§ 22-138. Pawn transactions.

(a)

License required.

(1)

Every person doing business in the city as a pawnbroker shall make proper application for and receive the appropriate business license to conduct business within the city prior to commencing business.

(2)

The permitting and licensing scheme for pawnbrokers shall be the same as set forth in code subsections 22-137(c) and (d).

(b)

Recordkeeping.

(1)

Every pawnbroker, including any business that purchases any used or pre-owned goods or merchandise from persons or sources other than manufacturers, manufacturer's representatives or other dealers of said goods or merchandise, shall maintain a permanent record book in which shall be entered in legible English at the time of each loan, purchase or sale:

a.

The date of the transaction;

b.

The name of the person conducting the transaction;

c.

The name, age, and address of the customer; a description of the general appearance of the customer and the distinctive number from the customer's driver's license or other similar identification card;

d.

An identification and description of the pledged or purchased goods, including, if reasonably available, the serial, model, or other number and all identifying marks inscribed thereon;

e.

The number of the receipt or pawn ticket;

f.

The price paid or the amount loaned;

g.

If payment is made by check, the number of the check issued for the purchase price or loan;

h.

The maturity date of the transaction; and

i.

The signature of the customer.

(2)

Entries shall appear in ink and shall be in chronological order. No blank lines may be left between entries. No obliterations, alterations or erasures may be made. Corrections shall be made by drawing a line of ink through the entry without destroying its legibility.

(3)

These entries shall be made no later than one hour after the transaction. A permanent bound set of the pawn tickets shall constitute the book required by this article.

(4)

All books and records required by this article and items pledged or sold under this section shall at all times be subject to inspection and examination by any law enforcement officer of the city or the state. Any person engaged in any business licensed under this article, who shall fail or refuse to keep the records as provided in this article, or who shall make false entries concerning the transaction or who shall fail or refuse to permit an inspection by any law enforcement officer of the city or the state of such records and of the property with or sold to them shall be guilty of a violation of this article.

(5)

All businesses licensed under this article shall use a standard form for pawn and a standard form for purchase, and no ticket may be used for a dual purpose. Standard forms may differ only by the name of the business and business' address. The design of this form shall be provided by the police department and the forms shall be numbered and chronologically used and sent to the police department. Each number missing from the chronological sequence shall be considered a separate violation of this article.

(6)

The record of each pawn or purchase transaction provided for in this code section shall be maintained for a period of not less than four years.

(7)

Every business licensed under this article shall make a daily report in writing to the police department of all property pledged or purchased during the 24-hour period ending at 10:00 p.m. on the date of the report. Such reports shall be legibly written or typed in English and shall show:

a.

The name and address of the business;

b.

Time of transaction;

c.

Sequel number of the pawn or purchase tickets;

d.

Amount paid or advanced;

e.

Full description of articles, including kind, style, material, serial number color, design, kind and number of stones in jewelry and all identifying names, marks, numbers, initials, or numbers; and

f.

A description of the person selling or pawning such item including name, address, color, weight and height.

(8)

No business licensed under this article shall take any item in pawn or purchase, taking full or possession title thereto, without entering each transaction of such goods on his books and on the standard forms as provided for hereinabove.

(c)

Identification required.

(1)

All businesses licensed under this article shall, when receiving in pawn or in purchasing goods, require a proper identification, driver's license, military I.D. card, state approved I.D. card or company employee I.D. card containing picture showing positive identification of the person who is pawning, selling or bartering and verify the identification.

(2)

All businesses licensed under this article shall require every person from whom it accepts goods on pawn or purchase to place the fingerprint of his right index finger (if right index finger is missing the next finger in line will be used) in ink on the front of the copy of the pawn or purchase ticket which is to be sent to the police department.

(d)

Disclosure tickets.

(1)

Every pawnbroker in every pawn transaction shall present the pledgor or seller with a written disclosure ticket or statement in legible English, appropriately completed, containing the following information:

a.

Information identifying the pawnbroker by name and address;

b.

A statement as follows: "This is a pawn transaction. Failure to make your payments as described in this document can result in the loss of the pawned item. The pawnbroker can sell or keep the item if you have not made all payments by the specified maturity date."

c.

