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PAWNBROKERS
Sections:
5.24.010 Definitions.
5.24.020 License required.
5.24.030 Application.
5.24.040 Application fee.
5.24.050 Investigation.
5.24.060 Denial-Suspension-Revocation.
5.24.070 Transferability-Change of ownership-Change of corporate
structure.
5.24.080 Manager-Change of manager.
5.24.090 Expiration and annual renewal.
5.24.100 Annual license fee.
5.24.110 Bond required.
5.24.120 City Manager's approval required.
5.24.140 Books and records.
5.24.150 Pawn tickets.
5.24.160 Transfer of pawn ticket generally-Transfer to pawnbroker.
5.24.170 Loss of pawn ticket.
5.24.180 Adverse claims.
5.24.190 Altered pawn ticket.
5.24.200 Seizure of counterfeit or reportedly lost pawn ticket-Seizure
of counterfeit or fraudulent identification.
5.24.210 Interest rate-Commission.
5.24.220 Intermediate payments-Receipts.
5.24.230 Property held-Time limit-Sale of unredeemed articles.
5.24.240 Sale of articles represented by pawn tickets transferred
to pawnbroker.
5.24.250 Hold order.
5.24.260 No deficiency or offsets permitted.
5.24.270 Unlawful transactions.
5.24.280 Unlawful to pawn certain items.
5.24.290 Safekeeping-Insurance.
5.24.300 Accepting lost or stolen articles.
5.24.310 Seized property held by Police-Administrative hearing
to determine possession.
5.24.315 Conduct of hearing regarding right to possession
of seized property.
5.24.320 Liability for pledged property.
5.24.330 Removal of place of business.
5.24.340 Investigation-Right of entry.
5.24.350 Hours.
5.24.360 Videotape and photograph requirements.
5.24.370 Transaction fee.
5.24.380 Recovery of transaction fees, penalty, and interest.
5.24.390 Transaction fee deficiency.
5.24.400 Interest rate on delinquent transaction fees.
5.24.410 Interest on underpayment, overpayment, nonpayment
or extensions of time for payment of transaction.
5.24.420 Other remedies.
5.24.430 Review by District Court.
5.24.440 Penalty.
5.24.450 Rules and regulations.
5.24.460 Location of Pawnbroker Businesses.
5.24.010 Definitions.
As used in this chapter:
"Contract for purchase" means a contract entered into between a pawnbroker and a customer pursuant to which money is advanced to a customer by the pawnbroker on the delivery of tangible personal property by the customer on the condition that a customer, for a fixed price and within a fixed period of time, to be no less than thirty days, has the option to cancel said contract.
"Fixed price" means that amount agreed upon to cancel a contract for purchase during the option period. Said fixed price shall not exceed one-fifth of the original purchase price for each month plus the original purchase price.
"Fixed time" means that period of time, to be no less than thirty days, as set forth in a contract for purchase, for an option to cancel said contract.
“Manager” means an individual employee of a pawnbroker who directs the business of the pawnbroker and who is in direct control of the pawnbrokering business.
"Option" means the fixed time and the fixed price agreed upon by the customer and the pawnbroker in which a contract for purchase may but does not have to be rescinded by the customer.
"Pawnbroker" means a person, partnership, limited liability company, or corporation regularly engaged in the business of making contracts for purchase or purchase transactions in the course of his business. The term does not include Secondhand Dealers as defined in and regulated by C.R.S. Section 18-13-114 through C.R.S. Section 18-13-118.
"Pawnbrokering" means the business of a pawnbroker as defined by this section.
"Pledge" or "pledged property" means any tangible personal property deposited with a pawnbroker pursuant to a contract for purchase in the course of his business as defined in this section.
"Pledgor" means a customer who delivers a pledge into the possession of a pawnbroker.
"Purchase transaction" means the purchase by a pawnbroker in the course of his business of tangible personal property for resale, other than newly manufactured tangible personal property which has not previously been sold at retail, when such purchase does not constitute a contract for purchase.
"Tangible personal property" means all personal property other than choses in action, securities, or printed evidences of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of his business in connection with a contract for purchase or a purchase transaction. (Ord. O-2007-28 § 2, 2007; Ord. O-2005-9 §§ 1, 2, 3, 2005; Ord. O-98-50 § 1, 1998; Ord. O-90-8 § 1, 1990; Ord. O-89-61 § 1 (part), 1989).
5.24.020 License required.
It is unlawful for any person, firm or corporation to conduct the business of
a pawnbroker within the city limits unless such person, firm or corporation
shall have first obtained a "pawnbroker's license" from the city.
(Ord. O-89-61 § 1 (part), 1989).
5.24.030 Application.
All applicants for a pawnbroker's license shall file an application for such
license with the City Clerk on forms to be provided by the Clerk. Each individual
applicant, partner of a partnership, manager of a limited liability company,
officer, director, and holder of ten percent or more of the corporate stock
of the corporate applicant or holder of ten percent or more interest in a limited
liability company, all managers, and any person with a financial interest in
the pawnbroker establishment shall be named in each application form, and each
of them shall be photographed and fingerprinted by the Lakewood Police Department;
and each of them shall furnish three letters of character reference from residents
of the city or the surrounding metropolitan area. Each individual applicant,
partnership, limited liability company, and corporate applicant shall, in addition,
furnish as an attachment to and part of such application evidence that the proposed
establishment meets the requirements of the zoning ordinance, proof of the applicant's
right to possession of the premises wherein the business of pawnbrokering will
be conducted, a Financial Questionnaire, Consent to Release Financial Information,
and a current personal financial statement or a balance sheet and income account
statement for the preceding twelve-month period prior to the date of the application.
