2013 New York Consolidated Laws
GBS - General Business
Article 5 - (40 - 55) COLLATERAL LOAN BROKERS
47 - Second-hand business.

 
    §  47.  Second-hand  business.  A  collateral loan broker may purchase
  items of personal property in accordance  with  this  section,  provided
  however  that  a  collateral loan broker shall not receive in pawn, as a
  pledge or as a purchase any instrument or weapon  mentioned  in  section
  265.05  of the penal law. A collateral loan broker may purchase back any
  pledge offered for sale  by  him  or  her  at  public  auction  and  may
  thereafter  sell  such  pledge if the pledgor fails to redeem within ten
  days or may purchase any pledge offered for sale by any other collateral
  loan broker at private sale or public auction. Nothing in  this  article
  shall  prohibit  a  collateral loan broker from purchasing a pawn ticket
  from a pledgor, his or her heirs or assigns upon  the  request  of  such
  pledgor,  heir or assign, ninety or more days after the item was pawned.
  If the pawn ticket is sold to a collateral loan broker the pledgor,  his
  or  her  heirs or assigns shall be entitled to redeem said ticket within
  ten days thereafter by tendering  to  the  collateral  loan  broker  the
  amount  paid by the collateral loan broker for the ticket. Nothing shall
  prohibit the sale of new or second-hand property upon the premises where
  such collateral loan business is conducted, nor the purchase of  new  or
  second-hand property, except as otherwise expressly prohibited herein. A
  person  selling  any item to a collateral loan broker, upon the premises
  of a collateral loan broker, may  cancel  the  transaction  within  five
  business days, provided that the seller tenders the full purchase price,
  together  with  a  cancellation  fee not to exceed ten dollars for sales
  equal to or greater than five hundred dollars, seven dollars  for  sales
  equal  to or greater than one hundred dollars but less than five hundred
  dollars, or four dollars for sales less  than  one  hundred  dollars.  A
  person  selling  jewelry,  watches,  precious stones, precious metals or
  coins to a collateral loan  broker  shall  be  afforded  the  option  of
  converting  the  sale to a loan, provided the option is exercised within
  fourteen days from the date of the  sale  (the  loan  shall  be  in  the
  principal amount of not less than eighty percent of the sale price).
    A   collateral  loan  broker  engaged  in  the  purchase  or  sale  of
  second-hand articles, other than pledges or pawn tickets,  shall  comply
  with   local  laws  or  regulations  governing  dealers  in  second-hand
  articles.  A  collateral  loan  broker  engaged  in  the   purchase   of
  second-hand  articles  shall  provide the seller a receipt setting forth
  the item or items purchased  and  the  purchase  price  for  each  item.
  Additionally,  the receipt shall include a notice advising the seller of
  the option to cancel  the  transaction  within  five  business  days  or
  convert  the  sale of jewelry, watches, precious stones, precious metals
  and coins to a loan within fourteen days of the sale in accordance  with
  this section.
    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  CANCELLED  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."
    Such  sign  shall be made of a durable material, with letters being at
  least one inch high and have a stroke of at least one-quarter inch.  The
  letters and background shall be of contrasting colors.