2007 Oregon Code - Chapter 726 :: Chapter 726 - Pawnbrokers
Chapter 726 —
Pawnbrokers
2007 EDITION
PAWNBROKERS
LOAN ASSOCIATIONS AND LENDING INSTITUTIONS
GENERAL PROVISIONS
726.010Â Â Â Â Definitions
726.020Â Â Â Â Short
title; application of chapter
726.030Â Â Â Â Construction
of chapter
LICENSING
726.040Â Â Â Â Pawnbroker
license required
726.050Â Â Â Â Requirements
for issuance of license
726.060Â Â Â Â Application
for license; contents; fee
726.070Â Â Â Â Applicant
to furnish bond or letter of credit; actions on bond or letter of credit
726.075Â Â Â Â Grounds
for denial of license
726.080Â Â Â Â Issuance
and denial of license
726.090Â Â Â Â Form
of license; posting; transferability
726.100Â Â Â Â Additional
licenses to same applicant
726.110Â Â Â Â Change
of place of business
726.125Â Â Â Â License
fees; fees for extra service
726.130Â Â Â Â Annual
report of licensee
726.150Â Â Â Â Revocation
and suspension of license
726.155Â Â Â Â Procedure
for license denial, revocation or suspension
726.170Â Â Â Â Reinstatement
and reissue of license; fee
726.180Â Â Â Â Expiration
of license; effect of revocation, suspension or surrender of license
726.190Â Â Â Â Surrender
of license
726.250Â Â Â Â Investigations
and examinations; cost
726.255Â Â Â Â Investigation
of pawnbrokers; oaths; witnesses; subpoenas; depositions
REGULATION
726.260Â Â Â Â Rules
and rulings
726.270Â Â Â Â Prohibited
transactions
726.280Â Â Â Â Register
and records of licensee
726.285Â Â Â Â Records
of transactions by pawnbroker; delivery of copies to local police agency
726.290Â Â Â Â Signing
of card, stub or record by pledgor
726.300Â Â Â Â Contents
of pawn ticket; effect
726.310Â Â Â Â Holder
presumed entitled to redeem
726.320Â Â Â Â Redemption
by mail
726.330Â Â Â Â Delivery
of pledge upon surrender of pawn ticket
726.340Â Â Â Â Loss,
destruction or theft of pawn ticket; affidavit; liability
726.350Â Â Â Â Alteration
726.360Â Â Â Â Spurious
pawn tickets
726.370Â Â Â Â Multiple
claimants of pledge; interpleader
726.380Â Â Â Â Loss
of or injury to pledge; lien on pledge
726.390Â Â Â Â Interest
rates and charges
726.395Â Â Â Â Charges
related to firearms
726.400Â Â Â Â Loan
period; forfeiture of pledge; notice; period for redeeming pledge
726.410Â Â Â Â Record
of forfeited pledges
726.420Â Â Â Â Effect
of charging excessive interest or fees
726.440Â Â Â Â Enforcement
orders
PENALTIES
726.910Â Â Â Â Civil
penalties
726.990Â Â Â Â Criminal
penalties
GENERAL PROVISIONS
     726.010
Definitions. As used in this
chapter, unless the context requires otherwise:
     (1) “Director” means the Director of the
Department of Consumer and Business Services.
     (2) “Pawnbroker” means any person,
copartnership, association or corporation:
     (a) Lending money at a higher rate of
interest than 10 percent per annum on the deposit or pledge of personal
property other than choses in action, vehicles required by law to be registered
with the Department of Transportation, securities or printed evidences of
indebtedness;
     (b) Purchasing any personal property other
than choses in action, vehicles required by law to be registered with the Department
of Transportation, securities or printed evidences of indebtedness on the
direct or implied condition of selling it back at a stipulated price that would
amount to the payment of interest or consideration in excess of 10 percent per
annum; or
     (c) Doing business as storage warehouseman
and lending money at a higher rate of interest than 10 percent per annum upon
goods, wares, merchandise or personal property pledged or deposited as
collateral security other than vehicles required by law to be registered with
the Department of Transportation.
     (3) “Pledge” means any article deposited
with a pawnbroker in the course of the business of the pawnbroker as defined in
subsection (2) of this section.
     (4) “Pledgor” means the person who
delivers a pledge into the possession of a pawnbroker, unless the person
discloses that the person is or was acting for another, in which event “pledgor”
means the disclosed principal.