Each corporate applicant shall furnish evidence that it is in good standing
under the statutes of the State of Colorado, or in the case of a foreign corporation,
evidence that it is currently authorized to do business in the State of Colorado.
(Ord. O-98-50 § 2, 1998; Ord. O-89-61 § 1 (part), 1989).
5.24.040 Application fee.
Each applicant, whether an individual, partnership, limited liability company,
or corporation, shall pay an application fee at the time of filing an application.
The fee shall be set by city council resolution. (Ord. O-98-50 § 3, 1998;
Ord. O-89-61 § 1 (part), 1989).
5.24.050 Investigation.
On receipt of a properly completed application, together with all information
required in connection therewith, fingerprints and photographs, and the payment
of the application and license fees, the City Clerk shall transmit the application
to the Lakewood Police Department for investigation of the background, character,
and financial responsibility of each individual applicant, the partners of a
partnership, the manager of the limited liability company, the officers, directors,
and holders of ten percent or more of the stock of a corporation or holders
of ten percent or more interest in a limited liability company, each person
named as a manager of a proposed pawnbroker's establishment, and any person
with a financial interest in the pawnbroker establishment. Each applicant shall
pay a nonrefundable investigation fee at the time the application is filed in
the amount then charged by the Colorado Department of Public Safety for each
person who will be investigated. The Lakewood Police Department shall furnish
the results of such an investigation to the City Clerk, together with a recommendation
with respect to the granting or denial or the license, and reasons therefor.
(Ord. O-98-50 § 4, 1998; Ord. O-90-8 § 2, 1990: Ord. O-89-61 §
1 (part), 1989).
5.24.060 Denial-Suspension-Revocation.
A. The application of any applicant may be denied, or an existing license may
be suspended or revoked by the City Manager or his designee, if it is shown
that the individual applicant, any partner of a partnership, the manager of
the limited liability company, any officer, director, or holder of ten percent
or more of the stock of a corporate applicant or holder of ten percent or more
interest in a limited liability company, any manager of a pawnbroker's establishment
and any person with a financial interest in the pawnbroker establishment is
not of good moral character as to reasonably assure that the operations of the
pawnbroker's establishment will be conducted lawfully and in a manner which
will not be detrimental to the public interest or well-being. Having been adjudged
in any civil or criminal proceeding to have indulged in business or trade practices
prohibited by law, or convicted of any felony or other offense involving moral
turpitude and pertinent circumstances connected therewith, shall be considered
in determining whether, in fact, an individual applicant, partner, manager of
limited liability company, director, officer, or holder of ten percent or more
of a corporate applicant's stock or holder of ten percent or more interest in
a limited liability company, or a manager of the pawnbroker's establishment,
is a person of good moral character at the time of the application, or time
of review for possible suspension or denial.
B. The fact that an individual applicant, partnership, limited liability company,
or corporation is not financially responsible, not in good standing, or not
authorized to do business in Colorado, may also be grounds for denial, suspension,
or revocation of a pawnbroker's license. As used herein, "financially responsible"
means having sufficient income and assets to defray expenses and provide for
liabilities of the business as they become due.
C. Any pawnbroker found to be in violation of any of the provisions of this
chapter may have his license suspended or revoked after notice and hearing before
the City Manager or his designee. Such suspension or revocation shall be at
the direction of the City Manager or his designee, and further, at his discretion,
and for good cause shown at a revocation or suspension hearing, the City Manager
or his designee may declare the pawnbroker ineligible for relicensing for the
purpose of carrying on the business or pawnbrokering within the city limits
at any future time. Notwithstanding the above, a pawnbroker may apply for relicensing
and present evidence of rehabilitation at an administrative hearing before the
City Manager or his designee. A pawnbroker may be granted a new license provided
the City Manager or his designee finds adequate evidence of rehabilitation was
presented to show the pawnbroker is ready to accept the responsibilities of
a law-abiding and productive member of society.
D. Any applicant or pawnbroker wishing to appeal any ruling or decision regarding
this chapter, for which a hearing pursuant to Section 5.24.315 or Subsection
C of this provision is not available, shall appeal to the City Manager. Said
appeal shall be in writing and within fourteen days of the decision or ruling
which is the subject of the appeal. The City Manager or his designee shall notify
the pawnbroker in writing of the time and place fixed by him for such hearing.
E. Every decision of the hearing officer shall be in writing, and notice thereof
shall be mailed to the pawnbroker within twenty days after such hearing, and
all such decisions shall be final. (Ord. O-98-50 § 5, 1998; Ord. O-89-61
§ 1 (part), 1989).
5.24.070 Transferability-Change of ownership-Change of
corporate structure.
Licenses issued under this chapter shall not be transferable. Any change in
the partners of a partnership or manager of a limited liability company or in
officers, directors, or holders of ten percent or more of the stock of a corporate
or holders of ten percent or more interest in a limited liability company licensee
holding a pawnbroker's license shall result in termination of the license of
the partnership, limited liability company, or corporation, unless such licensee
within thirty days of any such change, files a written notice of such change
with the City Clerk and pays a nonrefundable fee. The fee shall be set by city
council resolution. Any such change shall be reported on forms provided by the
City Clerk and shall require the names of all new partners, officers, directors,
and all holders of ten percent or more of the corporate or holders of ten percent
or more interest in a limited liability company stock who were not previously
holders of such amount of stock, all of whom shall be required to furnish, together
with such notice, all of the information required from such persons in connection
with an original application, three letters of character reference from residents
of the city or the surrounding metropolitan area, and each person shall be investigated
by the Lakewood Police Department as provided in Section 5.24.050. Grounds for
denial of any such transfer of corporate or limited liability ownership, change
of corporate or limited liability company structure, partnership, and termination
of the license thereon, shall be the same as for denial of the license under
Section 5.24.060. (Ord. O-98-50 § 6, 1998; Ord. O-89-61 § 1 (part),
1989).
