[HISTORY: Adopted by the Town Board of the Town of Wappinger 5-11-2009 by L.L. No. 6-2009. Amendments noted where applicable.]
The purpose of this chapter is to promote the health, safety and general welfare of the people of the Town of Wappinger, New York, and to protect and preserve property values by imposing requirements that insure that collateral loan brokerage businesses are operated by citizens of good character and are located in such zoning districts as may be designated by the Town Board as appropriate for such activities. Collateral loan brokers are commonly called "pawnbrokers."
This chapter is enacted pursuant to the authority granted to the Town by Article 5 of the General Business Law concerning collateral loan brokers and by Article 9 of the Town Law concerning ordinances and licenses.
It shall be unlawful for any person, corporation, partnership or other business entity to conduct or carry on the business of collateral loan broker unless a license therefor has been duly issued as herein provided.
It shall be unlawful for any person, corporation, partnership or other business entity to conduct or carry on the business of collateral loan broker at any location other than that specified in the license issued by the Town of Wappinger.
Only a person duly licensed as a collateral loan broker pursuant to this chapter shall be permitted to use the phrase "pawnbroker" in connection with the collateral loan business.
Pursuant to the authority conferred by General Business Law Article 5, § 41, the Town Clerk of the Town of Wappinger is hereby authorized to grant, under his or her hand and the seal of the office, to such citizen or citizens, or aliens lawfully admitted for permanent residence in the United States, as he or she shall deem proper, and who shall produce to him or her satisfactory evidence of their good character, a license to carry on the business of collateral loan broker, provided that such citizen or citizens or lawful aliens desiring said license shall make application for said license to said Town Clerk, submitting the required information, in writing and under affidavit, together with the license fee required by the Town fee schedule set forth at § 122-16.
Every person who wishes to engage in business as a collateral loan broker must make written application, under oath, on such forms as the Town Clerk shall provide, which shall contain the following information:
The name, age and address of the applicant, specifying, in the case of any unincorporated association, the names, ages and addresses of each member thereof and, in the case of any business entity, the names, ages and addresses of each officer or member thereof.
If the applicant shall employ more than three employees, the applicant shall designate one individual as the manager of the collateral loan broker business in accordance with General Business Law § 41-a.
All crimes, if any, of which the applicant or any member thereof has been convicted and, if an unincorporated association, of which any officer thereof has been convicted, stating the name, if any, and location of the courts and the dates on which such convictions were had and the penalties imposed therefor.
The experience of the applicant as a collateral loan broker, if any.
The address of the place from which the collateral loan brokerage business shall be conducted.
The applicant must demonstrate that it owns, leases or subleases its business premises by providing a deed, if the applicant owns such premises, or by providing a copy of the lease or sublease agreement if the applicant leases or subleases such premises.
Every applicant shall submit a complete current schedule of fees for all services. The schedule of prices to be charged may be revised at any time but shall not be effective until filed with the Town Clerk.
Consent in writing that the applicant authorizes the Town to make a request for the applicant's criminal history record from the New York State Division of Criminal Justice Services (DCJS), or approved private company, upon a form prescribed by the Town.
Two sets of fingerprint cards for all applicants, prepared by the state police, the Dutchess County Sheriffs Department or other entity approved by the Town Clerk to perform fingerprinting for identification processing.
Any other relevant information that the Town Clerk may deem necessary.
The Town Clerk, or his or her designee, shall forward the applicant's fingerprint cards and all applicable fees to DCJS.
The criminal history records processed by DCJS shall be submitted to the Town Clerk, or his or her designee, for review and consideration of the contents of those records.
If the information received indicates that there is a pending criminal offense that would require a disqualification, the applicant shall forward documentation to the Town Clerk evidencing the disposition of such offense in accordance with the procedures established by the Town Clerk.
Upon a determination of disqualification, the Town Clerk or his or her designee shall notify the applicant. Said notice to the applicant shall include information regarding the right to appeal and contest any claimed ground for disqualification in accordance with the procedures established by the Town Clerk. My challenge to information contained in criminal records provided by DCJS shall be conducted in accordance with the applicable DCJS rules and regulations.
