §8; 2009 c.372 §2]
726.350 Alteration.
The alteration of a pawn ticket shall not excuse the pawnbroker who issued it
from liability to deliver the pledge according to the terms of the pawn ticket
as originally issued, but shall relieve the pawnbroker of any other liability
to the pledgor or holder of the pawn ticket.
726.360 Spurious pawn tickets.
If a pawn ticket is presented to a pawnbroker which purports to be the one
issued by the pawnbroker, but which is found to be spurious, the pawnbroker may
seize and retain it without any liability whatsoever to the holder thereof. Any
such pawn ticket so seized shall be delivered or mailed immediately to the
Director of the Department of Consumer and Business Services accompanied by a
letter of explanation. [Amended by 1987 c.373 §73]
726.370 Multiple claimants of pledge; interpleader. If more than
one person claims the right to redeem a pledge, the pawnbroker shall incur no
liability for refusing to deliver the pledge until the respective rights of the
claimants have been adjudicated. In case of an action brought against the
pawnbroker for recovery of the pledge, the pawnbroker may as a defense require
all known claimants to interplead. If no action is brought against the
pawnbroker by either claimant within 30 days after notice of an adverse claim
the pawnbroker may proceed to dispose of the pledge as provided in this
chapter.
726.380 Loss of or injury to pledge; lien
on pledge. A pawnbroker shall be liable for the
loss of a pledge or a part thereof or for injury thereto resulting from failure
to exercise reasonable care. Such care shall include maintaining sufficient
insurance coverage against possible loss due to fire, theft and burglary so as
to protect the interest of the pledgor for the amount
of the loan. In case of loss the burden of proof to establish due care shall be
upon the pawnbroker. The pawnbroker shall have a first lien on any pledge for
the amount of the pledge loan and interest in all cases except where goods are
stolen or where a prior lien exists by virtue of any provision of law. [Amended
by 1979 c.202 §5]
726.390 Interest rates and charges.
(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 deduct or receive an amount in advance.
(2)
A pawnbroker may charge a set-up fee of 10 percent for loans and loan renewals
with a minimum charge of $2 and a maximum charge of $100.
(3)
A pawnbroker may charge a storage fee of not more than three percent for loans
and 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
an amount in addition to the interest provided for in this section. [Amended by
1973 c.449 §5; 1979 c.202 §6; 1981 c.192 §44; 1985 c.795 §1; 1997 c.842 §3;
2009 c.372 §3]
726.395 Charges related to firearms.
(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. [1973 c.449 §3; 1997 c.842 §4; 2009 c.372 §4]
726.400 Loan period; renewal; forfeiture
of pledge; notice; period for redeeming pledge.
(1) Unless a pledgor and a pawnbroker agree to a
longer loan period and the longer loan period is written on the pawn ticket, a
pledge loan shall be made for a period of 60 days. A pledge may be redeemed and
the pledge loan repaid at any time before the loan period expires. 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 longer. A loan is a renewal of
the original loan if the pledgor pays only the
interest and the fees on the loan or pays a portion of the principal, the
interest and the fees on the loan and accepts another pledge loan from the
pawnbroker on the same pledge on the same day.
(3)
Except for a pledge that secures a pledge loan of $500 or less, 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 period described in subsection (1) or (2) of
this section expires; and
(b)
The pledgor has had an opportunity to redeem the
pledge as provided in this section.
(4)
The notice described in subsection (3) of this section 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)
Regular mail, 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 section occurs when the notice is mailed as
provided in this section. 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 has a grace period of 30 days after the
mailing date of the notice required by this section in which to redeem the
pledge or to renew the loan by paying any renewal fee and all the accrued
interest and fees to date. There is no grace period after a renewal expires.
(7)
A pledge that is not redeemed within 30 days after the mailing date of a notice
given under this section or within the renewal period, if any, is forfeited.
The pawnbroker acquires the pledgor’s title and
interest in the forfeited pledge and the right to hold and dispose of the
pledge as the pawnbroker’s own property. [Amended by 1973 c.449 §6; 1979 c.202 §7;
1981 c.192 §45; 1985 c.795 §2; 1997 c.842 §5; 2009 c.372 §5; 2010 c.14 §1]
726.410 Record of forfeited pledges.
Every pawnbroker shall keep an indelible record, fully itemized, of all
forfeited pledges. The record shall contain the following information:
(1)
The number of the pledge.