5.24.080 Manager-Change of manager.
A. A pawnbroker shall employ a manager to operate a pawnbrokering business,
provided the pawnbroker retains complete control of all aspects of the pawnbrokering
business, including but not limited to the pawnbroker's right to possession
of the premises, his responsibility for all debts, and the pawnbroker must bear
all risk of loss or opportunity for profit from the business.
B. In the event a licensee changes the manager of a pawnbroker establishment,
the licensee shall immediately report such change and register the new manager
on forms provided by the City Clerk within thirty days of such change. The new
manager shall be photographed, fingerprinted, and furnish three letters of character
reference from residents within the city or within the surrounding metropolitan
area, and shall be investigated by the Lakewood Police Department as provided
in Section 5.24.050. The licensee shall pay a nonrefundable investigation fee
in the amount then charged by the Colorado Department of Public Safety and a
manager registration fee. The manager registration fee shall be set by city
council resolution. Failure of a licensee to report such a change or failure
of the manager to meet the standards and qualifications as required in Section
5.24.060 shall be grounds for termination of the license. (Ord. O-2005-9 §
4, 2005; Ord. O-98-50 § 7, 1998; Ord. 0-89-61 § 1 (part), 1989).
5.24.090 Expiration and annual renewal.
Each license issued pursuant to his chapter shall be for a period of one year
from the date of issuance, and an application for renewal shall be filed not
less than thirty days prior to the expiration of the period for which the license
is issued. A late renewal may be approved by the City Manager or his designee
if good cause is shown for the late filing of the renewal application. Copies
of the pawnbroker's balance sheets and income statements for the preceding twelve-month
period shall be submitted with each renewal application. When an application
for renewal is received in proper form by the City Clerk, the City Clerk shall
refer the renewal application to the Lakewood Police Department for investigation
and its recommendation with respect to the approval or denial of the renewal
application. An investigation shall be made by the Lakewood Police Department
unless the Chief of Police, or his designee, in his discretion, deems an investigation
unnecessary and elects to recommend approval without such investigation. (Ord.
O-98-50 § 8, 1998; Ord. O-89-61 § 1 (part), 1989).
5.24.100 Annual license fee.
The annual license fee for carrying on the business of pawnbrokering shall be
payable to the City Clerk at the time an initial application for a license is
filed or at the time a renewal application is file. Annual license fees shall
be nonrefundable unless an application is denied. The fee shall be set by city
council resolution. (Ord. O-98-50 § 9, 1998; Ord. O-89-61 § 1 (part),
1989).
5.24.110 Bond required.
Every applicant for a pawnbroker's license shall furnish a bond with a responsible
surety, to be approved by the City Manager or his designee, in the amount of
ten thousand dollars, for the benefit of the people of the city, conditioned
upon the safekeeping or return of all tangible personal property held by the
pawnbroker, as required by law and ordinance, and the due observance of the
provisions of this chapter. No license shall be issued or renewed absent such
approved bond. Termination or cancellation of an approved bond shall be grounds
for summary suspension of the license and for subsequent revocation if a new
bond is not furnished within thirty days after demand by the City Manager or
his designee. (Ord. O-89-61 § 1 (part), 1989).
5.24.120 City Manager's approval required.
The City Manager or his designee shall have final authority to approve or deny
any application or application for renewal, and to review any determination
of the City Clerk and the Lakewood Police Department made with respect thereto.
The City Manager or his designee in his discretion may issue the license or
reject the application upon the basis of the criteria heretofore set forth,
the recommendations of the Lakewood Police Department, the findings of the City
Clerk, and his determination of whether the applicant has made a sufficient
showing of good moral character, financial responsibility, experience and general
fitness to command the confidence of the public and to warrant the belief that
the business will be operated lawfully, honestly, and efficiently. (Ord. O-89-61
§ 1 (part), 1989).
5.24.140 Books and records.
A. A pawnbroker, his employee, agent, or any other person acting on his behalf
shall keep an alphabetical index of the names of customers and a numerical register
or automated format approved by the Lakewood Police Department in which the
pawnbroker, his employee, agent, or any other person acting on his behalf shall
legibly record the following information in the English language, in ink, and
contemporaneously with each contract for purchase or purchase transaction:
1. The name of the customer;
2. The address and phone number of the customer;
3. The date of birth of the customer;
4. The number of customer's valid Colorado driver's license, or one of the following
alternative forms of identification:
a. Valid Colorado identification card;
b. A valid driver's license with photograph, issued by another state
c. Military identification card;
d. Valid passport;
e. Alien registration card;
f. An identification document with no photograph, issued by the state or federal
government;
5. The date, time, and place of the contract for purchase or purchase transaction;
6. An accurate, detailed account and description of each item of tangible personal
property including but not limited to any trademark, identification number,
serial number, model number, brand name, or identifying marks on such property;
7. The signature of the customer; and
8. A clear and identifiable imprint of the customer's right index finger.
B. The pawnbroker shall obtain a written declaration of the customer's ownership
which shall state that each item of tangible personal property is totally owned
by the customer, how long the customer has owned the property, whether the customer
or someone else has found the property, and if the property was found, the details
of the finding. The customer shall sign his name in the register or other tangible
or electronic record, and the individual declaration of ownership for each item
of tangible personal property and receive a copy of the contract for purchase
or a receipt of the purchase transaction.
C. The pawnbroker shall keep the register or other tangible or electronic record
for at least three years after the date of the last transaction entered in the
register. The register shall be kept in a place which is reasonably safe from
destruction or theft.
