[HISTORY: Adopted by the Board of Trustees of the Village of Freeport 5-9-1966 by Art. III of Ch. 14 of the 1966 Code. Amendments noted where applicable.]
No person shall engage in business as a pawnbroker without first obtaining an annual license therefor.
Every applicant hereunder shall file with the Village Clerk, prior to the delivery of a license, a surety bond executed by the person so licensed and issued by an acceptable surety company, in form approved by the Village Counsel, in an amount of $10,000 and conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed as set forth by ordinance and by the laws of the State of New York.
Such bond shall provide that action thereon may be brought by any person to whom a judgment has been awarded because of loss caused by such licensee's fault or default.
The license fee to be charged for carrying on the business shall be $250 for each year ending on the first day of May or the fraction of any year during which the licensed business is carried on.
Contents. Every such pawnbroker shall keep a book in which shall be fairly written, at the time of such 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 said goods, articles or things.
Accessibility. Such book shall be open at all reasonable times to the inspection of the Mayor, the Chairman of the Board of Police Commissioners or any person who shall be duly authorized in writing for that purpose by any or either of them and who shall exhibit such written authority to such pawnbroker.
No pawnbroker shall ask, demand or receive any greater rate of interest than 3% per month or fraction of a month for the first six months and 2% per month for each succeeding month upon any part of a loan not exceeding $100 or than 2% per month or fraction of a month for the six months and 1% per month or any fraction of a month for each succeeding month on any part of any loan in excess of $100. A minimum interest charge of $0.25 per month may be made on any loan. No pawnbroker shall receive or be entitled to any interest or charges on any such loan for any period of time exceeding 15 months from the date of the making of such loan.
Restriction. No pawnbroker shall sell any pawn or pledge until the same shall have remained six months in his possession, and all such sales shall be at public auction and not otherwise and shall be conducted by an auctioneer licensed by the Village.
Disposition of surplus money. The surplus money, if any, arising from any such 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 pawnbroker to the person who would be entitled to redeem the pledge in case no such sale had taken place.