Upon certification by the Town Clerk that the applicant has complied with all applicable provisions of law, and upon payment of the prescribed fee, the Town Clerk, or his or her agent, shall notify the applicant that the application has been approved. Such notification shall inform the applicant that in order to receive a license an acceptable bond, as required by § 99-7, is required to be posted.
Upon receipt of a bond in acceptable form, and provided that the application has been approved, the Town Clerk shall issue a license to conduct business as a collateral loan broker.
All licenses shall be issued for a period of one year and may be renewed annually in accordance with the provisions of this chapter.
No license issued hereunder may be transferred.
If the Town Clerk shall deny any application for a license, such denial shall be in writing and state the reasons therefor. Any applicant who shall be denied a license shall have the right to appeal such denial to the Town Board at its next regular meeting. A decision of the Town Board to approve or deny such an application after an appeal to it shall be in writing and entered into the Town Clerk's minutes. Such decision shall be final.
An approved applicant shall, at the time of receiving such license, file with the Town Clerk a bond payable to the Town of Wappinger, to be executed by the person so licensed and by two responsible sureties, in the penal sum of $10,000. Said bond is subject to the approval of the Town Clerk. This bond shall be conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed and the observance of all laws and ordinances relating thereto.
An action on the bond may be instituted by any person aggrieved pursuant to General Business Law § 42.
No premises in which the business of a collateral loan broker is conducted, either alone or in connection with some other business, in the Town of Wappinger shall be open except between the hours of 9:00 a.m. and 7:00 p.m., Monday through Saturday.
Collateral loan brokers shall be permitted to operate only in such zoning districts as permitted by Chapter 240 of the Code.
A collateral loan broker shall comply with all the provisions of Article 5 of the General Business Law as well as all rules and regulations promulgated by the State Comptroller pursuant to General Business Law § 55 and all applicable provisions of the Town of Wappinger Code.
Every collateral loan broker so licensed as hereinbefore provided 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.
The collateral loan broker shall, at the time of each loan, deliver to the person pawning or pledging any goods, articles or things, a memorandum or note signed by him, containing the substance of the entry required to be made in his book, as in this section provided, and no charge shall be made or received by any collateral loan broker for any such entry, memorandum or note.
Said book shall, at all reasonable times, be open to inspection by the Town Clerk, the state police, the Dutchess County Sheriff's Department and all other parties authorized by General Business Law § 45.
Interest rates and other fees charged shall be such as will be allowed under Article 5 of the General Business Law of the State of New York.
Notice of every such sale shall be published for at least six days previous thereto in the official newspaper or newspapers printed in the Town of Wappinger, and each such notice shall specify the time and place at which such sale shall take place, the name of the auctioneer by whom the same is to be conducted and a general description of the kind of article to be sold, together with a statement of the inclusive dates of the pawn tickets representing the pledges to be sold.
Any person, including the collateral loan broker, may become the purchaser of any or all goods, articles or things to be sold at any such sale.
The surplus money, if any, arising from the sale of each article or thing at such sale, after deducting the amount loaned therefor, the interest due thereon and the expenses of the advertising and sale apportionable thereto, shall be paid over by the collateral loan broker to the person who would have been entitled to redeem the same in the event such sale had not taken place.
All collateral loan brokers shall comply with the continuing education requirements of General Business Law § 41-a, and proof of such compliance shall be filed with the Town Clerk.
No license issued under this chapter shall be renewed unless the continuing education requirements have been completed.
The Town Clerk, the Building Inspector, the Code Enforcement Officers, the Zoning Administrator and any police officer or peace officer as defined in the New York State Criminal Procedure Law shall have the authority to enforce the provisions of this chapter.
A violation of any provision of this chapter shall be deemed an offense punishable by:
Pursuant to General Business Law § 51, the Town Clerk shall have full power and authority after notice and a hearing before the Town Board to impose fines and penalties of not less than $25 nor more than $100 upon persons offending against any of the provisions of General Business Law Article 5, §§ 42 through 50, and may also suspend or revoke the license of the collateral loan broker willfully violating any of the aforesaid provisions.
Any license issued pursuant to this chapter may be revoked by the Town Clerk due to a violation of this chapter or Article 5 of the General Business Law, after written notice and an opportunity to be heard.