(2)
The name and address of the pledgor.
(3)
The date of the pledge loan or the date of the last payment received as
interest or principal.
(4)
The date of mailing notice.
(5)
The date of forfeiture. [Amended by 1985 c.795 §3]
726.420 Effect of charging excessive
interest or fees. If any pawnbroker or agent,
member, officer or employee thereof, or any other person is found by the
Director of the Department of Consumer and Business Services to have charged,
contracted for or received any interest, fees or other charges in excess of
those permitted by ORS 726.390, then the pledge loan shall be void. The
pawnbroker shall forfeit the right to collect or receive any principal, interest
or charges whatsoever. The pawnbroker shall upon order of the director return
to the pledgor free from the pawnbroker’s lien the
pledge pledged by the pledgor without tender of
principal and interest and shall pay into the county school fund of the county
wherein the loan is made all payments and all fees or other charges previously
collected under such pledge loan. [Amended by 1975 c.544 §59a; 1987 c.373 §74]
726.430
[Repealed by 1975 c.544 §62]
726.440 Enforcement orders.
(1) The Director of the Department of Consumer and Business Services may, if
the director has reason to believe that a person has:
(a)
Violated, is violating or is about to violate ORS 726.040, 726.100, 726.110,
726.130, 726.270, 726.280, 726.285, 726.290, 726.300, 726.390, 726.400 or
726.410, a rule adopted under ORS 726.260 or an order issued under this
chapter, issue an order to cease and desist from the violation.
(b)
Failed to file the annual report required by ORS 726.130, issue an order to
file the report.
(c)
Filed information under ORS 726.060, 726.110, 726.130 or 726.250 that is false
or untruthful, issue an order to correct the filing.
(d)
Failed to maintain in effect the bond or an irrevocable letter of credit
required under ORS 726.070, issue an order to remedy the failure.
(2)(a)
The director shall serve an order under this section on the person named in the
order.
(b)
An order issued under this section becomes effective upon service on the person
named in the order.
(c)
ORS 183.413 to 183.470 apply to an order issued under this section.
(d)
Notwithstanding paragraph (c) of this subsection, a person may not obtain a
hearing on the order unless the person requests the hearing in writing within
20 days after service of the order.
(e)
A person who does not request a contested case hearing may not obtain judicial
review of the order.
(f)
The director may vacate or modify an order issued under this section. A
modified order is effective upon service on the person named in the order.
(3)
The authority conferred by this section is in addition to and not in lieu of
any other authority conferred on the director. [2005 c.338 §27]
726.450 Tracking pledged articles; use of
system; fee. 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. [2009
c.372 §7]
PENALTIES
726.910 Civil penalties.
(1) Any person who violates ORS 726.040, 726.100, 726.110, 726.130, 726.270,
726.280, 726.285, 726.290, 726.300, 726.390, 726.400 or 726.410 or any rule
adopted under ORS 726.260 or an order issued under ORS 726.440 shall forfeit a
civil penalty in an amount determined by the Director of the Department of
Consumer and Business Services of not more than $2,500. The civil penalty forfeited
shall be paid into the State Treasury and credited as provided in ORS 705.145.
In addition, the director may revoke the license of any licensee who violates
any such provision.
(2)
The civil penalty may be recovered in an action brought in the name of the
State of Oregon in any court of appropriate jurisdiction or may be imposed as
provided in ORS 183.745.
(3)
In any court action with respect to a civil penalty, including judicial review
under ORS 183.745, the court may review the penalty as to both liability and
reasonableness of amount. [1975 c.544 §61; 1985 c.762 §143; 1991 c.734 §99;
2005 c.338 §29]
726.990 Criminal penalties.
(1) Violation, or participation in the violation, of any provision of this
chapter by any pawnbroker or any agent, member, officer or employee thereof, or
any other person is a Class B misdemeanor.
(2) Upon conviction under subsection (1)
of this section, no license shall be granted to such person, nor to the husband
or wife of such person, nor to any partnership, association or corporation of
which the person is an agent or member, until two years after the date of the
conviction. [Amended by 1971 c.743 §425; 1987 c.373 §75; 2011 c.597 §295]
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