D. Such register and other books and records of the pawnbroker shall be open
to the inspection of any Lakewood Police Department employee. Upon the demand
of such employee, the pawnbroker shall produce and show any tangible personal
property given to the pawnbroker in connection with any contract for purchase
or purchase transaction. The pawnbroker's books shall list the date on which
each contract for purchase was canceled, whether it was redeemed, or forfeited
and sold.
E. 1. Every pawnbroker shall provide the Lakewood Police Department with records,
in a format approved by the Lakewood Police Department, of all tangible personal
property accepted by the pawnbroker pursuant to a contract for purchase or a
purchase transaction and copies of each customer's declaration of ownership.
The records shall contain the same information required to be recorded in the
pawnbroker's register or other tangible or electronic record pursuant to this
section. The required information shall be mailed or otherwise delivered to
the Lakewood Police Department within seven days of each contract for purchase
or purchase transaction.
2. The reporting format of the required information shall be one of the following:
a. Forms approved by the Lakewood Police Department together with a computer
diskette containing the same information in a format approved by the Lakewood
Police Department; or
b. Forms approved by the Lakewood Police Department and electronic transmission
to the Lakewood Police Department of the same information in a format approved
by the Lakewood Police Department. (Ord. O-2005-9 § 5, 2005; Ord. O-98-50
§ 11, 1998; Ord. O-90-8 § 3, 1990; Ord. O-89-61 § 1 (part), 1989).
5.24.150 Pawn tickets.
At the time of making a contract for purchase or upon the subsequent renewal
of any contract for purchase the pawnbroker shall deliver to the customer a
pawn ticket from a bound book containing stubs, which book and stubs are correspondingly
serially numbered, and which stubs shall contain the following information:
The name and address of the licensee; a description of the pledge sufficient
to adequately identify the pledge; the date of the transaction; the amount,
duration, and terms of the contract for purchase. Language which represents
suitably Sections 5.24.150 through 5.24.170 shall appear on the back of the
pawn ticket.
The pawnbroker may insert on the pawn ticket any other terms, conditions, and
information not inconsistent with the provisions of this chapter. (Ord. O-89-61
§ 1 (part), 1989).
5.24.160 Transfer of pawn ticket generally-Transfer to
pawnbroker.
The holder of the pawn ticket shall be presumed to be the person entitled to
cancel the contract for purchase and except as provided otherwise in this chapter,
the pawnbroker shall deliver the pledge to the person presenting the pawn ticket
on payment of principal and charges and upon surrender of the pawn ticket. The
holder of any pawn ticket may transfer same to the issuing pawnbroker by writing
upon the ticket "Transferred to (name of pawnbroker)" and signing
same under such writing. The effect of transferring a pawn ticket to the issuing
pawnbroker shall be to vest in the pawnbroker such ownership and title to the
pawn ticket and the pledged property represented thereby as the holder had.
The pawnbroker may thereafter sell the pledged property in accordance with the
provisions of Section 5.24.240. Every instance of transference of a pawn ticket
to a pawnbroker shall be reported within seven (7) days to the Lakewood Police
Department as set out in section 5.24.140 E. 2. (Ord. O-98-50 § 12, 1998;
Ord. O-89-61 § 1 (part), 1989).
5.24.170 Loss of pawn ticket.
If a pawn ticket is lost, destroyed, or stolen the customer shall so notify
the issuing pawnbroker in writing. Before permitting the cancellation of the
contract for purchase or issuing a duplicate pawn ticket, the pawnbroker may,
in addition to satisfying himself of the validity of the claim, require the
customer to make an affidavit of the alleged loss, destruction, or theft of
the ticket. Upon receipt of such affidavit or statement in writing as the case
may be, the pawnbroker shall permit the customer to cancel the contract for
purchase or the pawnbroker shall deliver to the customer a duplicate ticket
and the pawnbroker shall incur no liability for doing so unless he had previously
received written notice of an adverse claim. The form of the affidavit shall
be substantially as follows:
|
AFFIDAVIT OF LOSS OF PAWN TICKET |
| STATE OF COLORADO | ) |
| ) SS: |
|
COUNTY OF |
) |
I, ______________ being first duly sworn, do depose and say:
1. I am the pledgor of a pawn ticket issued by (name of pawnbroker), numbered
____________, ("Unknown" if number is not known), and dated ("Unknown"
if date is not known).
2. The above-described pawn ticket has not been sold, negotiated, or transferred
in any other manner by me.
3. The above-described pawn ticket was (lost, destroyed, or stolen) as follows: _____________________
4. The pledge represented by this pawn ticket is (description of pledge).
Further affiant sayeth not.
________________________
Affiant
Subscribed and sworn to before me this _____ day of __________, 20
________________________
Notary Public
________________________
My Commission expires:
(Ord. O-89-61 § 1 (part), 1989).
5.24.180 Adverse claims.
If more than one person claims the right to cancel a contract for purchase the
pawnbroker shall incur no liability for refusing to deliver the pledge until
the respective rights of the claimants are adjudicated. If no action is brought
against the pawnbroker by either party prior to the expiration of the period
for which he is required under Section 5.24.230 to hold the pledge, he may proceed
to sell the pledge in accordance with the provisions of this chapter. (Ord.
O-89-61 § 1 (part), 1989).
5.24.190 Altered pawn ticket.
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 ticket as
originally issued, but shall relieve him from any other liability to the pledgor
of the ticket. (Ord. O-89-61 § 1 (part), 1989).
5.24.200 Seizure of counterfeit or reportedly lost pawn
ticket-Seizure of counterfeit or fraudulent identification.
