[HISTORY: Adopted by the City Council of the City of Troy 3-1-1973 as Ch. 21of the 1973 Code. Amendments noted where applicable.]
The term “collateral loan broker,” as used in this chapter, shall be construed so as to include any person:
Loaning money on deposit or pledge of personal property, other than securities or printed evidences of indebtedness;
Dealing in the purchasing of personal property on condition of selling back at a stipulated price; or
Designated or doing business as furniture storage warehouse and loaning and advancing money upon goods, wares or merchandise pledged or deposited as collateral security.
If any person shall be aggrieved by the misconduct of any licensed collateral loan broker under this chapter, and shall recover judgment against him/her therefor, such person may, after the return unsatisfied either in whole or in part of any execution issued upon such judgment, maintain an action in his/her own name upon the bond of such collateral loan broker in any court having jurisdiction of the amount claimed, provided such court shall, upon application made for the purpose, grant such leave to prosecute.
Every collateral loan broker shall keep a book in which shall be fairly written, at the time of each 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 the goods, articles or things.
Every collateral loan broker shall, at the time of each loan, deliver to the person pawning or pledging any goods, article or thing, a memorandum or note signed by him/her containing the substance of the entry required by § 191-3 to be made in his/her book. No charge shall be made or received by any collateral loan broker for any such entry, memorandum or note.
The holder of the memorandum or note mentioned in § 191-4 shall be presumed to be the person entitled to redeem the pledge, and the collateral loan broker shall deliver such article to the person so presenting such memorandum or note on payment of interest and principal.
Should the ticket be lost or mislaid, the pawnor shall at once apply to the collateral loan broker to permit such person to examine his/her books, and on finding the entry for such ticket, note or memorandum so lost and upon his/her giving to the collateral loan broker an exact description of the article pawned, the collateral loan broker shall issue a second or stop ticket for the same. In case such pawnor neglects to so apply and examine such books and receive such memorandum or note in the manner above stated, the collateral loan broker will be bound to deliver the pledge to any person producing such ticket for the redemption thereof.
This chapter is not to be construed as in any manner limiting or affecting a collateral loan broker's common-law liability in cases where goods are stolen or other legal defects of title exist in the pledger.
The record book shall at all reasonable times be open to the inspection of the Mayor, all judges of the criminal courts, the Chief of Police, the police, or any person who shall be duly authorized in writing for that purpose by any of them, and who shall exhibit such written authority to the collateral loan broker.
It shall be unlawful for any collateral loan broker to ask, demand or receive any greater rate of interest than 3% per month, or any fraction of a month, for the first six months and 2% per month for each succeeding month upon any loan not exceeding the sum of $100, or than 2% per month for the first six months and 1% per month for each succeeding month on any loan exceeding the sum of $100.
It shall be unlawful for any collateral loan broker to purchase any secondhand furniture, metals, clothing or other article or thing whatever, offered to him/her as a pawn or pledge. It shall also be unlawful for any such collateral loan broker, licensed under this chapter as such, to engage in any secondhand business or to receive in pawn or as a pledge any instrument or weapon mentioned in § 265 of the Penal Law of the state.
It shall be unlawful for any collateral loan broker to sell any pawn or pledge until the same has remained four months in his/her possession. All such sales shall be at public auction and not otherwise and shall be conducted in the City.
No pledge shall be sold unless written or printed notice of intention to sell, with a statement of the article to be sold, has been first mailed by letter addressed to the pledger, at the address given at the time of pledging, at least 10 days prior to the date of sale. Notice of each such sale shall be published for at least six days previous thereto, in at least one newspaper printed in the City. Such notice shall specify the time and place at which such sale is to take place, together with a statement of the class of pledges to be sold and the inclusive dates and numbers of the pawn tickets of the pledges to be sold.
If the pledge, at a sale, shall be purchased by the collateral loan broker, the pledger shall be entitled to redeem the same within 10 days thereafter by tendering to the collateral loan broker the amount of the loan with the interest due thereon.
The surplus money, if any, arising from any 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 collateral loan broker to the person who would be entitled to redeem the pledge in case no such sale had taken place.
It shall be unlawful for any collateral loan broker to purchase, accept or receive any article or thing whatever offered to him/her as a pawn or pledge by any minor actually or apparently under the age of 21 years.
It shall be unlawful for any person to carry on the business of a collateral loan broker, within the corporate limits of the City, without having first obtained from the Mayor a license authorizing such person to carry on the same in the manner and upon the conditions stated in this chapter.
The Mayor may from time to time grant, under his/her name and the official seal of the City, to such citizens as he/she shall deem proper and who shall produce to him/her satisfactory evidences of their good character, a license authorizing such citizens to carry on the business of a collateral loan broker.
Every person licensed under this chapter shall, at the time of receiving such license, file with the Mayor granting the same a bond payable to the City, to be executed by the person so licensed and by two responsible sureties, in the penal sum of $5,000, to be approved by the Mayor. Such bond shall be conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed.
Any person receiving a license under this chapter shall pay therefor the sum of $250, for the use of the City yearly.
The license issued under this chapter shall designate the location at which the licensee shall carry on the business of a collateral loan broker.
It shall be unlawful for any person to carry on the business of a collateral loan broker without being duly licensed under this chapter or at any other location than the one designated in the license.
Every license issued under this chapter shall expire one year from the date thereof and may be renewed on application to the Mayor each and every year on payment of the fee specified in this chapter and upon performance of the other conditions contained in this chapter.
The Mayor shall have full power and authority to revoke any license issued under this chapter for cause.