[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:
Any person, partnership or corporation:
Loaning money on deposit or pledge of personal property, other
than securities or printed evidences of indebtedness; or
Dealing in the purchasing of personal property on condition
of selling it back at a stipulated price; or
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.
A.
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.
B.
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.
C.
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.
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:
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 Oyster
Bay, 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 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.
(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 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.
(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 duly submitted
to the New York State Division of Criminal Justice Services. Any fees
required for fingerprinting shall be the responsibility of the applicant.
[Amended 6-29-2021 by L.L. No. 12-2021]
H.
Issuance of license.
(1)
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.
(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 Oyster Bay.
I.
Grounds for denial.
[Added 6-29-2021 by L.L.
No. 12-2021]
(1)
The Town Clerk may deny a license or permit sought to be issued pursuant
to this chapter, if he shall find that the requirements governing
the issuance of the license or permit, as prescribed either by this
chapter or the provisions of this Code or other ordinance rule or
regulation requiring the license or permit, or the issuance of the
license or permit or the issuance thereof have not been sufficiently
complied with by the applicant.
(2)
In addition to the provisions of Subsection I(1), the Town Clerk may deny a license or permit for the following reasons:
(a)
If the applicant, or if the applicant is a firm or corporation,
any of its members or officers or the person designated to manage
or supervise the business, shall have been convicted of a misdemeanor
or felony, which in the judgment of the Town Clerk renders the applicant
unfit or undesirable to carry on the trade or occupation involved.
Any decision regarding such applicant's fitness for a license
must be made upon a review of the factors contained in New York State
Correction Law §§ 701 through 703-b and 751 through
753; or
(b)
If the applicant, in the judgment of the Town Clerk, is deemed
to be an undesirable person or incapable of properly conducting the
activity, trade or business of a collateral loan broker.
(c)
If the applicant 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.
(d)
If the applicant's license issued under this chapter has
been revoked at any time during the year prior to the time of the
application for the license.
(e)
If the applicant's license which has been issued pursuant
to this chapter has been suspended, 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.
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 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.