     (5) “Pledge loan” means a loan made by a
pawnbroker to a pledgor and secured by a pledge. [Amended by 1971 c.168 §1;
1985 c.762 §135; 1987 c.373 §71; 1993 c.744 §27]
     726.020
Short title; application of chapter. This chapter shall be known as the Pawnbrokers Act. It is applicable
to any person who qualifies under its provisions, and to such other person as
shall by violating any of its provisions be subject to the penalties provided
in ORS 726.990.
     726.030
Construction of chapter.
Nothing in this chapter shall be construed or held to limit the rights, powers
or privileges granted to any person by any law of this state or of the
LICENSING
     726.040
Pawnbroker license required.
No person shall engage or continue in the business of a pawnbroker, or use any
assumed business name or advertising that in any way would lead the public to
believe the person is a licensed pawnbroker, except as authorized by this
chapter and without first procuring a license from the Director of the
Department of Consumer and Business Services as provided in this chapter. [Amended
by 1979 c.202 §1]
     726.050
Requirements for issuance of license. The Director of the Department of Consumer and Business Services may
not issue a license to a corporation, limited liability company or limited
liability partnership or to a person using an assumed business name unless:
     (1) The limited liability company or
limited liability partnership has filed the required documents under ORS
chapter 63 or 67;
     (2) The person using the assumed business
name has registered the name under ORS chapter 648; or
     (3) The corporation is an
     726.060
Application for license; contents; fee. (1) An application for the license shall be in writing in a form
prescribed by the Director of the Department of Consumer and Business Services.
     (2) The application shall contain:
     (a) If the applicant is an individual, the
name and both the residence and business addresses of the applicant;
     (b) If the applicant is a partnership or
association, the name and both the residence and business addresses of every
member of the partnership or association;
     (c) If the applicant is a corporation, the
name and both the residence and business addresses of each officer and director
of the corporation;
     (d) The county and city with street and
number, if any, where the business is to be conducted; and
     (e) Any other information that the
director may require.
     (3) The applicant at the time of making
application for the applicantÂ’s first licensed location in this state shall pay
to the director a nonrefundable application fee of $500. [Amended by 1971 c.218
§1; 1985 c.762 §136; 1997 c.842 §1; 2007 c.360 §2]
     726.070
Applicant to furnish bond or letter of credit; actions on bond or letter of
credit. (1) A bond in the
sum of $25,000 executed by the applicant as obligor, together with a surety
company authorized to do business in this state as surety or an irrevocable
letter of credit issued by an insured institution as defined in ORS 706.008 in
the amount of $25,000 shall accompany the application and be maintained by the
pawnbroker licensee with the Director of the Department of Consumer and
Business Services. This bond or letter of credit shall be executed to the State
of
     (2) If any person is aggrieved by the
misconduct of a pawnbroker or by the pawnbrokerÂ’s violation of any law and
recovers judgment therefor, the person may, after the return unsatisfied either
in whole or in part of any execution issued upon the judgment, maintain an
action for the personÂ’s own use upon the bond or letter of credit of the
pawnbroker in any court having jurisdiction of the amount claimed. The director
shall furnish to anyone applying therefor, a certified copy of any such bond or
letter of credit filed with the director. The certified copy is prima facie
evidence in any court that the bond or letter of credit was duly executed and
delivered by each pawnbroker whose name appears on the bond or letter of
credit. [Amended by 1971 c.218 §2; 1979 c.202 §2; 1991 c.331 §125; 1993 c.18 §155;
1997 c.631 §544; 2003 c.176 §1; 2007 c.360 §3]
     726.075
Grounds for denial of license.