A. If a ticket is presented to a pawnbroker which purports to be one issued
by him but which is found to be counterfeit or which has been reported to him
as lost, stolen or destroyed, the pawnbroker may seize and retain the same without
any liability whatsoever to the holder thereof. Upon such occasion, the pawnbroker
shall immediately notify the Lakewood Police Department. The Lakewood Police
Department shall then place a hold order on the pawn ticket so seized, as set
out in Section 5.24.250, and pledged property, identified in said pawn ticket,
shall be held by the pawnbroker until such time as the lawful disposition of
the pledged property is either agreed upon, determined by a court action, or
directed by ordinance or statute, or the hold order is either ordered released
by the Lakewood Police Department or has expired.
B. If a pawnbroker has reason to believe a customer is exhibiting counterfeit
or fraudulent identification, the pawnbroker or his employee, acting in good
faith and upon probable cause based upon reasonable grounds therefor, may seize
such identification without incurring civil or criminal liability as a result
of such seizure, provided the pawnbroker immediately gives such identification
to the Lakewood Police Department. (Ord. O-98-50 § 13, 1998; Ord. O-89-61
§ 1 (part), 1989).
5.24.210 Interest rate-Commission.
No pawnbroker shall ask, demand, or receive any greater rate of interest, commission,
and compensation than the total rate of one-fifth of the original purchase price
for each month, plus the original purchase price. The pawnbroker may charge
the customer for any transaction fee imposed by Section 5.24.370. No other charges
shall be made by the pawnbroker upon renewal of any contracts for purchase or
at any other time. In the event any such charges are made, the contract shall
be void. Any contract for the payment of commissions by the customer for making
a contract for purchase on tangible personal property shall be null and void.
(Ord. O-2005-9 § 6, 2005; Ord. O-98-50 § 14, 1998; Ord. O-89-61 §
1 (part), 1989).
5.24.220 Intermediate payments-Receipts.
The pawnbroker shall accept intermediate payments, without penalty, upon contracts
for purchase which have not yet matured when presented with the pawn ticket,
and shall treat the amount tendered as a payment upon the existing contract
for purchase. A receipt showing the date and the amount of the payment shall
be given for all moneys received on account of or in payment of the contract
for purchase, and the date and amount of each such payment shall be entered
upon the proper serially numbered stub in the bound book required to be kept
by Section 5.24.140 at the time of each such payment. The total amount of money
presented shall be applied against the amount of indebtedness. In no event shall
any late charges, collection fees or other such service charges be deducted
from the amount of the payment tendered to the pawnbroker. (Ord. O-89-61 §
1 (part), 1989).
5.24.230 Property held-Time limit-Sale of unredeemed articles.
A. The pawnbroker shall hold tangible personal property purchased by him through
a purchase transaction for thirty days following the date of purchase, during
which time such property shall be held separate and apart from any other tangible
personal property and shall not be changed in form or altered in any way.
B. The pawnbroker shall hold all tangible personal property pledged as security
on a contract for purchase in his possession during the term of the contract
for purchase, plus a period of ten days following the maturity date of the contract
for purchase, during which time such goods shall be held separate and apart
from any other tangible personal property and shall not be changed in form or
altered in any way.
C. If the pledgor fails or neglects to cancel the contract for purchase by repayment
of the balance of the principal and payment of all accrued interest charges,
the pawnbroker shall mail a notice to the pledgor after the maturity date of
the contract for purchase to the address designated in the books and records.
The notice shall give the number of the pawn ticket, a description of the property
pledged, and shall notify the pledgor that the contract for purchase must be
canceled within ten days from the date of the notice, and specify the date,
and that upon his failure to cancel the contract for purchase by that date,
the pledged property shall be deemed forfeited to the pawnbroker and the right
of the pledgor to cancel the contract for purchase shall be terminated. Such
notice shall be in the form substantially as follows:
Lakewood, Colorado, _________________ 20 .
To: (Name) _______________________
(Street address) _________________________
(City, State, Zip Code) ____________________________
You are hereby notified to cancel the contract for purchase on or before ten days from the above date, to wit: (Date), or the pledged property will be forfeited to the pawnbroker under the contract for purchase and your rights to the pledged property will thereafter be terminated. Your pawn ticket is No. , the property pledged by you as security is described as follows:
(general description of property) ______________________________________
(Pawnbroker) __________________________________________
(Pawnbroker's address) __________________________________________
D. The pawnbroker shall retain in his records the original notice, in its
unopened envelope, if returned to the pawnbroker. If notwithstanding the notice
the person making the contract for purchase fails to cancel the contract for
purchase within the ten-day period designated in the notice, all right, title
and interest of the pledgor to the pledged property shall be forfeited to the
pawnbroker who shall acquire title to the property, and the debt become satisfied.
(Ord. O-98-50 § 15, 1998; Ord. O-89-61 § 1 (part), 1989).
5.24.240 Sale of articles represented by pawn tickets transferred
to pawnbroker.
Any tangible personal property deposited with a pawnbroker as security for a
contract for purchase represented by a pawn ticket which has been transferred
to the pawnbroker in accordance with Section 5.24.160 may be sold by the pawnbroker
thirty days after such transference and appropriate notification to the Lakewood
Police Department. (Ord. O-89-61 § 1 (part), 1989).
5.24.250 Hold order.
Any authorized agent of the Lakewood Police Department may order a pawnbroker
to hold any tangible personal property deposited with or in the custody of any
pawnbroker for purposes of further investigation by the Lakewood Police Department.
