[HISTORY: Adopted by the Town Board of the Town of Oyster Bay 3-31-2009 by L.L. No. 3-2009. 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 set up a procedure by which the Office of the Town Clerk can issue said licenses.
As used in this chapter, the following terms shall have the meanings indicated:
- COLLATERAL LOAN BROKERS
- 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 § 53 of the General Business Law, a copy of the collateral loan broker's registration statement shall be filed with the Town Clerk of the Town of Oyster Bay prior to the establishment of any premises as a collateral loan broker business.
Pursuant to Article 5 of the New York State General Business Law, and in conformance with the provisions of this chapter as well as the procedures established in Chapter 147 of the Code of the Town of Oyster Bay, a license shall be obtained from the Town Clerk prior to the commencement of any collateral loan broker business in the Town of Oyster Bay. 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.
No person, corporation, partnership, firm or association shall carry on the business of collateral loan broker within the Town of Oyster Bay without first obtaining a collateral loan broker license.
Bonds; fees; conditions. Each collateral loan broker shall furnish a bond to the Town of Oyster Bay, 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.
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.
A collateral loan broker purchasing articles from the general public shall display, in a conspicuous place in his or her shop, a sign stating:
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.
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.
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.
Application for license. Applicants for a license under this chapter must file an application with the Town Clerk of the Town of Oyster Bay, supplied by the Town Clerk, containing the following information:
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 Nassau 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 Nassau 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.
The address of the applicant (local and legal).
That the applicant is of legal age.
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.
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 therefore, 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.
A description of the exact type of business the applicant intends to conduct.
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.
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.
If the applicant is a corporation, the name and address upon whom process or other legal notice may be served.
A copy of the applicant's fingerprints shall be mailed to the 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.
Issuance of license.
Upon receipt of the license application and upon the approval by the Town Clerk of the Town of Oyster Bay 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.
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 Oyster Bay.
The Town Clerk shall keep a record of all licenses issued, as well as any other matters herein described.
No license shall be granted under this chapter to any collateral loan broker:
Who has been convicted of any offense which, under the laws of the State of New York, constitutes a crime involving moral turpitude.
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.
Whose license under this chapter has been revoked at any time during the year prior to the time of the application for the license.
Whose license has been suspended under this chapter, and the period of such suspension has not expired at the time of this 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 and Chapter 192 of the Code of the Town of Oyster Bay.
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 Oyster Bay, its officers, agents or employees, or the Nassau County Police Department, its officers, agents or employees, for any act or damage caused as a result from 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 Oyster Bay 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.
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.
Pursuant to § 51 of Article 5 of the General Business Law of the State of New York, the Town Clerk of the Town of Oyster Bay, 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 Oyster Bay, 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.