City of Sikeston, MO Pawnbrokers

For the purpose of this Chapter, the following terms, phrases and words shall have the meanings given herein and shall apply in the interpretation and enforcement of this Chapter unless otherwise specifically stated:

DIRECTOR

The Director of the City of Sikeston Department of Public Safety.

MONTH

That period of time from one (1) date in a calendar month to the corresponding date in the following calendar month, but if there is no such corresponding date, then the last date of such following month and when computations are made for a fraction of a month, a day shall be one-thirtieth (1/30) of a month.

NET ASSETS

The book value of the current assets of a person or pawnbroker less its applicable liabilities as stated in this Section. Current assets include the investment made in cash, bank deposits, merchandise inventory and loans due from customers excluding the pawn service charge. Current assets do not include the investments made in fixed assets of real estate, furniture, fixtures or equipment; investments made in stocks, bonds or other securities, investments made in prepaid expenses or other general intangibles. Applicable liabilities include trade or other accounts payable; accrued sales, income or payables that are unsecured or secured in whole or part by current assets. Applicable liabilities do not include liabilities secured by assets other than current assets. Net assets must be represented by a capital investment unencumbered by any liens or other encumbrances to be subject to the claims of general creditors.

PAWNBROKER

Any person engaged in the business of lending money on the security of pledged goods or engaged in the business of purchasing tangible personal property on condition that it may be redeemed or repurchased by the seller for a fixed price within a fixed period of time.

PAWNSHOP

The location at which or premises in which a pawnbroker regularly conducts business.

PERSON

An individual, partnership, corporation, joint venture, trust, association or any other legal entity however organized.

PERSON OF GOOD MORAL CHARACTER

A person who has not been convicted of any State, Federal or municipal offense involving drugs or narcotics, robbery, burglary, theft, stealing, receiving stolen property, embezzlement, extortion, forgery, gambling, bribery, perjury, any weapons offense or any crime of violence.

PLEDGED GOODS

Tangible personal property other than choses in action, securities or printed evidence of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of his/her business in connection with a pawn transaction.

SECURED PERSONAL CREDIT LOAN

Every loan of money made in this City, the payment of which is secured by a security interest in tangible personal property which is physically delivered into the hands of the lender at the time of the making of the loan and which is to be retained by the lender while the loan is a subsisting obligation.

Section 620.020 Licenses Required.

[Ord. No. 5828 §IV, 11-1-2010]

No person shall operate a pawnshop in the City of Sikeston unless such person obtains a pawnshop license issued by the City Clerk or his/her designee of the City of Sikeston, Missouri. A license is required for each place where pawnbroking business is transacted and no one shall act as an agent, employee or solicitor for any pawnbroker while such pawnbroker is engaged in such business at a place other than that specified in the license.

Section 620.030 Application For New Pawnshop License.

[Ord. No. 5828 §IV, 11-1-2010]

An application for a new pawnshop license shall be under oath and shall state the full name and place of residence of the applicant, the place where the business is to be conducted and other relevant information required by the Director. If the applicant is a partnership, the application shall state the full name and address of each partner and whether such partner is a general partner or a limited partner. If the applicant is a corporation, the application shall give the full name and address of each officer, shareholder and director. Further, a "certificate in good standing" shall be filed with the Director. The application shall be accompanied by:

An investigation fee of five hundred dollars ($500.00) if the applicant is unlicensed at the time of applying for the pawnshop or two hundred fifty dollars ($250.00) if the application involves a second (2nd) or additional license to an applicant previously licensed for a separate location or involves substantially identical principals and owners of a licensed pawnshop at a separate location; and

Proof of general liability insurance in the amount of fifty thousand dollars ($50,000.00); and

An annual fee of five hundred dollars ($500.00).

Section 620.040 Transfer of Existing Pawnshop License — Change of Ownership of Licensed Pawnshop.