The Director of the Department of Consumer and Business Services may not grant
a license to engage in the business of pawnbroker to any person if any person
named in the application submitted pursuant to ORS 726.060:
     (1) Is insolvent, either in the sense that
the personÂ’s liabilities exceed the personÂ’s assets or that the person cannot
meet obligations as they mature, or is in such financial condition that the
person cannot continue in business with safety to the personÂ’s customers;
     (2) Has engaged in dishonest, fraudulent
or illegal practices or conduct in any business or profession;
     (3) Has willfully or repeatedly violated
or failed to comply with any provision of the Oregon Bank Act, the Savings
Association Act, the Oregon Credit Union Act, the Oregon Consumer Finance Act
or the Pawnbrokers Act, or any administrative rule or order adopted pursuant to
any such Act;
     (4) Has been convicted of a crime, an
essential element of which is fraud;
     (5) Is not qualified to conduct a
pawnbroker business on the basis of such factors as training, experience and
knowledge of the business;
     (6) Is permanently or temporarily enjoined
by a court of competent jurisdiction from engaging in or continuing any conduct
or practice involving any aspect of the pawnbroker business;
     (7) Is the subject of an order of the
director, subjecting the person to a fine or other civil penalty, or removing
the person from an office in any entity regulated by either director; or
     (8) Is the subject of an order entered
within the past five years, subjecting the person to a fine or other civil
penalty, or removing the person from an office in a state banking institution,
a national bank, a state or federal savings association, a state or federal
credit union or a consumer finance company, issued by the regulatory authority
of another state or of the federal government with authority over such banking
institutions, credit unions, consumer finance companies or savings
associations. [1977 c.135 §55; 1985 c.762 §137]
     726.080
Issuance and denial of license.
(1) Conditioned upon the applicantÂ’s compliance with this chapter, the payment
of the license fee and the filing of a bond or letter of credit on a form
approved by the Attorney General, and in the absence of any reason or condition
that in the judgment of the Director of the Department of Consumer and Business
Services might warrant the refusal of the granting of a license, including the
reasons set out in ORS 726.075, the director shall issue a license within 45
days after the date a complete application was received.
     (2) If the application is denied, the
director shall indorse on the application with the date the word “Disapproved”
and shall immediately advise the applicant by registered mail or by certified
mail with return receipt of the reason for the denial. [Amended by 1971 c.218 §3;
1977 c.135 §56; 1991 c.249 §69; 2007 c.360 §4]
     726.090
Form of license; posting; transferability. The licenses shall be in a form prescribed by the Director of the
Department of Consumer and Business Services and shall state the address at which
the business is to be conducted and the full name of the pawnbroker. The
license shall be kept conspicuously posted in the place of business of the
pawnbroker and shall not be transferable or assignable. [Amended by 1971 c.218 §4]
     726.100
Additional licenses to same applicant. No pawnbroker shall transact any business within the scope of this
chapter except under the name at the place of business named in the license.
The Director of the Department of Consumer and Business Services may issue more
than one license to the same pawnbroker upon the pawnbrokerÂ’s compliance with
all the provisions of this chapter governing an original issuance of a license
for each such additional license. Each additional license shall be for a
separate and distinct place of business for the making and completing of pledge
loans as provided in this chapter.
     726.110
Change of place of business; fee. Whenever a pawnbroker changes the place of business to another
location within the same city or town, the pawnbroker shall at once give
written notice of the change to the Director of the Department of Consumer and
Business Services and shall surrender the pawnbrokerÂ’s license for
cancellation. Thereupon a new license shall be issued by the director for the
new location. A change in the place of business of a pawnbroker to a location
outside of the city or town named in the original license is not permitted
under the same license. [Amended by 1971 c.218 §5; 2007 c.360 §5]
     726.120 [Amended by 1971 c.218 §6; repealed by 1985
c.762 §196]
     726.125
License fees; fees for extra service. (1) Each pawnbroker shall pay to the Director of the Department of
Consumer and Business Services each year the license fee determined by the
director under subsection (2) of this section.
     (2) The director may charge and collect a
license fee from each pawnbroker, according to a license fee schedule
established by the director by rule, for the purpose of defraying the costs of
performing supervision, enforcement and other duties imposed by law upon the director
in respect to pawnbrokers. In setting the license fee schedule and allocating
license fees among pawnbrokers, the director shall take into consideration the
costs of performing the duties of the director relative to each pawnbroker, the
amount of all other moneys paid to the director under this chapter and the cost
of developing and maintaining a reasonable emergency fund. License fees under
this subsection shall be assessed and paid upon approval of a new license
application, and not later than December 15 or such date as may be specified by
the director by rule for renewal of a license.
     (3) In addition to the license fee
collected under subsection (2) of this section, whenever the director devotes
any extra attention to the affairs of a pawnbroker, either upon determination
by the director or upon request of the pawnbroker, the fee for the extra
service shall be the actual cost thereof. [1985 c.762 §139; 1997 c.842 §2; 2007
c.768 §56]
     726.130
Annual report of licensee.
Every pawnbroker, on or before January 15, shall submit to the Director of the
Department of Consumer and Business Services an annual report in a form
prescribed by the director, giving the following information:
     (1) The number of pledge loans and total
amount outstanding at the beginning of the year.
