2005 Oregon Code - Chapter 726 :: Chapter 726 - Pawnbrokers
Chapter 726 — Pawnbrokers
2005 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 Residence qualifications of licensee
726.060Â Â Â Â Application for license; notice of filing; 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; fee
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; 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 United States whereby the loaning of money or extending of
credit is regulated, provided, that such person is operating in compliance with
the provisions of such law.
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
Residence qualifications of licensee. No license shall be granted to any
person, partnership, association or corporation unless that person and all
members of any such partnership or association are bona fide residents of this
state and unless such corporation is an Oregon corporation in good standing or
a foreign corporation legally qualified to do business in this state.
     726.060
Application for license; notice of filing; fee. (1) Application for the
license shall be in writing in the form prescribed by the Director of the
Department of Consumer and Business Services and shall contain the name and
both the residence and business addresses of the applicant, and if the applicant
is a partnership or association, of every member thereof, and if a corporation,
of each officer and director thereof. The application shall also show the
county and city with street and number, if any, where the business is to be
conducted and such other information that the director may require.
     (2) Before issuing any license, the director shall post notice of filing of the application in the office of the Department of Consumer and Business Services for a period of 30 days. The director may waive posting of the notice if the application is made by an applicant for the same location as one for which a license has been surrendered because:
     (a) The business has been transferred to the applicant;
     (b) The licensee has died and the applicant is the licensee’s personal representative or successor in interest; or
     (c) The licensee is the applicant and has changed the name under which the licensee is doing business.
     (3) The applicant at the time of making application for the applicant’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]
     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 Oregon and for the use of the state and of
any person who may have a cause of action against the obligor of the bond or
the letter of credit issuer under this chapter. The bond or letter of credit
shall be conditioned that the obligor will faithfully conform to and abide by
the provisions of this chapter and of all rules and regulations lawfully made
by the director under this chapter, and will pay to the state and to any such
person any and all moneys that may become due or owing to the state or to such
person from the obligor under and by virtue of the provisions of this chapter.
The Attorney General shall approve the form of any bond or letter of credit
that may be accepted by the director under this section.
     (2) If any person is aggrieved by the misconduct of a pawnbroker or by the pawnbroker’s violation of any law and recovers judgment therefor, such person may, after the return unsatisfied either in whole or in part of any execution issued upon such judgment, maintain an action for the person’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 upon the payment of a fee of $5 and the certified copy shall be prima facie evidence in any court that the bond or letter of credit was duly executed and delivered by each pawnbroker whose name appears thereon. [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]
     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 person’s liabilities exceed the person’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 person’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, the filing of a
bond and approval thereof by the Attorney General and in the absence of any
reason or condition which 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 10 days after the expiration of the required 30-day filing
period or, if the director has waived the filing period, within 10 days after
the date the application was received.
     (2) If the application is denied, the director shall indorse thereon 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 therefor. [Amended by 1971 c.218 §3; 1977 c.135 §56; 1991 c.249 §69]
     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 thereof to the Director of the Department of
Consumer and Business Services and shall surrender the pawnbrokerÂ’s license for
cancellation, together with the payment of a fee of $5 for a new license.
Thereupon a new license shall be issued by the director for the new location.
No change in the place of business of a pawnbroker to a location outside of the
city or town named in the original license shall be permitted under the same
license. [Amended by 1971 c.218 §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 not later than December 15 of each year or upon approval of a new license application.
     (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]
     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 person’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) At least once every two calendar years or 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) At least once during any calendar year in which an examination is not conducted under subsection (2) of this section, 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]
     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:
     (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]
     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; liability. If the pawn ticket or
memorandum 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 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. Upon receipt of the affidavit, or in case no affidavit is
required, then within not less than three nor more than five days from receipt
of 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 shall not be construed as in any manner limiting or
affecting the pawnbrokerÂ’s legal liability in cases where goods are stolen or
other legal defects of title exist in the pledgor.
     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 United States. In addition, a pledgor or customer may be
charged any fee imposed by any governmental entity upon a pawnbroker for
holding or transferring a firearm. [1973 c.449 §3; 1997 c.842 §4]
     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 pawnbroker’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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