A hold order shall be effective upon verbal notification to the pawnbroker by
an authorized agent of the Lakewood Police Department and shall be for a period
of ninety days. The hold order may be extended for an additional period of ninety
days by the Lakewood Police Department for good cause. Written notice by facsimile
of the hold order shall be provided to the pawnbroker within seventy-two hours
of the verbal notification, unless the end of the seventy-two hour period falls
on a Saturday, Sunday or holiday, in which event the written notification of
the hold order shall be provided to the pawnbroker on the following Monday or
the next business day following a holiday. A hold order shall supersede the
provisions of Sections 5.24.230 and 5.24.240, and no sale or other disposition
may be made of any tangible personal property deposited with or in the custody
of the pawnbroker while the hold order remains in effect. Any sale or other
disposition of the property after the pawnbroker has been notified by the Lakewood
Police Department of a hold order shall be unlawful and a violation of this
provision. (Ord. O-2005-9 § 7, 2005; Ord. O-98-50 § 16, 1998; Ord.
O-89-61 § 1 (part), 1989).
5.24.260 No deficiency or offsets permitted.
The pawnbroker shall look to the property pledged for payment of the contract
for purchase and in no event shall the pawnbroker look to the personal credit
of the pledgor. No set-off shall be allowed the pawnbroker against the surplus
or deficit arising out of another contract for purchase between the parties.
In no event shall any deficiency balances be collected by the pawnbroker and
in the event that such an attempt is made, the entire transaction shall be void.
(Ord. O-89-61 § 1 (part), 1989).
5.24.270 Unlawful transactions.
A. It is unlawful for any pawnbroker, his employee, agent, or any other person
acting on his behalf to make a contract for purchase, acquire a pawn ticket
by transfer, or make a purchase transaction with the following:
1. Any person under eighteen years of age;
2. Any person under the influence of alcohol, or any narcotic drug, stimulant
or depressant;
3. Any person known by such pawnbroker to have been convicted of a felony, without
first notifying the Lakewood Police Department;
4. Any person appearing to the pawnbroker to be in an abnormal mental state;
5. Any person whose actions would give the pawnbroker probable cause to believe
the tangible personal property, which is the subject of a contract for purchase
or purchase transaction with that customer was obtained illegally;
6. Any person in possession of tangible personal property, which is the subject
of a contract for purchase or purchase transaction, with an identification number
thereon which is obscured. For the purposes of this subsection the term "identification
number" means a serial or motor number placed by the manufacturer or owner
upon an article as a permanent individual identifying mark and "obscure"
means to destroy, remove, alter, conceal or deface so as to render illegible
by ordinary means of inspection.
B. With respect to a contract for purchase, no pawnbroker may permit any customer
to become obligated on the same day in any way under more than one contract
for purchase agreement with the pawnbroker which would result in the pawnbroker
obtaining a greater amount of money than would be permitted if the pawnbroker
and customer had entered into only one contract for purchase covering the same
tangible personal property.
C. No pawnbroker shall violate the terms of any contract for purchase. (Ord.
O-98-50 § 17, 1998; Ord. O-90-8 § 4, 1990; Ord. O-89-61 § 1 (part),
1989).
5.24.280 Unlawful to pawn certain items.
It is unlawful for any pawnbroker to accept in pledge, buy, sell, or display
in his place of business any switchblade knife, any knife whose blade is detachable
from its handle, any knife whose blade opens by any mechanical means, any gravity
knife, any throwing star, any brass or metallic knuckles or other items commonly
used for and designed for the purpose of beating or striking others, any nunchaku,
blackjack, or billy club, property with missing or altered serial numbers, or
any other property which is illegal to possess. (Ord. O-89-61 § 1 (part),
1989).
5.24.290 Safekeeping-Insurance.
Any pawnbroker licensed and operating under the provisions of this chapter shall
provide a safe place for the keeping of pledged property received by him, and
shall have sufficient insurance on the pledged property held by him for the
benefit of the pledgor to pay fifty percent of the real value thereof in case
of fire, theft, or other casualty loss, which policy shall be deposited with
the City Manager or his designee prior to approval of the license. Neither the
pawnbroker nor surety shall be relieved from their responsibility by reason
of such fire, theft, or other casualty loss, nor from any other cause, save
full performance. (Ord. O-89-61 § 1 (part), 1989).
5.24.300 Accepting lost or stolen articles.
A pawnbroker who accepts in pledge any tangible personal property as security
for a contract for purchase from one who is not the owner thereof, obtains no
title in the property either by reason of a pledgor's failure to cancel the
contract for purchase or by transference of the pawn ticket to the pawnbroker
by the pledgor thereof. Ignorance of the fact that the pledged property was
lost or stolen shall not be construed to affect the question of title; and if
the pawnbroker shall sell such article to a third person, he shall remain liable
to the original owner in any appropriate legal action. The lawful owner may,
upon proving his ownership of the lost or stolen property claim the same from
the pawnbroker or recover the same by means of any appropriate legal action.
(Ord. O-89-61 § 1 (part), 1989).
5.24.310 Seized property held by Police-Administrative
hearing to determine possession.
A. When stolen property which was seized from the pawnbroker, without the written
consent of the pawnbroker, his employee, agent, or any other person acting on
his behalf, and held by the Lakewood Police Department as evidence is no longer
needed as evidence and there is no court order which concerns its disposition,
the Lakewood Police Department shall notify the pawnbroker, the person claiming
to be the lawful owner of the property, and any other person who has notified
the Lakewood Police Department in writing of his claim of an interest in the
property, of the right to an administrative hearing to determine who is entitled
to possession of the stolen property. Such notice shall be sent by the Lakewood
Police Department to such persons by certified mail, return receipt requested.
A request for an administrative hearing shall be filed in writing with the Lakewood
Police Department within fourteen days after the date the notice was mailed
by the Lakewood Police Department. The written request must include the person's
current address and a daytime telephone number, or in the case of a pawnbroker,
his business address and telephone number.
B. In the event no request for a hearing regarding possession of the property
in question is received by the Police Department within the time set out above,
the Lakewood Police Department shall return the property to the person claiming
to be the lawful owner of such property, not to the pawnbroker (Ord. O-98-50
§ 18, 1998).