[Ord. No. 5828 §IV, 11-1-2010]

Transfer of an existing pawnshop license or the change of ownership of a licensed pawnshop is the same as an initial application for a new pawnshop license. Licenses are personal to the licensee.

Section 620.050 Application For License.

[Ord. No. 5828 §IV, 11-1-2010]

The application form for a new license, a renewal license, transfer of an existing license or change of ownership of a licensed pawnshop shall be on forms prescribed and provided by the Director and shall contain information sufficient to inform the Director regarding the qualifications of the applicant for a license or renewal license.

Section 620.060 Investigation By Director.

[Ord. No. 5828 §IV, 11-1-2010]

The Director shall investigate the facts contained in an application for a new pawnshop license and shall request assistance of any other person having knowledge of the facts contained in the application or who is authorized to investigate those facts.

Section 620.070 Standards For Issuance.

[Ord. No. 5828 §IV, 11-1-2010]

No license shall be issued to any person who:

Is not of good moral character or to any pawnshop employing persons who are not of good moral character; or

Makes a false statement of material facts in the application for a license or renewal license; or

Does not have net assets of at least fifty thousand dollars ($50,000.00) readily available for use in conducting business as a pawnshop for each licensed pawnshop; or

Does not file with the City Clerk or his/her designee a bond satisfactory to the Director in an amount of five thousand dollars ($5,000.00) with a surety company qualified to do business in this City. The aggregate liability of such surety shall not exceed the amount stated in the bond. The bond shall run to the City for the use of the City and of any person(s) who may be a cause of action against the obligor of such bond under the provisions of this Chapter. Such bond shall be conditioned that the obligor will comply with the provisions of this Chapter and by all rules and regulations adopted by the Director and will pay to the City and to any such person(s) from such obligor under and by virtue of the provisions of this Chapter or any rules adopted by the Director pursuant to this Chapter during the time such bond is in effect.

If the Director is unable to verify that the applicant meets the net assets requirement for a licensed pawnshop, the Director may require a finding, including the presentation of a current balance sheet, by an independent certified public accountant, that the accountant has reviewed the books and records of the applicant and that the applicant meets the net assets requirement of this Chapter.

Section 620.080 Limitations.

[Ord. No. 5828 §IV, 11-1-2010; Ord. No. 5981 §§I — II, 3-19-2015; Ord. No. 6108, 7-30-2018]

No license shall be issued for the operation of a pawnshop, as defined herein, when the pawnshop will be located within three hundred (300) feet of any church or school, or within one hundred fifty (150) feet of residentially zoned property.

No license shall be issued for the operation of a pawnshop, as defined herein, when the pawnshop will be located within five hundred (500) feet of another pawnshop.

Licensed pawnshop(s) in operation within the City limits of the City of Sikeston on or before December 1, 2010, shall be exempted from Section 620.080(A) and (B).

Section 620.090 Subsequent License Applications.

[Ord. No. 5828 §IV, 11-1-2010]

The renewal application shall be filed with the Director or his/her designee by June first (1st) of each year and shall be on the forms and shall contain such information as the Director may require. The forms shall contain such information as will assist the Director in determining whether conditions have changed, and whether a renewal license should be issued for the subsequent licensing year. The Director may request the assistance of any other City employee or person having knowledge of the truth or falsity of the matters contained in the application or who is able to investigate those matters.

The Director or his/her designee shall have the power and duty to determine whether each application for such license shall be approved or disapproved. Upon disapproval of any application for a license, the Director or his/her designee shall so notify the applicant in writing, setting forth therein the grounds and reasons for disapproval. Upon approval of any application for a license, the Director or his/her designee shall cause the City Collector to issue to the applicant the appropriate license upon the applicant's remittance of payment to the City Collector. The City Collector shall immediately issue a license upon payment, a copy of the license shall be filed with the City Clerk or his/her designee.

The annual fee for the issuance of a renewal license is five hundred dollars ($500.00). Renewal becomes effective July first (1st) of each year.

