[HISTORY: Adopted by the Town Board of the Town of Islip 6-23-2009 by L.L. No.
4-2009.[1] Amendments noted where applicable.]
General Business Law § 40 authorizes the licensing
authority of the local governing body to issue licenses to carry on
the business of a collateral loan broker. Therefore, this chapter
is being enacted, pursuant to the requirements and standards set forth
in Article 5 of the General Business Law, to establish a procedure
by which the Office of the Town Clerk may issue said licenses.
As used in this chapter, the following terms shall have the
meanings indicated:
Any person, partnership or corporation:
A.
Loaning
money on deposit or pledge of personal property, other than securities
or printed evidences of indebtedness; or
B.
Dealing
in the purchasing of personal property on condition of selling it
back at a stipulated price; or
C.
Designated
or doing business as a furniture storage warehouseman and loaning
and advancing money upon goods, wares or merchandise pledged or deposited
as collateral security.
As required by General Business Law § 53, a copy of
the collateral loan broker's registration statement shall be
filed with the Town Clerk of the Town of Islip prior to the establishment
of any premises as a collateral loan broker business.
A.
Pursuant
to Article 5 of the New York State General Business Law, and in conformance
with the provisions of this chapter, a license shall be obtained from
the Town Clerk prior to the establishment of any collateral loan broker
business in the Town of Islip. The fee for such license shall be the
maximum amount authorized under §§ 40 and 41 of Article
5 of the General Business Law, or such successor sections of that
law as may be authorized by the New York State Legislature.
B.
No
person, corporation, partnership, firm or association shall carry
on the business of a collateral loan broker within the Town of Islip
without first obtaining a collateral loan broker license.
C.
Bonds;
fees; conditions. Each collateral loan broker shall furnish a bond
to the Town of Islip, with fees and conditions as set forth in § 41
of Article 5 of the New York State General Business Law. Any action
on said bonds shall be in accordance with § 42 of Article
5 of that law.
D.
All
licenses shall be placed and, at all times, displayed in a conspicuous
place at the licensee's place of activity or business for which
it is issued.
E.
Sign
requirements.
(1)
A collateral loan broker purchasing articles from the general public
shall display, in a conspicuous place in his or her shop, a sign stating:
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PURSUANT TO ARTICLE 5 OF THE NEW YORK STATE GENERAL BUSINESS
LAW, A COLLATERAL LOAN BROKER IS AUTHORIZED TO PROVIDE LOANS ON ITEMS
PLEDGED OR PURCHASE ITEMS OFFERED FOR SALE. YOU HAVE THE RIGHT TO
USE AN ITEM AS COLLATERAL FOR A LOAN OR SELL THE ITEM IN ACCORDANCE
WITH STATE AND LOCAL LAW. ALL SALES MAY BE CANCELED WITHIN FIVE BUSINESS
DAYS IN ACCORDANCE WITH SAID ARTICLE 5. A SALE OF JEWELRY, WATCHES,
PRECIOUS STONES, PRECIOUS METALS OR COINS CAN BE CONVERTED TO A LOAN
WITHIN 14 DAYS FROM THE DATE OF THE SALE.
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(2)
Such sign shall be made of a durable material, with letters being
at least one inch high and having a stroke of at least 1/4 inch. The
letters and background shall be of contrasting colors.
F.
Each
license is personal to the licensee. It does not go with title to
the land, nor may it be sold, assigned, transferred or disposed of.
G.
Application
for license. Applicants for a license under this chapter must file
an application with the Town Clerk of the Town of Islip, supplied
by the Town Clerk, containing the following information:
(1)
The name and description of the applicant. Individuals operating
under a trade name must present a certified copy of the trade name
certificate filed in the Suffolk County Clerk's office. A partnership
conducting business, whether or not under a trade name, must submit
a certified copy of the partnership certificate filed in the Suffolk
County Clerk's office when the partnership was formed. A corporation
must furnish a copy of the filing receipt for the certificate of incorporation
from the New York State Secretary of State. A corporation from outside
New York State must furnish a copy of its application for authority
to do business in New York State from the New York State Secretary
of State.
(2)
The address of the applicant (local and legal).
(3)
That the applicant is of legal age.