5.24.315 Conduct of hearing regarding right to possession
of seized property.
A. A hearing to determine the right to possession shall be conducted before
a hearing officer designated by the City Manager within seventy-two hours of
the Lakewood Police Department's receipt of a written request for a hearing,
unless the person requesting the hearing waives the right to a speedy hearing.
Weekends and holidays are to be excluded from the calculation of the seventy-two
hour period.
B. The hearing shall be conducted in an informal manner and shall not be bound
by formal rules of evidence. The hearing officer may receive all or any part
of the evidence in written form. The person demanding the hearing shall carry
the burden of establishing by a preponderance of the evidence that such person
has the right to possession of the property. The City does not warrant title
to the disputed property by its decision.
C. At the conclusion of the hearing, the hearing officer shall prepare a written
decision stating who is entitled to possession of the property. A copy of the
written decision shall be mailed first class mail, postage prepaid, to the pawnbroker,
the person claiming to be the lawful owner of the property, and to any person
known to claim an interest in the property. The decision of the hearing officer
shall be final and any appeal shall be to the Jefferson County District Court.
The property shall be returned to the person determined to have the right to
possession within thirty days after the date of the hearing officer's decision
or at such time as any appeals have been exhausted. (Ord. O-98-50 § 19,
1998).
5.24.320 Liability for pledged property.
A pawnbroker shall be liable for the loss of pledged property or part thereof,
or for injury thereto, whether caused by fire, theft, burglary, or otherwise,
as a result of his failure to exercise reasonable care in regard to it. A pawnbroker
shall not be liable, in the absence of an expressed agreement to the contrary,
for the loss of or injury to pledged property which could not have been avoided
by the exercise of due care. Nothing herein shall affect the right of the pledgor
to insurance proceeds on such property. (Ord. O-89-61 § 1 (part), 1989).
5.24.330 Removal of place of business.
A. No license shall be valid for any location other than the location for which
it is issued, except as hereinafter provided.
B. Removal of a pawnbroker's place of business shall be permitted under the
same license in accordance with the following procedure:
1. A pawnbroker wishing to move his place of business within the city shall
give written notice thereof to the City Clerk no less than thirty days prior
to the date of relocation.
2. The City Clerk shall enter an order permitting the change and amend the license
accordingly if she finds the licensee has the right to possession of the proposed
location and the location is reasonably accessible to the existing customers.
If the City Clerk does not so find, she shall issue an order denying the pawnbroker
such permission and notify the pawnbroker of the reason for the denial.
3. If permission is denied, the pawnbroker may within ten days following notice
of denial file a written request for review thereof with the City Clerk. The
denial shall then be reviewed by the City Manager or his designee, who shall
have authority to affirm or reverse the denial.
4. In the event the City Clerk approves the relocation, the pawnbroker shall
mail written notice to each customer with whom the pawnbroker has an existing
contract for purchase. Such notices shall be mailed at least fifteen days prior
to the date of relocation. Any undelivered notice returned to the pawnbroker
shall be retained in the records of the pawnbroker in the unopened envelope.
The pawnbroker shall file an affidavit of mailing with the City Clerk together
with a sample copy of the notice of relocation. (Ord. O-89-61 § 1 (part),
1989).
5.24.340 Investigation-Right of entry.
A. For the purpose of investigating violations of this chapter, any authorized
agent of the Lakewood Police Department may at any reasonable time investigate
the business and examine the books, accounts, papers, and records of any licensed
pawnbroker or any person, partnership, or corporation which engages in the business
of pawnbrokering within the city.
B. Application for or acceptance of a license by a pawnbroker under the terms
and provisions of this chapter shall constitute a continuing consent to entry
by any authorized agent of the Lakewood Police Department upon the pawnbroker's
premises for the purpose of investigating the business and examining the books,
accounts, papers, and records used therein, at any time during the term of the
license, during regular business hours or whenever the pawnbroker, his employee,
or agent is upon the premises, without compliance with the provisions of Chapter
1.12 of this code. Willful failure or refusal by the pawnbroker, his agent,
or employee to permit entry upon the premises by any authorized agent of the
Lakewood Police Department as provided herein, after presentation of credentials
and demand for entry, is a violation of this provision and shall be grounds
for revocation of the pawnbroker's license. (Ord. O-89-61 § 1 (part), 1989).
5.24.350 Hours.
Pawnbroker establishments may be open for business only between the hours of
8:00 o'clock a.m. and 9:00 o'clock p.m. It shall be unlawful for a pawnbroker
establishment to be open for business during any time other than the hours set
forth herein. (Ord. O-98-50 § 20, 1998).
5.24.360 Videotape and photograph requirements.
Every pawnbroker shall videotape all transactions, including those which do not result in a contract for purchase or purchase transaction. The face of each customer who enters into a purchase transaction or contract for purchase shall be digitally photographed. The videotape and photograph shall be in a format approved by the Lakewood Police Department and of such quality that it clearly displays an identifiable frontal image of the customer. Any such videotape shall be kept by the pawnbroker for a minimum of ninety (90) days and shall be subject to police review. If the videotape contains photographic evidence, it shall be held for one hundred and eighty (180) days. (Ord. O-2007-28 § 3, 2007; Ord. O-98-50 § 21, 1998).
5.24.370 Transaction Fee.
A. Every pawnbroker shall pay to the City a transaction fee for each transaction
involving a contract for purchase or purchase transaction. A transaction is
limited to three (3) items of tangible personal property per ticket. The transaction
fee shall be set by city council resolution.
B. For the purposes of the imposition of said transaction fee, a parcel of articles
offered as one item and purchased for one set price shall be considered to be
one item of tangible personal property. Tangible personal property with identifying
marks on such property, including but not limited to any identification number,
serial number, model number, or inscription, shall be individually itemized.
