In addition to the requirements of this article, all pawnbrokers,
including secondhand dealers who also operate as pawnbrokers or undertake
any action or conduct which includes the business of a pawnbroker
as defined in the Pawnbroking Law, shall comply with all applicable
provisions of this chapter and with all provisions of the Pawnbroking
Law. In addition, all pawnbrokers licensed by the Department of Banking
and Insurance shall provide the Township Clerk evidence of such licensure
and compliance with the Department's rules and regulations in
the form and manner required in this chapter.
The operation of a pawnbroker, pawn shop or pawnbroking business
shall be subject to the requirements of the Pawnbroking Law, including
without limitation the following:
A. Prohibited transactions.
(1) A pawnbroker shall not accept a pledge from any person who is under
the age of 16.
(2) No pawnbroker, his agent or attorney, shall receive, by way of pledge or pawn, from any person any mechanic's tools used in the erection, addition or alteration of any building or structure, unless said person produces before said pawnbroker, his agent or attorney, two reputable citizens who reside in the county in which the pawnbroker is doing business, and who shall respectively subscribe to an affidavit containing the name, residence and occupation of such affiant, and setting forth that said affiant verily believes that the person desiring to pledge said mechanic's tools is the true owner thereof. Every such affidavit shall be kept on file by the pawnbroker and a note thereof made in his books, as described in §
174-23B(1) of this article, and shall be subject to the same inspection as his books, and the pawnbroker shall furnish without charge a true copy of said affidavit to each person making the same. A pawnbroker who violates any of the provisions of this section shall be guilty of a misdemeanor.
B. Records of pawnbrokers.
(1) Every pawnbroker shall maintain and keep the information described
below in separate books, written in the English language, as follows:
(a)
A pawnbroker shall keep a book in which shall be recorded, in
ink, at the time of making each loan the following:
[1]
The name and address of the pledgor, or where the pledge is
made by a person acting as agent for a disclosed principal, the names
and addresses of principal and agent;
[2]
The date of the transaction;
[4]
The article or articles pledged;
[5]
The serial number of the loan; and
[6]
If the article or articles pledged include mechanic's tools, a notation indicating receipt of an affidavit in the form required by §
174-23A(2) and a description of the location in which the pawnbroker keeps the affidavit.
(b)
A pawnbroker shall keep in a book which shall be recorded, in
ink, all sales of unredeemed pledges, including the following with
respect to each sale:
[1]
Number, date, amount and duration of each loan;
[3]
The amount realized from the sale of the collateral;
[4]
The amount charged to the pledgor as interest;
[5]
Commission and expenses of the sale;
[6]
The amount of the surplus or deficit, as the case may be; and
[7]
The date on which and the person to whom the surplus, if any,
was paid.
(c)
A pawnbroker shall keep a cash book, which the pawnbroker shall
balance daily, in which shall be recorded:
[1]
Each amount paid out and the purpose for which it was paid;
and
[2]
Each amount received and on what account it was received.
(d)
A pawnbroker shall keep a general ledger book.
(2) The pawnbroker shall at the time of making a loan require the pledgor or his agent to write his signature and address on a card bearing the serial number of the loan corresponding to that recorded in the pawnbroker's book, as provided in §
174-23B(1)(a) of this article. If such person is unable to write, he shall sign by mark, and in such event the pawnbroker shall record on the signature card such information as will enable him to identify the person in case of the loss of the ticket.
(3) The pawnbroker shall maintain its records on the licensed premises
for a period of five years and shall make such records available to
the Haddon Township Police Department for inspection, with or without
notice, during normal business hours in the manner as otherwise set
forth in this chapter; provided, however, that no records shall be
removed or destroyed within two years of the date of the last entry
thereon or therein.