     (2) The number of pledge loans made during
the year and the aggregate amount of the pledge loans.
     (3) The number of pledge loans canceled
during the year and the aggregate amount of the canceled pledge loans.
     (4) The number of pledge loans and total
amount outstanding at the close of the year.
     (5) Any other information requested by the
director. [Amended by 2005 c.21 §14]
     726.140 [Repealed by 1971 c.743 §432]
     726.150
Revocation and suspension of license. (1) The Director of the Department of Consumer and Business Services
may revoke any license under this chapter if the director finds that:
     (a) The pawnbroker has failed to pay the
annual license fee or to maintain in effect the required bond or to comply with
any demand, ruling or requirement of the director lawfully made pursuant to and
within the authority of this chapter or to comply with the provisions of law to
keep the corporation in good standing if such pawnbroker is a corporation;
     (b) The pawnbroker has violated any provision
of this chapter or any rule or regulation lawfully made by the director under
and within the authority of this chapter; or
     (c) Any fact or condition exists which, if
it had existed at the time of the original application for a license, would
have warranted the director in refusing originally to issue the license.
     (2) The director may, without notice or
hearing, suspend any license for a period not exceeding 30 days, pending
investigation.
     (3) The director may revoke or suspend
only the particular license with respect to which grounds for revocation or
suspension occur or exist, or, if the director finds that such grounds for
revocation or suspension are of general application to all offices or to more
than one office operated by the pawnbroker, the director shall revoke or
suspend all the licenses issued to the pawnbroker or such number of licenses as
such grounds apply to, as the case may be. [Amended by 1971 c.734 §177; 1977
c.135 §57]
     726.155
Procedure for license denial, revocation or suspension. (1) Where the Director of the Department of
Consumer and Business Services proposes to refuse to issue a license, or
proposes to revoke or suspend a license, opportunity for hearing shall be
accorded as provided in ORS chapter 183.
     (2) Judicial review of orders under
subsection (1) of this section shall be as provided in ORS chapter 183. [1971
c.734 §179]
     726.160 [Repealed by 1971 c.734 §21]
     726.170
Reinstatement and reissue of license; fee. The Director of the Department of Consumer and Business Services may
reinstate any suspended license or issue a new license to a pawnbroker whose
license has been revoked, upon the pawnbrokerÂ’s compliance with the provisions
of law or any demand, ruling or requirement lawfully made by the director
pursuant to and within the authority of this chapter. For such reinstatement or
issuance of a new license a fee of $25 shall be paid.
     726.180
Expiration of license; effect of revocation, suspension or surrender of
license. Every license
issued under this chapter shall remain in force until it has been surrendered,
revoked or suspended in accordance with the provisions of this chapter. No
revocation, suspension or surrender of any license shall impair or affect the
obligation of any preexisting lawful contract between the pawnbroker and any
borrower. [Amended by 1971 c.218 §7]
     726.190
Surrender of license. Any
pawnbroker may surrender any license by delivering to the Director of the
Department of Consumer and Business Services written notice that the pawnbroker
thereby surrenders such license, but such surrender shall not affect the
pawnbrokerÂ’s civil or criminal liability for acts committed prior to the
surrender.
     726.250
Investigations and examinations; cost. (1)(a) For the purpose of discovering violations of this chapter or
securing information required by the Director of the Department of Consumer and
Business Services under this chapter, the director at any time, either
personally or by an examiner or other employee of the Department of Consumer
and Business Services, may investigate the pledge loans and business and
examine the books, accounts, records and files used in the pledge loans and
business of every pawnbroker and of every person that the director has reason
to believe is acting as a pawnbroker without a license, whether that person
acts or claims to act as principal or agent, or under or without the authority
of this chapter.
     (b) For the purposes of paragraph (a) of
this subsection:
     (A) Every pawnbroker and person that the
director has reason to believe is acting as a pawnbroker without a license
shall give the director, examiner or other employee of the department free
access to the personÂ’s place of business, books, accounts, papers, records,
files, safes and vaults; and
     (B) The director, examiner or other
employee may:
     (i) Compel the attendance of witnesses and
examine the witnesses under oath; and
     (ii) Require the production of documents
or records.
     (c) The actual cost of each examination
shall be paid to the director by every person examined. The director may
maintain an action for recovery of costs in any court of competent
jurisdiction.