C. Individual components of a stereo or computer system shall be individually
itemized. However, when a stereo or computer system is being offered as one
item and purchased for one set price, only one transaction fee shall be imposed.
(Ord. O-98-50 § 22, 1998).
5.24.380 Recovery of transaction fees, penalty, and interest.
A. All sums of money paid by the purchaser to the pawnbroker as transaction
fees imposed by this chapter shall be and remain public money, the property
of the city, in the hands of such pawnbroker, and he shall hold the same in
trust for the sole use and benefit of the city until paid to the Finance Director.
B. 1. If a pawnbroker neglects or refuses to pay any transaction fee as required
by this chapter, then the Finance Director shall make an estimate, based upon
such information as may be available, of the amount of transaction fees due
for the period for which the pawnbroker is delinquent and shall add thereto
a penalty equal to the sum of fifteen dollars for such failure or ten percent
thereof and interest on such delinquent transaction fee at the rate imposed
under Section 5.24.400 plus one-half percent per month from the date when due,
not exceeding eighteen percent in the aggregate.
2. Promptly thereafter, the Finance Director shall give to the delinquent pawnbroker
written notice of such estimated transaction fee, penalty, and interest, which
notice shall be sent by first-class mail directed to the last address of such
pawnbroker on file with the Office of the City Clerk. Such estimate shall thereupon
become a notice of deficiency.
C. The Finance Director is authorized to waive, for good cause shown, any penalty
as provided in this chapter, and any interest imposed in excess of the rate
determined pursuant to subsection B. of this section shall be deemed a penalty.
(Ord. O-98-50 § 23, 1998).
5.24.390 Transaction fee deficiency.
If the deficiency in payment of the transaction fee occurs without intent to
defraud, there shall be added ten percent of the total amount of the deficiency,
and interest in such case shall be collected at the rate imposed under Section
5.24.410 on the amount of such deficiency from the time the payment was due,
from the pawnbroker, which interest and addition shall become due and payable
twenty days after written notice and demand to such pawnbroker by the Finance
Director. (Ord. O-98-50 § 24, 1998).
5.24.400 Interest rate on delinquent transaction fees.
When interest is required or permitted to be charged under this chapter, the
annual
rate of interest shall be that rate of interest established by the State Commissioner
of Banking pursuant to Section 39-21-110.5 of the Colorado Revised Statutes.
(Ord. O-98-50 § 25, 1998).
5.24.410 Interest on underpayment, overpayment, nonpayment
or extensions of time for payment of transaction.
A. If any amount of a transaction fee is not paid on or before the last date
prescribed for payment, then interest on such amount at the rate imposed under
Section 5.24.400 shall be paid for the period from such last date to the date
paid. The last date prescribed for payment shall be determined without regard
to any extension of time for payment and shall be determined without regard
to any notice and demand for payment issued, by reason of jeopardy, prior to
the last date otherwise prescribed for such payment. In the case of a transaction
fee in which the last date for payment shall be deemed to be the date that the
liability for the transaction fee arises, and in no event shall such date be
later than the date that notice and demand for the transaction fee is made by
the Finance Director.
B. Interest prescribed under this section and Sections 5.24.380(B) and 5.24.390,
shall be paid upon notice and demand and shall be assessed, collected, and paid
in the same manner as the transaction fee to which such interest is applicable.
C. If any portion of a transaction fee is satisfied by credit of an overpayment,
then no interest shall be imposed under this section on the portion of the transaction
fee so satisfied for any period during which, if the credit had not been made,
interest would have been allowed with respect to such overpayment. (Ord. O-98-50
§ 26, 1998).
5.24.420 Other remedies.
No provision of this chapter shall preclude the city from utilizing any other
lawful penalties or other remedies applicable to the collection of transaction
fees. The Finance Director shall have the authority to make a compromise settlement
of any claim for transaction fees due under this chapter. (Ord. O-98-50 §
27, 1998).
5.24.430 Review by District Court.
If the pawnbroker is aggrieved at the final decision of the hearing officer,
then he may proceed to have same reviewed by the District Court. The procedure
of review shall be in accordance with Colorado Rules of Civil Procedure 106.
(Ord. O-98-50 § 28, 1998).
5.24.440 Penalty.
It shall be unlawful for any person to violate a provision of this Chapter.
A person is criminally liable for conduct constituting an offense which he performs
or causes to occur in the name of or on behalf of a pawnbroker to the same extent
as if such conduct were performed or caused by him in his own name or behalf.
Violators shall be subject to the penalties set forth in Chapter 1.16 of the
Lakewood Municipal Code. (Ord. O-98-50 § 29, 1998).
5.24.450 Rules and regulations.
Rules and regulations may be promulgated by the City to further effectuate the
terms of this chapter. (Ord. O-98-50 § 30, 1998).
5.24.460 Location of Pawnbroker Businesses.
A. The business premises of a pawnbroker business shall not be located within
one (1) mile of the business premises of another pawnbroker business. This restriction
shall apply to all pawnbroker business licenses issued under this Chapter 5.24
after the effective date of this Ordinance O-2005-13, which date is May 15,
2005. This restriction shall not apply to the renewal of an existing pawnbroker
business license nor shall it apply to the issuance of a pawnbroker license
for an applicant who has received a City building permit prior to the effective
date of this ordinance for a structure in which a pawnbroker business shall
be located.
B. For the purpose of this subsection, the distance between pawnbroker businesses
shall be measured in a straight line, without regard to intervening structures,
objects, or City limits, from the closest exterior wall of one pawnbroker business
to the closest exterior wall of the other pawnbroker business. (Ord. 2005-13
§ 1, 2005).
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