Except as otherwise provided by Article 5 of the General Business Law,
no person shall engage in business as a collateral loan broker without first
obtaining an annual license therefor.
Every applicant hereunder shall file with the Village Clerk, prior to
the delivery of a license, a surety bond executed by the person so licensed
and issued by an acceptable surety company, in form approved by the Village
Attorney, in an amount as adopted by resolution of the Board of Trustees, conditioned for the faithful performance of the duties and obligations
pertaining to the business so licensed, as set forth by ordinance and by the
laws of the State of New York. Such bond shall provide that action thereon
may be brought by any person to whom a judgment has been awarded because of
loss caused by such licensee's fault or default.
The license fee to be charged for carrying on the business shall be
as adopted by resolution of the Board of Trustees for each year or the fraction of any year during which the licensed
business is carried on.
Every such collateral loan broker shall, at the time of each loan, deliver to the person pawning or pledging any goods, article or thing a memorandum or note signed by him, containing the substance of the entry required to be made in his book by §
117-4 hereof, and no charge shall be made or received by any collateral loan broker for any such entry, memorandum or note.
No collateral loan broker shall ask, demand or receive any greater rate
of interest than 3% per month or any fraction of a month for the first six
months and 2% per month for each succeeding month upon any loan not exceeding
the sum of $100 or more than 2% per month for the first six months and 1%
per month for each succeeding month on any loan exceeding the sum of $100.
A notice containing a list of such rates of interest as herein provided shall
be conspicuously displayed within the premises of such collateral loan broker.
Except as otherwise provided by Article 5 of the General Business Law, penalties shall be as provided in Chapter
1, General Provisions, Article
II.