     (2) As often as the director determines
necessary, the director, examiner or other employee of the department shall
make an examination of the pledge loans and business, office records and files
of each licensed pawnbroker. The examination shall occur at the licensed
location of the pawnbroker.
     (3) As often as the director determines
necessary, each licensed pawnbroker shall submit to the director for examination,
at the office of the director, those books, records and documents prescribed by
the director by rule. [Amended by 1973 c.449 §1; 1985 c.762 §140; 2003 c.176 §2;
2005 c.338 §28; 2007 c.360 §6]
     726.255
Investigation of pawnbrokers; oaths; witnesses; subpoenas; depositions. (1) For the purpose of an investigation or
proceeding under the Pawnbrokers Act, the Director of the Department of
Consumer and Business Services may administer oaths and affirmations, subpoena
witnesses, compel their attendance, take evidence and require the production of
books, papers, correspondence, memoranda, agreements or other documents or
records that the director considers relevant or material to the inquiry.
     (2) If a person fails to comply with a
subpoena issued under subsection (1) of this section or a party or witness
refuses to testify on any matter, the judge of the circuit court for any
county, on the application of the director, shall compel obedience in the
manner provided by law in the case of disobedience to a subpoena issued in a
civil action in the circuit court.
     (3) Each witness who appears before the
director under a subpoena shall receive the fees and mileage provided for
witnesses in ORS 44.415 (2), except a witness subpoenaed at the instance of
parties other than the director or an examiner shall not be compensated for
attendance or travel unless the director certifies that the testimony of the
witness was material to the matter investigated.
     (4) The director in any investigation may
cause the depositions of witnesses to be taken in the manner prescribed by law
for like depositions in civil suits in the circuit court. [1979 c.202 §9; 1985
c.762 §141; 1989 c.980 §21]
REGULATION
     726.260
Rules and rulings. (1) The
Director of the Department of Consumer and Business Services shall administer
and enforce this chapter.
     (2) In accordance with ORS chapter 183,
the director may adopt rules and make any specific rulings, demands and
findings as may be necessary for the proper conduct of the pawnbroker business
and the enforcement of this chapter.
     (3) In addition to the notice requirements
of ORS chapter 183, before the director adopts a rule, the director shall
submit a copy of the rule to each pawnbroker. [Amended by 1985 c.762 §142]
     726.270
Prohibited transactions. No
pawnbroker shall:
     (1) Transact any business between the
hours of 9 p.m. and 7 a.m. except that on Saturday the pawnbroker may transact
business up to the hour of 10 p.m.
     (2) Accept a pledge from any person who is
under the age of 18 years.
     (3) Convert or dispose of any unredeemed
pledge before the time to redeem it has expired or before the pledge has been
forfeited to the pawnbroker as provided in ORS 726.400. [Amended by 1975 c.739 §1]
     726.280
Register and records of licensee. (1) Every pawnbroker shall keep a register in which shall be recorded
in ink or in electronic form:
     (a) The date of the transaction.
     (b) The serial number of the pledge loan.
     (c) The name and address of the pledgor,
or if the pledge is made by a person acting as agent for a disclosed principal,
the name and address of principal and agent.
     (d) An identifying description of the
article or articles pledged.
     (e) The amount of the pledge loan.
     (f) The date on which such pledge loan was
canceled.
     (g) A notation as to whether it was
redeemed or renewed, or whether the pledge was forfeited.
     (2) All entries in the register shall be
made in the English language and shall be open to the inspection of any public
official, police officer or any other person who is duly authorized or
empowered by the laws of this state to make such inspection.
     (3) Every pawnbroker shall maintain an
alphabetical file from which can be determined the total obligations of any one
pledgor.
     (4) Subject to the provisions of this
chapter, the Director of the Department of Consumer and Business Services may
prescribe the form of other books and records to be kept by the pawnbroker. All
records shall be preserved and available for at least two years after making
the final entry on any pledge loan recorded therein. [Amended by 1979 c.202 §3;
1987 c.373 §72; 2007 c.360 §7]
     726.285
Records of transactions by pawnbroker; delivery of copies to local police
agency. (1) In addition to
the register required under ORS 726.280, a pawnbroker shall record, for each transaction,
the date, the name and address of the pledgor, the type and number of any proof
of identification presented by the pledgor, a physical description of the
pledgor and an identifying description of the article pledged.