C. Pledgor's ticket required; contents of pledgor's ticket.
The pawnbroker shall, at such time, deliver to the pledgor or his
agent a memorandum or ticket on which shall be legibly written or
printed the following:
(2) The name of the pawnbroker;
(3) The place where the pledge is made;
(4) The article or articles pledged;
(6) The date of the transaction;
(7) The serial number of the loan;
(9) A copy of N.J.S.A. 45:22-22 and N.J.S.A. 45:22-24; and
(10)
Any other terms and conditions of the transaction not inconsistent
with the Pawnbroking Law; provided, however, that nothing appearing
on a pawn ticket shall relieve the pawnbroker of the obligation to
exercise reasonable care in the safe-keeping of articles pledged with
him as otherwise provided in the Pawnbroking Law.
D. Redemption of pledgor's ticket.
(1) The holder of a pledgor's ticket shall be presumed to be the
person entitled to redeem the pledge and the pawnbroker shall deliver
the pledge to the person presenting the ticket upon payment of principal
and interest. The holder of a pledgor's ticket may redeem by
mail in accordance with the provisions of N.J.S.A. 45:22-17.
(2) A pawnbroker when requested for a receipt at the time of redemption,
renewal or reduction of a loan, shall furnish to the person redeeming,
renewing or reducing the loan, a receipt setting forth the following:
(a)
The name and address of the pawnbroker;
(b)
The date and number of the pledge;
(c)
The amount of principal and interest; and
(d)
The date of the payment for redemption, renewal or reduction
of the loan.
(3) All unredeemed pledges shall be sold at public auction or private
sale, but not before the expiration of 12 months from the date of
the loan, unless otherwise agreed in writing between the pawnbroker
and the pledgor, or unless authorized by the Commissioner of Banking
and Insurance for due cause shown. A public auction or private sale
under this section shall not take place before a notice in writing
shall have first been mailed, subsequent to the date of maturity of
the loan, to the last known address of the pledgor. Said written notice
shall be mailed at least 20 days prior to the date of such public
auction or private sale. The disposition of the proceeds of a public
auction or private sale under this section shall be distributed only
in the manner and order set forth in N.J.S.A. 45:22-27 and 45:22-28.
(4) Except as otherwise provided in the Pawnbroking Law, a pawnbroker
shall not be required, by legal process or otherwise, to deliver a
pledge except upon surrender of the ticket, unless the ticket be impounded
or its negotiation enjoined by a court of competent jurisdiction,
such as, but not limited to, circumstances described in N.J.S.A. 45:22-30.
E. Lost, destroyed, stolen, altered and spurious tickets. The following shall apply to all tickets issued in accordance with §
174-23C:
(1) If the ticket is lost, destroyed or stolen, the pledgor shall so
notify the pawnbroker in writing. The receipt of such notice shall
be treated by the pawnbroker as a stop against the loan. Before delivering
the collateral or issuing a new ticket, the pledgor shall provide
the pawnbroker with an affidavit detailing the alleged loss, destruction
or theft of the ticket. Upon receipt of such affidavit, the pawnbroker
shall permit the pledgor either to redeem the loan or to receive a
new ticket upon the payment of accrued interest. Nothing herein shall
be construed as a waiver of any other requirements or provisions of
the Pawnbroking Law with respect to lost, destroyed or stolen tickets.
(2) If the ticket is altered, the pawnbroker shall not be excused from
liability to deliver the pledge according to the terms of the ticket
as originally issued; however, the pawnproker shall be relieved of
any other liability to the pledgor or holder of the ticket.
(3) If a ticket is presented to a pawnbroker which purports to be one
issued by said pawnbroker, but which is found to be spurious, the
pawnbroker may seize and retain same without any liability whatsoever
to the holder thereof. Any such tickets so seized shall be delivered
to the Commissioner of the Department of Banking and Insurance and
a copy thereof shall be delivered to the Chief of Police of the Township
of Haddon or his designated representative.
(4) A licensee may charge a fee for services provided in connection with
a lost, stolen or destroyed ticket; provided, however, that the charged
amount does not exceed the maximum amount set forth in the Pawnbroking
Law.
