Township of Winslow, NJ Pawnbrokers and Pawnbroking Businesses; Additional Requirements

No pawnbroker shall engage in the business of or operate a pawn shop or pawnbroking business without first obtaining from the Township of Winslow a license authorizing such business or operation in accordance with the provisions of this chapter and Chapter 171 of the Code of the Township of Winslow, the granting of which license shall be contingent upon the pawnbroker first obtaining from the Department of Banking and Insurance the license required by the Pawnbroking Law.

Every application for a license in accordance with this Article shall contain, in addition to all of the information and documentation required by § 192-6A of Article II of this chapter and the information required in Chapter 171 of the Code of the Township of Winslow, the following additional items:

(a)

A copy of the policies of insurance which the pawnbroker is required to maintain in accordance with N.J.S.A. 45:22-5 and N.J.A.C. 3:16-1.5; and

(b)

A copy of the bond which the pawnbroker is required to maintain in accordance with N.J.S.A. 45:22-7 and N.J.A.C. 3:16-1.4.

For purposes of this Article, the pawnbroker's submission of a valid and current license issued by the Department of Banking and Insurance in accordance with the Pawnbroking Law, as required by § 192-6A(6) of this chapter, shall constitute conclusive proof of satisfaction of the elements of § 192-6C(1) through § 192-6C(4), inclusive, such that upon receipt to the satisfaction of the Township Clerk of all other information and documentation required by § 192-6A and § 192-22A(2), the Township Clerk shall be required to issue the license contemplated by this Article.

The contents of any license issued pursuant to this Article shall comply with the provisions of § 192-6D of Article II of this chapter.

(5)

The term of a license issued pursuant to this Article shall correspond with the term of the license the pawnbroker obtained from the Department of Banking and Insurance as set forth in N.J.S.A. 45:22-4. No application for renewal shall be approved unless the pawnbroker seeking renewal provides a copy of a renewed and valid license issued by the Department of Banking and Insurance. An application for a license or a renewal thereof shall be denied if the Department of Banking and Insurance denies the pawnbroker's license application or denies the pawnbroker's application for a license renewal submitted to that agency. It is the express intent of this section that applications for a license or renewal of a license issued pursuant to this Article shall be contingent upon the grant of or renewal of a license issued by the Department of Banking and Insurance upon which the pawnbroker's application with the township is based.

(6)

The Township Clerk shall maintain a book for the purpose of recording and keeping track of all licenses issued in accordance with this Article. The book required to be maintained by this section shall contain all of the information required by, and shall be maintained in the same manner set forth in § 192-10 of Article III of this chapter; provided, however, that the book required by this section shall be labeled "Licenses — Pawnbrokers and Pawn Shops," and shall be maintained separately from the book required to be maintained under § 192-10.

(7)

The provisions of § 192-13 and § 192-14 of this chapter, prohibiting transfers of licenses and requiring a zoning permit or zoning variance in order to conduct the business contemplated by this chapter, shall apply to licenses issued pursuant to this Article.

(8)

This Article shall apply to all pawnbrokers, pawn shops and pawnbroking businesses without exception.

Revocation. The status of any license issued by the Township of Winslow pursuant to this Article shall be subject to and contingent upon a licensed pawnbroker maintaining a current and valid license from the Department of Banking and Insurance. It is the express intent of this section that the revocation of a license issued pursuant to the Pawnbroking Law by the Department of Banking and Insurance shall constitute grounds for an immediate revocation of the corresponding license issued by the Township of Winslow in accordance with § 192-9 of this chapter.

Posting. Every license issued pursuant to this Article shall be posted by the pawnbroker in a conspicuous place on the premises for which the license was issued along with the pawnbroker's schedule of fees to be charged. Pursuant to N.J.A.C. 3:16-1.3, the fee schedule shall be printed in bold type, in both English and Spanish, except where the Department of Banking and Insurance deems it necessary that a different or additional language be used.

Location of pawn shop; change of location.