Section 620.100 Suspension or Revocation of License.

[Ord. No. 5828 §IV, 11-1-2010]

If the Director believes that conditions have changed such that the holder of a pawnshop license would not still be eligible to receive a pawnbroker's license or that the holder of the pawnshop license is in violation of this Chapter or State law pertaining to pawnshops, the Director may suspend the license.

If the Director believes that the holder of a pawnshop license may remedy the situation, giving rise to the Director's belief that conditions have changed and has not previously been in violation of this Chapter or State law pertaining to pawnshops, the Director may suspend the license. If the Director believes that the changed condition(s) are such that, if true, the licensee would not be able to remedy the situation in a reasonable time or if the holder of the pawnshop license has previously been in violation of this Chapter or State law pertaining to pawnshops, then the Director may revoke the pawnshop license.

If the Director believes that the safety, morals or peace of residents of the City of Sikeston, Missouri, is immediately affected by the change in conditions, the Director may suspend or revoke the license prior to a hearing, but he/she shall afford the licensee a hearing within five (5) days of the suspension or revocation if the licensee desires such a hearing. If the Director believes that the changed condition is not of such imminent hazard to the safety, morals or peace of the residents of the City of Sikeston, he/she may have a hearing prior to his/her action. He/she shall give the licensee at least ten (10) days' notice of the hearing.

Any party aggrieved by a decision of the Director shall have the right of appeal to the Circuit Court of Scott or New Madrid County.

Section 620.110 Receipt of Pledged Property — Contents, Loss of, Effect.

[Ord. No. 5828 §IV, 11-1-2010]

At the time of making any secured personal credit loan, the lender shall execute and deliver to the borrower a receipt for and describing the tangible personal property subjected to the security interest to secure the payment of the loan. The receipt shall contain the following:

The name and address of the pawnshop;

The name and address of the pledgor, the pledgor's description and the driver's license number, military identification number, identification certificate number, or other official number capable of identifying the pledgor;

The date of the transaction;

An identification and description of the pledged goods, including serial numbers if reasonably available;

The amount of cash advanced or credit extended to the pledgor;

The amount of the pawn service charge;

The total amount which must be paid to redeem the pledged goods on the maturity date;

The maturity date of the pawn transaction; and

A statement to the effect that the pledgor is not obligated to redeem the pledged goods, and that the pledged goods may be forfeited to the pawnbroker sixty (60) days after the specified maturity date.

The pawnbroker shall be required, in accordance with local ordinances, to furnish appropriate law enforcement authorities with copies of information contained in Subdivisions (1) to (4) of Subsection (A) of this Section and information contained in Subdivision (6) of Subsection (4) of Section 367.040, RSMo. The pawnbroker may satisfy such requirements by transmitting such information electronically to a database in accordance with this Section, except that paper copies shall be made available for an on-site inspection upon request of any appropriate law enforcement authority.

As used in this Section, the following terms mean:

DATABASE

A computer database established and maintained by a third (3rd) party engaged in the business of establishing and maintaining one (1) or more databases.

PERMITTED USER

Persons authorized by law enforcement personnel to access the database.

REPORTABLE DATA

The information required to be recorded by pawnbrokers for pawn transactions pursuant to Subdivisions (1) to (4) of Subsection (A) of this Section and the information required to be recorded by pawnbrokers for purchase transactions pursuant to Subdivision (6) of Subsection (4) of Section 367.040, RSMo.

REPORTING PAWNBROKER

A pawnbroker who chooses to transmit reportable data electronically to the database.

The accessing of a single database record.

The database shall provide appropriate law enforcement officials with the information contained in Subdivisions (1) to (4) of Subsection (A) of this Section and other useful information to facilitate the investigation of alleged property crimes while protecting the privacy rights of pawnbrokers and pawnshop customers with regard to their transactions.