(4)
That the applicant is a citizen of the United States, whether by
birth or naturalization, or an alien lawfully admitted for permanent
residence in the United States; if by naturalization, the date and
place where obtained. The naturalization certificate or permanent
Board of Elections personal registration card may be used as proof
of citizenship.
(5)
A statement as to whether or not the applicant has ever been convicted
of or is now under charge of any crime, misdemeanor or violation of
any municipal ordinance, the nature of the offense and the punishment
or penalty assessed therefor, and such other facts or evidence as
is deemed necessary to establish that the applicant is a person fit
and capable of properly conducting the activity or business for which
the license is sought.
(6)
A description of the exact type of business the applicant intends
to conduct.
(7)
The name and address of the owner or owners of the land and the nature
of the right of occupancy of the applicant to the use of such land.
(8)
Two photographs of the applicant taken not more than 60 days prior
to the filing of the application. Said photographs shall be two inches
by two inches, showing the head and shoulders of the applicant in
a clear and distinguishing manner. Two photographs and fingerprints
are required of each individual applicant: two photographs and fingerprints
are required of each partner; no photographs are required of corporate
applicants, but all officers must be fingerprinted, as well as any
stockholder of 10% or more of the stock.
(9)
If the applicant is a corporation, the name and address upon whom
process or other legal notice may be served.
(10)
A copy of the applicant's fingerprints shall be mailed to the
New York State Division of Criminal Justice Services, Albany, New
York, requesting a fingerprint search. The Town Clerk shall secure
from the applicant the required fee in the form of a postal money
order made payable to the New York State Division of Criminal Justice
Services.
H.
Issuance
of license.
(1)
Upon receipt of the license application and upon the approval by
the Town Clerk of the Town of Islip and the payment of the prescribed
fees and bonds required of the applicant, the Town Clerk shall prepare
and deliver said license to the applicant.
(2)
Every license issued hereunder shall be signed at the direction and
in the name of the Town Clerk and sealed with the Seal of the Town
of Islip.
(3)
The Town Clerk shall keep a record of all licenses issued, as well
as any other matters herein described.
(4)
No license shall be granted under this chapter to any collateral
loan broker:
(a)
Who has been convicted of any offense which, under the laws of the
State of New York, constitutes a crime involving moral turpitude.
(b)
Who has been found by any court of the state to have practiced any
fraud, deceit or misrepresentation in the conduct of the collateral
loan broker business unless the Town Clerk, after Town Board approval,
shall decide in any particular case upon the facts there presented
that it is proper to issue the license applied for.
(c)
Whose license under this chapter has been revoked at any time during
the year prior to the time of the application for the license.
Any collateral loan broker engaged in the purchase or sale of
secondhand articles shall comply with § 47 of Article 5
of the New York State General Business Law.
In interpreting and applying the provisions of this chapter,
the rule of interpretation applicable to remedial legislation shall
be used so that the spirit and intent of this chapter shall be observed.
All provisions shall be:
This chapter shall not create any liability on the part of the
Town of Islip, its officers, agents or employees, or the Suffolk County
Police Department, its officers, agents or employees, for any act
or damage caused as a result of reliance on this chapter or any administrative
decision lawfully made thereunder.
Any collateral loan broker business shall be permitted to operate
in the Town of Islip only so long as it shall be and continues to
be in compliance with all requirements of Article 5 of the General
Business Law as well as all other applicable requirements of law.
A.
Except
as otherwise expressly proved, and in addition to any other remedy
for an offense against this chapter, any person committing an offense
against this chapter or any section or provision thereof or failing
to comply therewith shall be guilty of a violation punishable by a
fine of not less than $50 nor more than $250.
B.
Pursuant
to § 51 of Article 5 of the General Business Law of the
State of New York, the Town Clerk of the Town of Islip, after a hearing,
shall have full power and authority to take appropriate action, including,
without limitation, the suspension or revocation of any license previously
issued and the imposition of the maximum fines and penalties upon
any person violating any provisions of that article and/or of this
chapter.
Where the requirements of this chapter impose a different restriction
or requirement than imposed by other sections of the Code of the Town
of Islip, the Town Law of the State of New York or other applicable
rules or regulations, the requirements of this chapter shall prevail.
The invalidity of any word, section, clause, paragraph, sentence,
part or provision of this chapter shall not affect the validity of
any other part of this chapter, which can be given effect without
such invalid part or parts.