If the pawned item is a motor vehicle or a motor vehicle certificate of title, a statement as follows: "Failure to make your payment as described in this document can result in the loss of your motor vehicle. The pawnbroker can also charge you certain fees if he or she actually repossesses your vehicle."

d.

A statement that the length of the pawn transaction is 30 days and that it can only be renewed with the agreement of both parties and only for 30-day incremental periods;

e.

The annual percentage rate, computed in accordance with the federal Truth in Lending Act and regulations under same, for the first 30 days of the transaction, computed as if all interest and pawnshop charges were considered to be interest;

f.

The annual percentage rate, computed in accordance with the federal Truth in Lending Act and regulations under the same, for each 30-day period in which the pawn transaction might be continued or extended, computed as if all interest and pawnshop charges were considered to be interest;

g.

A statement in dollar amounts of how much it will cost the seller or pledgor to redeem the merchandise in the first 30 days period of the transaction;

h.

A statement in dollar amounts of how much it will cost the seller or pledgor to redeem the merchandise in any 30-day period after the first month, provided that all fees and charges have been kept current;

i.

A statement of the specific maturity date of the pawn transaction;

j.

A statement setting forth the duration of any grace period during which the pledged foods may be redeemed after the specific maturity date and the dollar amount which will be required to redeem the pledge goods thereafter;

k.

Statement that after the grace period the pledged goods become the property of the pawnbroker;

l.

If the pawn transaction involved a motor vehicle or motor vehicle certificate of title, a statement that the pawnbroker may not charge a storage fee for the motor vehicle unless the pawnbroker repossess the motor vehicle pursuant to a default;

m.

If the pawn transaction involves a motor vehicle or motor vehicle certificate of title, a statement that the pawnbroker may charge a repossession fee not to exceed $5.00 per day, but only if the pawnbroker takes physical possession of the vehicle;

n.

If the pawn transaction involves a motor vehicle or motor vehicle certificate of title, a statement that the pawnbroker may charge a repossession fee not to exceed $50.00, but only if the vehicle is repossessed;

o.

A statement that the pawnbroker may charge a fee to register a lien, not to exceed any fee actually charged by the appropriate state to register a lien, but only if the lien is actually placed upon the motor vehicle certificate of title;

p.

A statement that any costs to ship the pledged items to the pledgor or seller can be charged to the pledgor or seller, along with a shipping and handling fee to equal no more than 50 percent of the actual shipping costs;

q.

A statement that a fee of up to $2.00 may be charged for each lost or destroyed pawn ticket.

(2)

In addition to the information required by subsection (b) of this code section, the pawnbroker may but is not required to include the following information on the same disclosure ticket or statement, provided that such information is not used to obscure or obfuscate the information required by subsection (b) of this code section:

a.

Information identifying the pledgor or the seller;

b.

Any logo which the pawnbroker may desire to use;

c.

Any numbers or characters necessary for the pawnbroker to identify the merchandise or goods associated with the pawn transaction;

d.

Any other information required to be disclosures to consumers by any other law, rule or regulation of the United States or of the State of Georgia;

e.

Information identifying or describing the pledged item;

f.

Information which is only for the internal business use of the pawnbroker;

g.

The hours of operation of the pawnbroker;

h.

The time of day of the pawn transaction; and

i.

Any agreement between the pledgor or seller and the pawnbroker which does not controvert the provisions of this part, of this code section, or any other provision of law.

(3)

The pawnbroker shall have the pledgor or seller sign the disclosure statement and shall furnish a completed copy to him or her. The pawnbroker shall maintain a completed and signed copy of the disclosure statement on file for two years subsequent to the maturity date of the transaction. Failure to maintain such a copy shall be conclusive proof that the pawnbroker did not furnish such a statement to the pledgor or seller.

(d)

Retention and return of pawned articles.

(1)

Every business licensed under this article which takes goods on pawn shall hold such goods for at least 45 days, unless redeemed by the owner or on authority of the owner before disposing of same by sale, transfer, shipment or otherwise.