The database shall contain the pawn and purchase transaction information recorded by reporting pawnbrokers pursuant to this Section and Section 367.040, RSMo., and shall be updated as requested. The database shall also contain such security features and protections as may be necessary to ensure that the reportable data maintained in the database can only be accessed by permitted users in accordance with the provisions of this Section.

The third (3rd) party's charge for the database shall be based on the number of permitted users. Law enforcement agencies shall be charged directly for access to the database, and the charge shall be reasonable in relation to the costs of the third (3rd) party in establishing and maintaining the database. No reporting pawnbroker or customer of a reporting pawnbroker shall be charged any costs for the creation or utilization of the database.

The information in the database shall only be accessible through the Internet to permitted users who have provided a secure identification or access code to the database but shall allow such permitted users to access database information from any jurisdiction transmitting such information to that database. Such permitted users shall provide the database with an identifier number of a criminal action for which the identity of the pawn or purchase transaction customer is needed and a representation that the information is connected to an inquiry or to the investigation of a complaint or alleged crime involving goods delivered by that customer in that transaction. The database shall record, for each search, the identity of the permitted user, the pawn or purchase transaction involved in the search, and the identity of any customer accessed through the search. Each search record shall be made available to other permitted users regardless of their jurisdiction. The database shall enable reporting pawnbrokers to transmit to the database through the Internet reportable data for each pawn and purchase transaction.

Any pawnbroker licensed pursuant to Section 367.043, RSMo., shall meet the following requirements:

Provide all reportable data to appropriate users by transmitting it through the Internet to the database;

Transmit all reportable data for one (1) business day to the database prior to the end of the following business day;

Make available for on-site inspection to any appropriate law enforcement official, upon request, paper copies of any pawn or purchase transaction documents.

If a reporting pawnbroker or permitted user discovers any error in the reportable data, notice of such error shall be given to the database, which shall have a period of thirty (30) days in which to correct the error. Any reporting pawnbroker experiencing a computer malfunction preventing the transmission of reportable data or receipt of search requests shall be allowed a period of at least thirty (30) but no more than sixty (60) days to repair such malfunction, and during such period such pawnbroker shall not be deemed to be in violation of this Section if good faith efforts are made to correct the malfunction. During the periods specified in this Subsection, the reporting pawnbroker and permitted user shall arrange an alternative method or methods by which the reportable data shall be made available.

No reporting pawnbroker shall be obligated to incur any cost, other than Internet service costs, in preparing, converting or delivering its reportable data to the database.

If the pawn ticket is lost, destroyed or stolen, the pledgor may so notify the pawnbroker in writing, and receipt of such notice shall invalidate such pawn ticket, if the pledged goods have not previously been redeemed. Before delivering the pledged goods or issuing a new pawn ticket, the pawnbroker shall require the pledgor to make a written affidavit of the loss, destruction or theft of the ticket. The pawnbroker shall record on the written statement the identifying information required, the date the statement is given, and the number of the pawn ticket lost, destroyed or stolen. The affidavit shall be signed by a notary public appointed by the Secretary of State pursuant to Section 486.205, RSMo., to perform notarial acts in this State.

Section 620.120 Loans Due, When—Return of Collateral, When — Restrictions.

[Ord. No. 5828 §IV, 11-1-2010]

Every secured personal credit loan shall be due and payable in lump sum thirty (30) days after the date of the loan contract or, if extended, thirty (30) days after the date of the last preceding extension of the loan and if not so paid when due, it shall, on the next day following, be in default. The lender shall retain possession of the tangible personal property subjected to the security interest to secure payment of any secured personal credit loan for a period of sixty (60) days next following the date of default. If, during the period of sixty (60) days, the borrower shall pay to the lender the principal sum of the loan with the loan fee(s) and the interest due thereon to the date of payment, the lender shall thereupon deliver possession of the tangible property to the borrower. If the borrower fails, during the period of sixty (60) days, to make payment, the title to the tangible personal property shall, on the day following the expiration of the period of sixty (60) days, pass to the lender without foreclosure and the right of redemption by the borrower shall be forever barred.

