[HISTORY: Adopted by the Board of Trustees of the Village
of Lynbrook 6-23-2014 by L.L. No. 12-2014. 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 establish a procedure
by which the Office of the Village Clerk may 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 General Business Law § 53, a copy of
the collateral loan broker's registration statement shall be
filed with the Village Clerk of the Village of Lynbrook 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, a license
shall be obtained from the Village Clerk prior to the establishment
of any collateral loan broker business in the Village of Lynbrook.
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 a collateral loan broker within the Village of
Lynbrook without first obtaining a collateral loan broker license.
C.
Bonds; fees; conditions. Each collateral loan broker shall furnish
a bond to the Village of Lynbrook, 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."
(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. If the applicant is a corporation, the principal
operating officer of the corporation shall complete the application
with responsive information about himself or herself. Applicants for
a license under this chapter must file an application with the Village
Clerk of the Village of Lynbrook, supplied by the Village 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 therefor, 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; all corporate 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 mailed
to the New York State Division of Criminal Justice Services, Albany,
New York, requesting a fingerprint search. The Village Clerk shall
secure from the applicant the required fee in the form of a bank check
or postal money order made payable to the New York State Division
of Criminal Justice Services. The applicant shall appear at the office
of the Lynbrook Chief of Police for fingerprint arrangements.
H.
Issuance of license.
(1)
Upon receipt of the license application and upon the approval by
the Village Clerk of the and the payment of the prescribed fees and
bonds required of the applicant, the Village 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 Village Clerk.
(3)
The Village Clerk shall keep a record of all licenses issued, as
well as any other matters herein described.
(4)
No license shall be granted under this chapter to any collateral
loan broker:
(a)
Who has been convicted of any offense which, under the laws
of the State of New York, constitutes a crime involving moral turpitude.
(b)
Who 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 Village Clerk, after Village Board
approval, shall decide in any particular case upon the facts there
presented that it is proper to issue the license applied for.
(c)
Whose license under this chapter has been revoked at any time
during the year prior to the time of the current application for the
license.
(5)
Should an applicant be found in violation of any provision of § 100-4H(4)(a) through (c) above subsequent to the issuance of a license hereunder, the Village Clerk shall review the facts and circumstances of such violation and shall determine whether the said license should be suspended or revoked pursuant to § 100-10 herein.
A.
A collateral loan broker shall maintain books and make entries therein
as prescribed in General Business Law § 43.
B.
Such broker will provide to the person pawning or pledging goods
a memorandum pursuant to General Business Law § 44.
C.
Such books as described in Subsection A above shall be open to inspection pursuant to General Business Law § 45. In addition, such books shall be made immediately available to any Police Officer of the Lynbrook Police Department or the Nassau County Police Department for inspection upon demand during normal business hours.
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.
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
Village of Lynbrook, its officers, agents or employees for any act
or damage caused as a result of reliance on this chapter or any administrative
decision lawfully made thereunder.
Any collateral loan broker business shall be permitted to operate in the Village of Lynbrook only so long as it shall be and continues to be in compliance with all requirements of Article 5 of the General Business Law, this chapter, as well as all other applicable requirements of law. The Village Clerk shall review of the facts and circumstances of any failure of compliance and shall determine whether the license issued hereunder is to be suspended or revoked pursuant to § 100-10 herein.
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 Village Clerk of the Village of Lynbrook,
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. In the conduct of the hearing, the
formal rules of evidence shall not apply; however, a stenographic
record must be kept and all documents admitted into evidence must
be marked and preserved for review upon appeal.
C.
A licensee whose license has been suspended or revoked may appeal
to the Village Board of Trustees. In determining such appeal, the
only issue for determination by the Village Board will be whether
or not the proof as adduced at the hearing before the Village Clerk
established the fact of a violation.
