[HISTORY: Adopted by the City Council of the City of Troy 3-1-1973
as Ch. 21of the 1973 Code. Amendments noted where applicable.]
The term “collateral loan broker,” as used in this chapter,
shall be construed so as to include any person:
A.
Loaning money on deposit or pledge of personal property, other
than securities or printed evidences of indebtedness;
B.
Dealing in the purchasing of personal property on condition of
selling back at a stipulated price; or
C.
Designated or doing business as furniture storage warehouse and
loaning and advancing money upon goods, wares or merchandise pledged or deposited
as collateral security.
If any person shall be aggrieved by the misconduct of any licensed collateral
loan broker under this chapter, and shall recover judgment against him/her
therefor, such person may, after the return unsatisfied either in whole or
in part of any execution issued upon such judgment, maintain an action in
his/her own name upon the bond of such collateral loan broker in any court
having jurisdiction of the amount claimed, provided such court shall, upon
application made for the purpose, grant such leave to prosecute.
Every collateral loan broker shall keep a book in which shall be fairly
written, at the time of each loan, an account and description of the goods,
articles or things pawned or pledged, the amount of money loaned thereon,
the time of pledging the same, the rate of interest to be paid on such loan
and the name and residence of the person pawning or pledging the goods, articles
or things.
Every 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/her containing the substance of the entry required by § 191-3 to be made in his/her book. No charge shall be made or received by any collateral loan broker for any such entry, memorandum or note.
The holder of the memorandum or note mentioned in § 191-4 shall be presumed to be the person entitled to redeem the pledge, and the collateral loan broker shall deliver such article to the person so presenting such memorandum or note on payment of interest and principal.
Should the ticket be lost or mislaid, the pawnor shall at once apply
to the collateral loan broker to permit such person to examine his/her books,
and on finding the entry for such ticket, note or memorandum so lost and upon
his/her giving to the collateral loan broker an exact description of the article
pawned, the collateral loan broker shall issue a second or stop ticket for
the same. In case such pawnor neglects to so apply and examine such books
and receive such memorandum or note in the manner above stated, the collateral
loan broker will be bound to deliver the pledge to any person producing such
ticket for the redemption thereof.
This chapter is not to be construed as in any manner limiting or affecting
a collateral loan broker's common-law liability in cases where goods are stolen
or other legal defects of title exist in the pledger.
The record book shall at all reasonable times be open to the inspection
of the Mayor, all judges of the criminal courts, the Chief of Police, the
police, or any person who shall be duly authorized in writing for that purpose
by any of them, and who shall exhibit such written authority to the collateral
loan broker.
It shall be unlawful for any collateral loan broker to 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 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.
It shall be unlawful for any collateral loan broker to purchase any
secondhand furniture, metals, clothing or other article or thing whatever,
offered to him/her as a pawn or pledge. It shall also be unlawful for any
such collateral loan broker, licensed under this chapter as such, to engage
in any secondhand business or to receive in pawn or as a pledge any instrument
or weapon mentioned in § 265 of the Penal Law of the state.
It shall be unlawful for any collateral loan broker to sell any pawn
or pledge until the same has remained four months in his/her possession. All
such sales shall be at public auction and not otherwise and shall be conducted
in the City.
No pledge shall be sold unless written or printed notice of intention
to sell, with a statement of the article to be sold, has been first mailed
by letter addressed to the pledger, at the address given at the time of pledging,
at least 10 days prior to the date of sale. Notice of each such sale shall
be published for at least six days previous thereto, in at least one newspaper
printed in the City. Such notice shall specify the time and place at which
such sale is to take place, together with a statement of the class of pledges
to be sold and the inclusive dates and numbers of the pawn tickets of the
pledges to be sold.
If the pledge, at a sale, shall be purchased by the collateral loan
broker, the pledger shall be entitled to redeem the same within 10 days thereafter
by tendering to the collateral loan broker the amount of the loan with the
interest due thereon.
The surplus money, if any, arising from any sale, after deducting the
amount of the loan, the interest then due on the same, and the expense of
the advertisement and sale, shall be paid over by the collateral loan broker
to the person who would be entitled to redeem the pledge in case no such sale
had taken place.
It shall be unlawful for any collateral loan broker to purchase, accept
or receive any article or thing whatever offered to him/her as a pawn or pledge
by any minor actually or apparently under the age of 21 years.
It shall be unlawful for any person to carry on the business of a collateral
loan broker, within the corporate limits of the City, without having first
obtained from the Mayor a license authorizing such person to carry on the
same in the manner and upon the conditions stated in this chapter.
The Mayor may from time to time grant, under his/her name and the official
seal of the City, to such citizens as he/she shall deem proper and who shall
produce to him/her satisfactory evidences of their good character, a license
authorizing such citizens to carry on the business of a collateral loan broker.
Every person licensed under this chapter shall, at the time of receiving
such license, file with the Mayor granting the same a bond payable to the
City, to be executed by the person so licensed and by two responsible sureties,
in the penal sum of $5,000, to be approved by the Mayor. Such bond shall be
conditioned for the faithful performance of the duties and obligations pertaining
to the business so licensed.
Any person receiving a license under this chapter shall pay therefor
the sum of $250, for the use of the City yearly.
The license issued under this chapter shall designate the location at
which the licensee shall carry on the business of a collateral loan broker.
It shall be unlawful for any person to carry on the business of a collateral
loan broker without being duly licensed under this chapter or at any other
location than the one designated in the license.
Every license issued under this chapter shall expire one year from the
date thereof and may be renewed on application to the Mayor each and every
year on payment of the fee specified in this chapter and upon performance
of the other conditions contained in this chapter.
The Mayor shall have full power and authority to revoke any license
issued under this chapter for cause.