A license issued pursuant to this Article shall entitle the pawnbroker who holds the license to operate a pawn shop or pawnbroking business only at the location identified on the license. No pawnbroker may operate a pawn shop or pawnbroking business at a location other than the location identified on the pawnbroker's license. A separate license shall be required for each location at which a pawnbroker intends to operate a pawn shop or conduct a pawnbroking business.

A pawnbroker who holds a license issued pursuant to this Article shall apply to the Township Clerk for an amended license for any proposed change in location of the pawn shop or pawnbroking business as that location is identified on a valid and current license issued pursuant to this Article. The application required by this section shall be submitted at least thirty (30) days before the change in location is to take effect. Upon receipt of the application required by this section, the Zoning Official shall undertake the investigation required by § 171-3 of the Code of the Township of Winslow and shall report his/her findings to the Township Committee which shall then decide on granting or denying the application in the same manner required by § 171-3.

An application fee of fifty dollars ($50.) shall be paid to the Township Clerk upon submission of an application for an amended license pursuant to this section.

Notwithstanding anything in this section to the contrary, an amended license shall not be issued if the pawnbroker is in violation of any other section of this Article or any other federal, state or local laws, rules or regulations.

§ 192-23 Operations of pawnbrokers.

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:

Prohibited transactions.

A pawnbroker shall not accept a pledge from any person who is under the age of sixteen (16).

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 (2) 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 § 192-23B(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.

Records of pawnbrokers.

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:

(i)

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;

(ii)

The date of the transaction;

(iii)

Amount of the loan;

(iv)

The article or articles pledged;

(v)

The serial number of the loan; and

(vi)

If the article or articles pledged include mechanic's tools, a notation indicating receipt of an affidavit in the form required by § 192-23A(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:

(i)

Number, date, amount and duration of each loan;

(ii)

The date of sale;

(iii)

The amount realized from the sale of the collateral;

(iv)

The amount charged to the pledgor as interest;

(v)

Commission and expenses of the sale;

(vi)

The amount of the surplus or deficit, as the case may be; and

(vii)

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:

(i)

Each amount paid out and the purpose for which it was paid; and

(ii)

Each amount received and on what account it was received.

(d)

A pawnbroker shall keep a general ledger book.

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 § 192- 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.

The pawnbroker shall maintain its records on the licensed premises for a period of five (5) years and shall make such records available to the Winslow 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 (2) years of the date of the last entry thereon or therein.

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:

The name of the pledgor;

The name of the pawnbroker;

The place where the pledge is made;

The article or articles pledged;

(5)

The amount of the loan;

(6)

The date of the transaction;

(7)

The serial number of the loan;

(8)

The rate of interest;

(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.

Redemption of pledgor's ticket.

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.

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.

All unredeemed pledges shall be sold at public auction or private sale, but not before the expiration of twelve 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 twenty (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 N.J.S.A. 45:22-28.

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.

Lost, destroyed, stolen, altered and spurious tickets. The following shall apply to all tickets issued in accordance with § 192-23C:

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.

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 pawnbroker shall be relieved of any other liability to the pledgor or holder of the ticket.

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 Winslow or his designated representative.

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.

Actions on loan issued by pawnbroker.

Upon presentation of a ticket, and tender of not less than five dollars ($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.

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 one dollar ($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.

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 (12) 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.

Advertising.

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.

A licensee is prohibited from using on his stationery, 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.

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 Winslow Township Police Department, or his designated representative, at least fourteen (14) days prior to the advertised sale and shall be retained for examination by the Department of Banking and Insurance.

The licensee shall conspicuously post a list of items available for sale on the licensee's principal business at least three (3) 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 Winslow 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 § 192-23G(3).

Public auction or private sale. In addition to the notice requirement set forth in § 192-23D(3), § 192-23G(3) and § 192-23G(4), every public auction or private sale conducted by a licensee shall comply with the following:

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 Winslow Township Police Department and the Department of Banking and Insurance.

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.

A licensee shall allow public inspection of all unredeemed pledges at the site of the public auction for not less than one (1) hour prior to commencement of the auction.