     (2) The pawnbroker shall deliver each
record, or a copy thereof, made under this section, within three days after the
date of the transaction, to the local police agency that has jurisdiction over
the location at which the pawnbroker has a place of business. [1979 c.202 §10]
     726.290
Signing of card, stub or record by pledgor. The pawnbroker shall at the time of making a loan require the pledgor
or agent of the pledgor to write the signature and address of the pledgor or
the agent of the pledgor on a card, ticket, stub or any other approved record,
bearing the serial number of the loan corresponding to that recorded in the
pawnbrokerÂ’s register as provided in ORS 726.280. If the person is unable to
write, the person shall sign the personÂ’s mark, and in such event the
pawnbroker shall record on the signature card, stub or record such information
as will enable the pawnbroker to identify the person in case of the loss of the
ticket.
     726.300
Contents of pawn ticket; effect. (1) The pawnbroker shall at the time of making a pledge loan deliver
to the pledgor or the agent of the pledgor a memorandum or pawn ticket on which
shall be legibly written or printed the following:
     (a) The date of the transaction.
     (b) The serial number of the pledge loan.
     (c) The article or articles pledged.
     (d) The amount of the pledge loan.
     (e) The rate of interest charged on the
loan.
     (f) The name and address of the
pawnbroker.
     (g) An accurate summary of the notice
requirements of ORS 726.400 (2).
     (h) Such other terms and conditions not
inconsistent with this chapter as the pawnbroker may wish to insert.
     (2) Nothing appearing on the pawn ticket
shall relieve the pawnbroker of the obligation of exercising reasonable care in
the safe keeping of articles pledged with the pawnbroker. [Amended by 1979
c.202 §4]
     726.310
Holder presumed entitled to redeem. Except as otherwise provided in this chapter, the holder of the
memorandum or pawn ticket shall be presumed to be the person entitled to redeem
the pledge. The pawnbroker shall deliver the pledge to the person presenting
such memorandum or pawn ticket upon payment of principal and interest due on
the pledge loan.
     726.320
Redemption by mail. When a
pawn ticket, instead of being presented in person, is sent to the pawnbroker by
mail, accompanied with a money order, bank draft or cash for the amount due
including the cost of shipment and packing as desired, the pledge shall be
securely packed and forwarded by the pawnbroker in accordance with the remitterÂ’s
instructions. If the remittance is insufficient to cover the amount due and the
cost of shipment and packing as desired, the pawnbroker shall either notify the
remitter of the amount of the deficiency or send the pledge subject to the
payment of the deficiency by the consignee. The pawnbrokerÂ’s liability for the
pledge shall cease upon delivery thereof to the carrier or the agent of the
carrier. [Amended by 1973 c.449 §4; 1981 c.192 §43]
     726.330
Delivery of pledge upon surrender of pawn ticket. Except as otherwise provided in this
chapter, a pawnbroker shall not be required to deliver a pledge except upon
surrender of the pawn ticket, unless the ticket is impounded or its negotiation
enjoined by a court of competent jurisdiction.
     726.340
Loss, destruction or theft of pawn ticket; affidavit; liability. If the pawn ticket or memorandum is lost,
destroyed or stolen, the pledgor shall so notify the pawnbroker in writing. The
pawnbroker shall treat receipt of such notice as a stop against the pledge
loan, and thereafter the provisions of ORS 726.310 and 726.320 shall not apply
to such pledge loan. Before delivering the pledge or issuing a new pawn ticket
in such event, the pawnbroker may require the pledgor to make an affidavit of
the alleged loss, destruction or theft of the ticket. Not more than five days
after receiving notice of the loss of the ticket, the pawnbroker shall permit
the pledgor either to redeem the pledge or to receive a new ticket upon the
payment of accrued interest, and the pawnbroker shall incur no liability for so
doing unless the pawnbroker has previously received written notice of an
adverse claim. This section does not limit or affect the pawnbrokerÂ’s legal
liability in cases where goods are stolen or other legal defects of title exist
in the pledgor. [Amended by 2007 c.360 §8]
     726.350
Alteration. The alteration
of a pawn ticket shall not excuse the pawnbroker who issued it from liability
to deliver the pledge according to the terms of the pawn ticket as originally
issued, but shall relieve the pawnbroker of any other liability to the pledgor
or holder of the pawn ticket.