A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction.

Except as otherwise provided herein, any person properly identifying himself/herself and presenting a pawn ticket to the pawnbroker shall be presumed to be entitled to redeem the pledged goods described therein.

A pawnbroker shall not:

Accept a pledge from a person who is under eighteen (18) years of age;

Make any agreement requiring the personal liability of a pledgor in connection with a pawn transaction;

Accept any waiver, in writing or otherwise, of any right or protection accorded a pledgor under this Chapter or other law;

Fail to exercise reasonable care to protect pledged goods from loss or damage;

Fail to return pledged goods to a pledgor upon payment of the full amount due the pawnbroker on the pawn transaction. In the event such pledged goods are lost or damaged as a result of a pawnbroker's negligence while in the possession of the pawnbroker, it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with like kind of merchandise. Lenders shall not be responsible for loss of pledged articles due to acts of God, acts of war or riots. Each lender shall employ, if reasonably available in his/her area, a reputable company for the purpose of fire and theft security;

Purchase or take in trade used or secondhand personal property unless a record is established that contains:

The name, address, physical description and the driver's license number, military identification number, identification certificate number or other official number capable of identifying the seller;

A complete description of the property, including the serial number, if reasonably available or other identifying characteristic; and

A signed document from the seller providing that the seller has the right to sell the property.

Section 620.130 Definitions — Pledged Goods For Money, Pawnbroker Entitled Only To Goods Pledged, Exception, Misappropriated Goods — Procedure To Recover.

[Ord. No. 5828 §IV, 11-1-2010]

Definitions. As used in this Chapter, the following terms shall have these prescribed meanings:

CLAIMANT

A person who claims that property in the possession of a pawnbroker is misappropriated from the claimant and fraudulently pledged or sold to the pawnbroker.

CONVEYING CUSTOMER

A person who delivers property into the possession of a pawnbroker, either through a pawn transaction, a sale or trade, which property is later claimed to be misappropriated.

HOLD ORDER

A written legal instrument issued to a pawnbroker by a Law Enforcement Officer commissioned by the Law Enforcement Agency of the Municipality or County that licenses and regulates the pawnbroker, ordering the pawnbroker to retain physical possession of pledged goods in the possession of a pawnbroker or property purchased by and in the possession of a pawnbroker and not to return, sell or otherwise dispose of such property as such property is believed to be misappropriated goods.

LAW ENFORCEMENT OFFICER

The Sikeston Director of Public Safety or Public Safety Officer designated by the Director of Public Safety.

MISAPPROPRIATED

Stolen, embezzled, converted, or otherwise wrongfully appropriated or pledged against the will of the rightful owner or party holding a perfected security interest.

PLEDGOR

A person who pledges property to the pawnbroker.

PURCHASER

A person who purchases property from a pawnbroker.

SELLER

A person who sells property to a pawnbroker.

A pawnbroker shall have no recourse against the pledgor for payment on a pawn transaction except the pledged goods themselves, unless the goods are found to have been misappropriated.

A pawnbroker shall require of every person from whom the pawnbroker receives sold or pledged property proof of identification which includes a current address and, if applicable, telephone number, and a current picture identification issued by State or Federal Government.

If any seller fails to provide a pawnbroker with proof of identification, the pawnbroker shall hold such property for a period of thirty (30) days prior to selling or otherwise transferring such property, provided the seller has submitted a signed statement that the seller is the legal owner of the property and stating when or from whom such property was acquired by the seller.

