HomeMy WebLinkAboutOrdinance-1977-0224 - Operation and Licensing of Pawnbrokers and PawnshopsINTRODUCED BY COUNCILPERSON
CAVARRA
ORDINANCE NO. 224
Series of 1976
TITLL
AN ORDINANCE PROVIDING FOR THE OPERATION AND LICENSING
OF PAWNBROKERS AND PAWNSHOPS
Be it ordained by the City Council of the City of 1Vheat
Ridge, Colorado, that:
Section 1. DEFINITIONS
(a) A "pawnbroker" is any
person, firm or corporation who
(1) Engages in the business
of lending money on deposit or pledge of personal property,
other than choses in action, securities, or evidence of
indebtedness; or (2) Purchase,, personal property with an
expressed or implied agreement or understanding to sell it
back at a stipulated price. Any pawnbroker may effect the
purchase of secondhand personal property for resale purposes
under the terms of this section by acquiring any pawn ticket
of his own issue by transfer. A pawnbroker may supplement his
business of pawnbroking by engaging in the sale of new
merchandise purchased through ordinary channels of trade.
(b) "Pawnbrokering" means the business of a pawnbroker
as defined by subsection (a) of this section.
(c) "Pledge" means any article or articles deposited with
a pawnbroker as security for a loan in the course of his
business as defined in the preceding paragraph.
(d) "P1edoor" means the person who delivers a pledge into
the possession of a pawnbroker. If a person discloses that he
is or was acting for another, "pledger" means the disclosed
principal.
Section 2. LICENSE REQUIRED. It is unlawful for any
person, firm or corporation to conduct the business of pawn-
broker within the city limits unless such person, firm or
corporation shall have first obtained a "pawnbroker's license"
from the city.
ORDINANCE NO. 224
Section 7. APPLICATION. All applicants for a pawnbroker's
license shall file application for such license with the Citv
Clerk on forms to be provided by the Clerk. Each individual
applicant, partner of a partnership and officer, director and
holder of ten percent or more of the corporate stock of a
corporate applicant, and all managers, shall be named in each
application form, and each of them shall be photographed and
fingerprinted by the City 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, and each partnership and corporate
applicant shall in addition furnish as an attachment to and
part of such application a current balance sheet and income
account statements for the next preceding twelve-month period
prior to the date of application.
Section 4. APPLICATION FEE. Each applicant, whether
individual, partnership or corporate, shall pay an application
fee of fifty dollars at the time of filing of application.
This fee shall be in addition to the annual fee.
Section S. INVESTIGATION. On receipt of a properly
completed application, together with all data required in
connection therewith, and fingerprints and photographs, and
the payment of the application fee, the Citv Clerk shall refer
the application to the City Police Department for investigation
of the background, character and financial responsibility of
each individual applicant, and of the partners of a partnership,
the officers, directors and holders of ten percent or more of
the stock of a corporation, and each person named as a manager
of a proposed pawnbroker's establishment.
The City Police Department shall furnish the results of
such investigation to the City Clerk, together with recommen-
dations with respect to the granting or denial of license, and
reasons therefor.
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Section b. DENIAL - SUSPENSTON - REVOCATION. The
application of any applicant may be denied by the Mayor, or
an existing license may be suspended or revoked by the Mayor
after notice and hearing, if it appears that the individual
applicant, or any partner of a partnership, or any officer or
director of a corporation, or holder of ten percent or more of
the stock of a corporatio,, or any manager of a pawnbroker's
establishment, is not of such 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, or has 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 the individual applicant, manager,
partner, director or holder of ten percent or more of the
applicant's stock is a person of good moral character at the
time of the application, or time of review for possible
suspension or denial.
The fact that the individual applicant, partnership or
corporation is not financially responsible 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 on the basis of sound fiscal
management, as well as provide for the payment of debts in a
timely manner as the same accrue or become due. Any pawnbroker
having been found guilty of a violation of any of the provisions
of this section may have his license suspended or revoked after
notice and hearing. Such suspension or revocation shall be at
the direction of the T1ayor, and further, at the discretion
of the Mayor, and for good cause shown at a revocation or
suspension hearing, may be stated in such terms that the
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pawnbroker shall not be eligible for relicensin" for the
purpose of carrying on the business of pawnbrokering within
the city limits at any future time.