     726.360
Spurious pawn tickets. If a
pawn ticket is presented to a pawnbroker which purports to be the one issued by
the pawnbroker, but which is found to be spurious, the pawnbroker may seize and
retain it without any liability whatsoever to the holder thereof. Any such pawn
ticket so seized shall be delivered or mailed immediately to the Director of
the Department of Consumer and Business Services accompanied by a letter of
explanation. [Amended by 1987 c.373 §73]
     726.370
Multiple claimants of pledge; interpleader. If more than one person claims the right to redeem a pledge, the
pawnbroker shall incur no liability for refusing to deliver the pledge until
the respective rights of the claimants have been adjudicated. In case of an
action brought against the pawnbroker for recovery of the pledge, the
pawnbroker may as a defense require all known claimants to interplead. If no
action is brought against the pawnbroker by either claimant within 30 days
after notice of an adverse claim the pawnbroker may proceed to dispose of the
pledge as provided in this chapter.
     726.380
Loss of or injury to pledge; lien on pledge. A pawnbroker shall be liable for the loss of a pledge or a part
thereof or for injury thereto resulting from failure to exercise reasonable
care. Such care shall include maintaining sufficient insurance coverage against
possible loss due to fire, theft and burglary so as to protect the interest of
the pledgor for the amount of the loan. In case of loss the burden of proof to
establish due care shall be upon the pawnbroker. The pawnbroker shall have a
first lien on any pledge for the amount of the pledge loan and interest in all
cases except where goods are stolen or where a prior lien exists by virtue of
any provision of law. [Amended by 1979 c.202 §5]
     726.390
Interest rates and charges.
(1) A pawnbroker may not charge, contract for or receive interest at a rate in
excess of three percent per month. However, on pledge loans redeemed within the
first month the pawnbroker may charge a monthÂ’s interest, or the pawnbroker may
charge $3 when the interest accumulated amounts to less. The interest may not
be compounded and no amount whatsoever may be deducted or received in advance.
     (2) A set-up fee of 10 percent may be charged
on all loans and on all loan renewals with a minimum charge of $2 and a maximum
charge of $100.
     (3) A storage fee of up to two percent may
be charged on all loans and on all loan renewals, with a minimum charge of $2.
     (4) Except as provided by law, no further
or other charge or amount whatsoever may be charged, contracted for or received
in addition to the interest provided for in this section. [Amended by 1973
c.449 §5; 1979 c.202 §6; 1981 c.192 §44; 1985 c.795 §1; 1997 c.842 §3]
     726.395
Charges related to firearms.
A charge of $3 may be charged a pledgor or customer who places with the
pawnbroker firearms required to be registered under the laws of the
     726.400
Loan period; forfeiture of pledge; notice; period for redeeming pledge. (1) Unless a longer loan period is agreed
upon by the pledgor and the pawnbroker, all loans shall be made for a period of
60 days. However, a pledge may be redeemed and the pledge loan repaid at any
time before the loan period expires. All pawn tickets shall clearly state the
expiration date of the loan.
     (2) Except for a pledge securing a pledge
loan of less than $500, before any pledge may be deemed forfeited, the
pawnbroker after the expiration of the period mentioned in subsection (1) of
this section must cause a notice to be given the pledgor as provided in this
section. The notice shall notify the pledgor of the forfeiture of the pledge.
The notice shall be in writing and delivered postpaid by certified mail, return
receipt required, in a securely closed envelope addressed to the pledgor at the
last-known address shown on the pawnbrokerÂ’s record. Delivery of a notice under
this subsection occurs when the notice is mailed as provided in this
subsection. The certified return receipt card or the returned envelope shall be
kept on file by the pawnbroker for at least two years from date of mailing
thereof as evidence of the notification. The postal costs and a reasonable
charge for preparing the notice shall be borne by the pledgor. A pledgor shall
have a grace period of 30 days after the delivery of the notice required by
this subsection in which to redeem the pledge, or to renew the loan for one
additional 60-day period, or less, by paying any renewal fee and all the
accrued interest and fees to date. There shall be no grace period following the
expiration of any renewal.
     (3) Any pledge that is not redeemed within
30 days after the expiration of the 60-day loan period, or within the period of
renewal, if any, shall be deemed forfeited and the pawnbroker shall thereby
acquire all the right, title and interest of the pledgor therein to hold and
dispose of the pledge as the pawnbroker’s own property. [Amended by 1973 c.449 §6;
1979 c.202 §7; 1981 c.192 §45; 1985 c.795 §2; 1997 c.842 §5]
     726.410
Record of forfeited pledges.