F. Actions on loan issued by pawnbroker.
(1) Upon presentation of a ticket, and tender of not less than $5 as
an installment on the principal together with accrued interest, the
pawnbroker shall accept the same and issue a new ticket for the reduced
amount.
(2) A pawnbroker shall not charge or receive interest on a loan in excess
of the percentage established by the Pawnbroking Law except that a
pawnbroker may charge $1 where the interest thereunder amounts to
less. In no event shall any other charges be made for any reason whatsoever
except as may be permitted and/or determined by the Commissioner of
the Department of Banking and Insurance.
(3) On loans secured by the pledge of articles, a licensee may levy a
service charge equal to the amount established in, but not to exceed
the amount set forth in, the Pawnbroking Law. The service charge shall
not be levied on the renewal of a pledge more than once during any
twelve-month period following the date of the initial pledge. A licensee
shall levy a service charge only with the knowledge and consent of
the pledgor.
G. Advertising.
(1) No licensee shall make, publish, disseminate, circulate or place
before the public, or cause directly or indirectly to be made, published,
disseminated, circulated, or placed before the public, in a newspaper,
magazine or other publication, or in the form of a notice, circular,
pamphlet, letter or poster, or over any radio or television station,
computer modem, or in any other way, an advertisement, announcement
or statement containing any assertion, representation or statement
which is inaccurate, untrue, deceptive or misleading.
(2) A licensee is prohibited from using on his stationary, records, forms
literature or advertising the words "bank" or "banking" or any other
words which might imply that the licensee is a bank or is engaged
in a banking business.
(3) An advertisement for public auction of unredeemed pledges shall be
placed in three consecutive issues of a daily or weekly newspaper
of general circulation in the city or country where the pawnbroker's
business is conducted. In addition, the licensee may place advertisements
in such other publications as he or she deems appropriate. Each advertisement
shall include notice of the time and site of the public auction. Copies
of all advertisements shall be delivered to the Chief of Police of
the Haddon Township Police Department, or his designated representative,
at least 14 days prior to the advertised sale and shall be retained
for examination by the Department of Banking and Insurance.
(4) The licensee shall conspicuously post a list of items available for sale on the licensee's principal business at least three days prior to the date of public auction, and the licensee shall make the list available to members of the public upon request. In addition, the licensee shall provide the Chief of Police of the Haddon Township Police Department, or his designated representative, a copy of the list of items available for sale at the same time the licensee delivers a copy of the notice pursuant to §
174-23G(3).
H. Public auction or private sale. In addition to the notice requirement
set forth in § 174-D(3), G(3) and G(4), every public auction
or private sale conducted by a licensee shall comply with the following:
(1) A licensee shall obtain the name and address of each person who makes
a purchase as a result of a public auction or private sale. The purchasers'
names and addresses shall be retained for examination by the Haddon
Township Police Department and the Department of Banking and Insurance.
(2) A licensee shall prepare and maintain a list containing a description
of each item which the licensee acquires as a result of a public auction
or private sale of unredeemed pledges.
(3) A licensee shall allow public inspection of all unredeemed pledges
at the site of the public auction for not less than one hour prior
to commencement of the auction.
(4) A licensee shall mail a notice of public auction or private sale
to each pledgor of record of items to be sold at least 20 days prior
to the auction or sale.
On or before March 15 of each year, every pawnbroker licensed
pursuant to this chapter shall file with the Township Clerk a copy
of the annual report said pawnbroker is required to file with the
Commissioner of the Department of Banking and Insurance.
A licensee shall provide the Township Clerk with a copy of every
legal process bringing a lawsuit, claim or suit upon a surety bond,
which involves the licensee's pawnbroker business, not later
than five days after the licensee submits a copy of said documentation
to the Department of Banking and Insurance in accordance with N.J.A.C.
3:16-3.1(a). In addition, a licensee shall report to the Township
Clerk in writing the disposition of each such lawsuit, claim or suit
upon a surety bond not later than five days after the licensee submits
such information to the Department of Banking and Insurance.