Section 7. TRANSFERABILITY
section shall be nontransferable
Licenses issued under this
Any change in the partners
of a partnership or in officers or directors or owners of ten
percent or more of the corporate stock of a corporation shall
result in termination of license of the partnership or
corporation, unless such partnership or corporation, within
thirty days of any such change, files with the City Clerk a
written notice of such change and pays a twenty-five dollar
fee. Such notice shall give the names of all new partners,
officers, directors and all holders of ten percent or more of
the corporate 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 to
such persons in connection with an original application, and
letters of reference, and each of such persons shall be photo-
graphed and fingerprinted.
In the event that the foregoing requirements are met
within such thirty-day period, the Clerk shall refer such
information to the Department of Public Safety, which shall
conduct an investigation and make recommendations in the same
manner and on the same basis as if the application were an
original application.
Grounds for denial of any such transfer of corporate
ownership, partnership or management and termination of license
thereon shall be the same as for denial of license under
Section 6.
Section S. CHANGE OF MANAGERS. In the event of a
change in managers, disclosure shall be made and the new
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manager shall be photographed, fingerprinted and furnish
reference letters and be investigated as above provided.
Failure of a manager to meet the standards and qualifications
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above prescribed shall be grounds for termination of license.
Section 9. EXPIRATION AND ANNUAL RENEWAL. Lach license
issued pursuant to this section shall be for the period of
one year from the date of issuance, and application for
renewal shall be made not less than thirty days prior to
the expiration of the period for which the license is issued.
Copies of current balance sheets and income statements shall
be required with each application for renewal; and when
application for renewal is received in proper form, together
with an application fee in the amount of twenty-five dollars,
the Citv Clerk shall refer such renewal application to the
City Police Department for investigation and recommendation.
Investigation shall be made by the City Police Department and
recommendation shall be made to the City Clerk unless the
Police Chief in his discretion, deems an investigation un-
necessary, and elects to recommend renewal without such
investigation.
Section 10. LICENSE FEE. The annual license fee for
carrying on the business of pawnbrokering shall be two hundred
dollars, payable to the City Clerk in advance of the issuance
of any license or renewal license, and shall be nonrefundable.
Section 11
BOND REQUIRED. Every applicant for a
pawnbroker's license shall furnish a good and sufficient bond
with two good and sufficient securities to be approved by the
Mayor in the amount of ten thousand dollars for the benefit of
the people of the state and of any person or persons having
rights, claims or actions against the pawnbroker; conditioned
upon the safekeeping or return of all articles held in pledge
by the pawnbroker, as required by law and ordinance, and the
due observance of the provisions of this section; and no license
shall issue or be renewed absent such bond; and the termination
or cancellation of such bond shall be ground for summary
suspension of the license and for revocation if a new bond is
not furnished.
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Section 12. MAYOR'S APPROVAL nnUIRLn. The ;`Mayor shall
have final authority to approve or deny any application or
application for renewal, and to review any determination of
the City Clerk made with respect thereto.
The mayor in his discretion may issue the license or
reject the application upon the basis of the criteria hereto-
fore set forth, the recommendations of the City Police
Department, the findings of the City Clerk, and his determination
of whether the application has made a sufficient showing of
good 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, fairly and efficiently.
Section 13. TRANSFER OF LOCATION. No license shall be
valid for any location other than the location for which
issued.
Section 14. BOOKS AND RECORDS. Every pawnbroker shall
keep books and other records in a manner satisfactory to the
Chief of Police in which shall be recorded contemporaneously
with each loan transaction and in the order in which the loan
transactions occur: The name and address of the pledgor and
his (or her) sex, age, and social security number; or where
the pledge is made by a person acting as an agent for a
disclosed principal, the names and addresses of the principal
and agent; an accurate physical description of the pledgor and
other pertinent information about the pledgor such as make
and license number of his automobile, if any; the date of the
transaction; the amount and terms of the loan; the article or
articles pledged; and the serial number of the loan. Such
books and records shall be open to the inspection of any law
enforcement agent, to the inspection of the Mayor, or any
person who is duly authorized in writing by the Mayor, who
exhibits such written authority to the pawnbroker. Upon the
demand of such agent, the pawnbroker shall produce and show
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any article pledged in connection with any loan. The books
and records of the licenses shall also reveal the date on which
each loan was cancelled, whether it was redeemed, renewed or
forfeited and sold. All such books and records shall have
consecutively-numbered pages and shall. be recorded neatly,
legibly and in ink, or typed by typewriter.
Section 15. NOTIFICATION OF IMPENDING SALE OF UNREDEEMED
PANNED ARTICLES. The pawnbroker shall retain the pledge in
his possession six months after the maturity of the loan. Upon
failure to redeem the pawned and pledged property within the
time period above designated, all rights and title and interest
of the pledgor and/or holder of the pawn tickets in and to
such pawned property shall be forfeited to the pawnbroker, who
shall thereby acquire such title to the same as was vested in
such pledger or holder, and the debt becomes satisfied.