To obtain possession of tangible personal property held by a pawnbroker which a claimant claims to be misappropriated, the claimant shall provide the pawnbroker with a written demand for the return of such property, a copy of a Police or Sheriff's report wherein claimant reported the misappropriation or theft of said property and which contains a particularized description of the property or applicable serial number, and a signed affidavit made under oath setting forth they are the true owner of the property, the name and address of the claimant, a description of the property being claimed, the fact that such property was taken from the claimant without the claimant's consent, permission or knowledge, the fact that the claimant has reported the theft to the Police, the fact that the claimant will assist in any prosecution relating to such property, the promise that the claimant will respond to court process in any criminal prosecution relating to said property and will testify truthfully as to all facts within the claimant's knowledge and not claim any testimonial privilege with respect to said facts. These documents shall be presented to the pawnbroker concurrently.

Upon being served with a proper demand by a claimant for the return of property pursuant to Subsection (E) of this Section, the pawnbroker shall return the property to the claimant, in the presence of a Law Enforcement Officer, within seven (7) days unless the pawnbroker has good reason to believe that any of the matters set forth in the claimant's affidavit are false or if there is a hold order on the property pursuant to Section 367.055, RSMo. If a pawnbroker refuses to deliver property to a claimant upon a proper demand as described in Subsection (E) of this Section, the claimant may file a petition in a court of competent jurisdiction seeking the return of said property. The non-prevailing party shall be responsible for the costs of said action and the attorney fees of the prevailing party. The provisions of Section 482.305, RSMo., to the contrary notwithstanding, a court of competent jurisdiction shall include a small claims court, even if the value of the property named in the petition is greater than three thousand dollars ($3,000.00).

If a pawnbroker returns property to a claimant relying on the veracity of the affidavit described in Subsection (E) of this Section, and later learns that the information contained in said affidavit is false or that the claimant has failed to assist in prosecution or otherwise testify truthfully with respect to the facts within the claimant's knowledge, the pawnbroker shall have a cause of action against the claimant for the value of the property. The non-prevailing party shall be responsible for the cost of said action and the attorney fees of the prevailing party.

Nothing contained in this Section shall limit a pawnbroker from bringing the conveying customer into a suit as a third (3rd) party, nor limit a pawnbroker from recovering from a conveying customer repayment of the full amount received from the pawnbroker from the pawn or sales transaction, including all applicable fees and interest charged, attorney's fees and the cost of the action.

Section 620.140 Pawnshop Not To Be Used As A Residence.

[Ord. No. 5828 §IV, 11-1-2010]

No pawnbroker or member of the pawnbroker's family or employee or any other person shall be permitted to live in a pawnshop or in rooms connecting therewith.

Section 620.150 Hours of Operation.

[Ord. No. 5828 §IV, 11-1-2010]

No pawnshop shall be open for business or receive as pawned, pledged or purchased, on any condition whatsoever, any article of personal property or other valuable thing between the hours of 8:00 P.M. on any day and 7:00 A.M. on the following day.

Section 620.160 Notice of Goods To Be Shipped Out of Town.

[Ord. No. 5828 §IV, 11-1-2010]

Every pawnbroker shall give the Director notice of all pawned goods to be shipped out of town, which notice shall state the name of the pledgee and the destination and date of shipment. Such goods shall not be shipped for at least seven (7) days after delivery of the copy of the register to the Director.

Section 620.170 Adequate Books and Records Required.

[Ord. No. 5828 §IV, 11-1-2010]

Each licensee shall keep, consistent with accepted accounting practices, adequate books and records relating to the licensee's pawn transactions, which books and records shall be preserved for a period of at least two (2) years from the date of the last transaction recorded therein.

Section 620.180 Rules.

[Ord. No. 5828 §IV, 11-1-2010]

The Director may issue such rules and regulations as he/she deems necessary to implement this Chapter and the policies contained herein.

Section 620.190 Penalty and Other Remedies.

[Ord. No. 5828 §IV, 11-1-2010]

Any person who violates any provision of this Chapter is guilty of a violation of this Chapter and may be punished by a fine not to exceed five hundred dollars ($500.00) or by imprisonment for not more than ninety (90) days, or by both such fine and imprisonment.