(2)

Any person properly identifying himself and presented a pawn ticket to the pawnbroker shall be presumed to be the pledgor or seller and shall be entitled to redeem the pledged goods described in such ticket. In the event such pledged goods are lost or damaged while in the possession of the pawnbroker, it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with like kinds of merchandise and proof of replacement shall be a defense to prosecution.

(f)

Display of goods pledged or purchased.

(1)

For a period of 30 days from the date of purchase or the pledge, unless redeemed by or by authority of the person who pledged the goods, all goods purchased or pawned and required to be listed under subsection 22-138(b)(1) shall be kept on the premises designated in the license for doing business. Every item required to be kept on the premises under this section shall have attached to it either a copy of the form required in subsection 22-138(b)(1) or the number of such form.

(2)

Any item required to be kept or displayed under the provisions of this code section shall be kept in their original form as they existed when first purchased and their physical characteristics shall not be altered in any material or immaterial manner.

(g)

Hours of operation. All businesses licensed under this article shall close their establishment and cease transacting any business no later than 10:00 p.m. each day and begin their operation and commence transacting business at no time before 7:00 a.m. each day.

(h)

Unlawful activities; penalties.

(1)

It shall be unlawful for any pawnbroker, or any clerk, agent or employee of same to:

a.

Fail to make an entry of any material matter in his permanent record book;

b.

Make any false entry therein;

c.

Falsify, obliterate, destroy, or remove from his place of business such permanent record book;

d.

Refuse to allow any duly authorized law enforcement officer to inspect his permanent record book or any of the goods in his possession during the ordinary hours of business or at any reasonable time;

e.

Fail to maintain a record of each pawn transaction for at least four years;

f.

Accept a pledge or purchase property from a person under the age of 17 or who the pawnbroker knows is not the true owner of the property;

g.

Make any agreement requiring the personal liability of a pledgor or seller or waiving any of the provisions of this part or providing for a maturity date less than one month after the date of the pawn transaction; or

h.

Fail to return or replace pledged goods to a pledgor or seller upon payment of the full amount due the pawnbroker unless the pledged goods have been taken into custody by a court or a law enforcement agency.

(2)

No business transactions by any business licensed under this article shall be conducted outside the building designated as the normal place to conduct transactions unless such business does not have a building. Business transaction means any part of business including inspection or appraisal of any goods when it is possible for such goods to be taken inside the building where transactions normally are made ("possible" being here used in the broadest sense); and no person other than those processing a license or employee permit shall be allowed to conduct any form of business transactions either inside the establishment or on any part of outside land area covered under address of the license.

(3)

No business licensed under this article shall accept any articles which have had the serial number altered, obliterated or removed from such article or which the person who is making the business transaction knows should have a serial number on it. Licensees shall immediately report any attempted business transactions of this nature to the police department.

(4)

Any person, business or entity that violates any provision of this code section shall be guilty of a misdemeanor as defined by state law. Operation of any business under this article in violation of any provision of this article shall constitute a separate offense for each day of operation.

(i)

Stolen items.

(1)

Every person licensed under this article shall, immediately upon request, turn over to the police department every item believed by the police department to be a stolen item. The police department shall furnish a property receipt including a case number of recovery to the dealer surrendering such items. Such item shall be returned to the licensee only after it has been determined that such item is not stolen. If it is determined that such item is stolen it shall be returned to its lawful owner.

(2)

Any person desiring to examine any merchandise shall first obtain a copy of a police department incident or stolen property report. Upon presentation of a copy of such report to any licensed dealer or employee and upon giving in writing to such dealer a full description of the stolen items sought, including all identifying characteristics, his name, address, signature, identification, and incident or stolen property report number and issuing department, such individual shall be allowed to examine any merchandise, of the type described on the premises. Such written information shall be kept in sequential, dated order in a permanent file or book. This record shall be kept in addition to all other records required under this article.

(j)

State law. This article is to be construed as consistent with state law. However, these provisions are to be applied in lieu of state law and state fee and registration requirements whenever possible. It is the intent of the city council that all duties delegated to the chief law enforcement officer of the city shall be exercised as provided under this article.

(Ord. No. 03-2007, § 1, 2-26-07; Ord. No. 02-2009(2), § 1(Exh. A), 5-11-09)