Section 16. UNLAIUFUL TRANSACTIONS. It is unlawful for
any pawnbroker to accept any articles in pawn or purchase
any secondhand property by acquiring a pawn ticket by trans-
Terence from the following:
(1) Any person under twenty-one years of age;
(2) Any person under the influence of alcohol, or
any narcotic drug, or stimulant, or depressant,
(3) Any person known to such pawnbroker to be a
thief, or to have been convicted of a felony, without -first
notifying the Chief of Police or an agent of the City Police
Department.
(4) Any person appearing to the pawnbroker to be
in an abnormal mental state.
Section 17. UNLAWFUL TO PAIVN CERTAIN WEAPONS. It is
further unlawful for any pawnbroker to accept in pledge, buy,
sell or display in his place of business any springknife,
commonly called a switchblade, any knife whose blade is
detachable from its handle, or any knife whose blades open
by any mechanical means, any blackjack, billy club, brass
ORDINANCE NO. 224
knuckles or other items commonly used for and designed for
the purpose of heating or striking others.
Section 18. SAFEKEEPING - INSURANCE. Any pawnbroker
licensed and operating under the provisions of this section
shall provide a safe place for the keeping of pledges received
by him, and shall have sufficient insurance on the property
held by him as pledgee, for the benefit of the pledcor of the
property, 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 Mayor. Neither the pawnbroker nor bonds-
men shall be relieved from their responsibility by reason of
such fire, nor from any other cause, save full performance.
Section 19. FORM OF RECORD BOOK. The book to be kept
by all persons making loans, as mentioned herein, shall be a
hardbound book and shall be ruled in blank as per form here
attached and made a part of this section. The entries therein
shall be in the English language and have alphabetical index
of the names and the pledgors. Such book shall be kept in a
safe or other place that is reasonably safe from fire or theft.
Section z0. HOURS. It is unlawful for anv pawnbroker to
open for business or operate the establishment wherein the
business of pawnbrokering is carried on after six p.m. or
before eight a.m. on any day.
Section -11. ACCEPTING LOST OR STOLEN ARTICLES. A pawn-
broker who accepts in pledge any article or articles as security
for a loan from a pledgor, who is not the owner thereof, obtains
no title in the article or articles either by reason of the
maturation of the loan or by transference of the pawn ticket
to the pawnbroker by the pledger or holder thereof. Ignorance
of the fact that the pledged article or articles were 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,
lie shall remain liable to the original owner in an action in
the nature of trover. The lawful owner may, upon proving his
ownership of the article or articles lost or stolen, and so
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pledged by any person having only color of title, claim the
same from the pawnbroker or recover the same by means of an
appropriate action in the nature of replevin.
Section 22. NOTICE TO CITY POLICE DEPARTMI":T 01 STOLEN
ITEMS. In the event that any person shall approach a pawnbroker
and attempt to pledge or sell, to the pawnbroker, items which
the pawnbroker has reason to believe have been stolen, it shall
be the duty of the pawnbroker to immediately notify the City
Police Denartment, giving a description of the person making
such attempts, and the property that such person attempted to
pledge or sell. It is an unlawful act for a pawnbroker to fail
to notify the City Police Department under the situation
described in this section, if it can be shown that the pawn-
broker could reasonably have had knowledge that the items
pawned were stolen or obtained in any other unlawful manner.
Section 23. PENALTY. Any person who shall violate any
of the provisions of this Ordinance shall be guilty of a
violation of this Ordinance and shall be punished by a fine
not to exceed $300.00 and/or 90 days imprisonment in the
County jail.
Section 24
The provisions of this Ordinance are necessary
for the immediate preservation of the public health, safety and
welfare of the citizens of the City of Wheat Ridge, Colorado.
Section 25. Effective Date. This Ordinance shall take
effect thirty days (30) after publication following final passage.
INTRODUCED, READ, ADOPTED AND ORDERED PUBLISHED ON FIRST
READING by a vote of 5 to 0, this 13th day of December , 1976 .
READ, ADOPTED AND ORDERED PUBLISHED ON SECOND A,ID FINAL
READING by a vote of 6 to 0, this 10th day of January
. 1977 .
Signed by the Mayor of Wheat Ridge, Colorado, on the 12th
day of Janua
, 197 7 .
an Stites, Dlayor - j.eo
ATTEST:
El`i"se Brougham, City Clerk
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