Every pawnbroker shall keep an indelible record, fully itemized, of all
forfeited pledges. The record shall contain the following information:
     (1) The number of the pledge.
     (2) The name and address of the pledgor.
     (3) The date of the pledge loan or the
date of the last payment received as interest or principal.
     (4) The date of mailing notice.
     (5) The date of forfeiture. [Amended by
1985 c.795 §3]
     726.420
Effect of charging excessive interest or fees. If any pawnbroker or agent, member, officer
or employee thereof, or any other person is found by the Director of the
Department of Consumer and Business Services to have charged, contracted for or
received any interest, fees or other charges in excess of those permitted by
ORS 726.390, then the pledge loan shall be void. The pawnbroker shall forfeit
the right to collect or receive any principal, interest or charges whatsoever.
The pawnbroker shall upon order of the director return to the pledgor free from
the pawnbrokerÂ’s lien the pledge pledged by the pledgor without tender of
principal and interest and shall pay into the county school fund of the county
wherein the loan is made all payments and all fees or other charges previously
collected under such pledge loan. [Amended by 1975 c.544 §59a; 1987 c.373 §74]
     726.430 [Repealed by 1975 c.544 §62]
     726.440
Enforcement orders. (1) The
Director of the Department of Consumer and Business Services may, if the
director has reason to believe that a person has:
     (a) Violated, is violating or is about to
violate ORS 726.040, 726.100, 726.110, 726.130, 726.270, 726.280, 726.285,
726.290, 726.300, 726.390, 726.400 or 726.410, a rule adopted under ORS 726.260
or an order issued under this chapter, issue an order to cease and desist from
the violation.
     (b) Failed to file the annual report
required by ORS 726.130, issue an order to file the report.
     (c) Filed information under ORS 726.060,
726.110, 726.130 or 726.250 that is false or untruthful, issue an order to
correct the filing.
     (d) Failed to maintain in effect the bond
or an irrevocable letter of credit required under ORS 726.070, issue an order
to remedy the failure.
     (2)(a) The director shall serve an order
under this section on the person named in the order.
     (b) An order issued under this section
becomes effective upon service on the person named in the order.
     (c) ORS 183.413 to 183.470 apply to an
order issued under this section.
     (d) Notwithstanding paragraph (c) of this
subsection, a person may not obtain a hearing on the order unless the person
requests the hearing in writing within 20 days after service of the order.
     (e) A person who does not request a
contested case hearing may not obtain judicial review of the order.
     (f) The director may vacate or modify an
order issued under this section. A modified order is effective upon service on
the person named in the order.
     (3) The authority conferred by this
section is in addition to and not in lieu of any other authority conferred on
the director. [2005 c.338 §27]
PENALTIES
     726.910
Civil penalties. (1) Any
person who violates ORS 726.040, 726.100, 726.110, 726.130, 726.270, 726.280,
726.285, 726.290, 726.300, 726.390, 726.400 or 726.410 or any rule adopted
under ORS 726.260 or an order issued under ORS 726.440 shall forfeit a civil
penalty in an amount determined by the Director of the Department of Consumer
and Business Services of not more than $2,500. The civil penalty forfeited
shall be paid into the State Treasury and credited as provided in ORS 705.145.
In addition, the director may revoke the license of any licensee who violates
any such provision.
     (2) The civil penalty may be recovered in
an action brought in the name of the State of Oregon in any court of
appropriate jurisdiction or may be imposed as provided in ORS 183.745.
     (3) In any court action with respect to a
civil penalty, including judicial review under ORS 183.745, the court may
review the penalty as to both liability and reasonableness of amount. [1975
c.544 §61; 1985 c.762 §143; 1991 c.734 §99; 2005 c.338 §29]
     726.990
Criminal penalties. (1)
Violation, or participation in the violation, of any provision of this chapter
by any pawnbroker or any agent, member, officer or employee thereof, or any
other person is punishable, upon conviction, by a fine of not less than $100
nor more than $500 or by imprisonment in the county jail for not less than one
month and not more than six months, or both.
     (2) Upon conviction under subsection (1)
of this section, no license shall be granted to such person, nor to the husband
or wife of such person, nor to any partnership, association or corporation of
which the person is an agent or member, until two years after the date of the
conviction. [Amended by 1971 c.743 §425; 1987 c.373 §75]
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