CHAPTER 112: PAWNBROKERS
Section
   112.01   Definition
   112.02   Bond
   112.03   Register to be kept; daily reports
   112.04   Receipt to be given for each article; sale of article
   112.05   Maximum interest, resale price
   112.06   Receipt to be given for payment of loan
   112.07   Prohibited activities
   112.08   Enforcement
 
   112.99   Penalty
§ 112.01 DEFINITION.
   For the purpose of this chapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.
   PAWNBROKER. Any person who loans money on deposit of personal property; deals in the purchase of personal property on condition of selling the property back again at a stipulated price; makes a public display at his or her place of business of the sign generally used by PAWNBROKERS to denote their business; or who publicly exhibits a sign advertising money to loan on personal property or deposit.
(KRS 226.010)
§ 112.02 BOND.
   Every person to whom a city license is granted to carry on the business of a pawnbroker shall annually enter into bond to the city, with good and sufficient surety to be approved by City Council, in the penal sum of $1,000. This bond shall be conditioned that he or she will observe the provisions of this chapter and all ordinances and laws in force in the city not inconsistent with this chapter.
(KRS 226.020)
§ 112.03 REGISTER TO BE KEPT; DAILY REPORTS.
   (A)   Every pawnbroker shall keep a register of all loans and purchases of all articles by the pawnbroker from the general public. The register shall:
      (1)   Be reported to an online, Internet-based transaction recording service accessible to law enforcement agencies;
      (2)   Of all persons who have left any property that has been pawned or sold, show the dates and the amounts of all loans or purchases by the pawnbroker from the general public, and the names and:
         (a)   A driver’s license number;
         (b)   Another state or federally issued picture identification card number; or
         (c)   If the identification specified in divisions (A)(2)(a) or (A)(2)(b) of this section is not available, a Social Security number may be accepted.
      (3)   At all times be available to the inspection of any law enforcement officer of the city when in the discharge of his or her official duty; and
      (4)   Contain a full description of all property purchased by the pawnbroker from the general public or received on deposit as collateral or security. When requested by law enforcement and pertaining to an investigation, a photograph of the merchandise shall be made available to law enforcement if the property is still in the possession of the pawnbroker. For purposes of this division (A)(4), FULL DESCRIPTION includes, but is not limited to:
         (a)   Make;
         (b)   Model;
         (c)   Color;
         (d)   Size;
         (e)   Manufacturer;
         (f)   Vintage; and
         (g)   Distinguishing marks or characteristics.
   (B)   When secondhand merchandise is sold to a pawnbroker, the merchandise shall be held for a minimum of 12 days before being resold.
   (C) Prior to the release of property to a representative of law enforcement, the law enforcement representative shall provide to the pawnbroker a case report or other documentation that the item has been reported as stolen.
(KRS 226.040)
   (D) Every pawnbroker shall, by 11:00 a.m. each day, make available to the Chief of Police a true and correct written report of all goods received by him or her, whether by pawn or purchase, during the 24 hours preceding each report. The report shall describe the goods as accurately as practicable. The Chief of Police shall furnish blanks for these reports.
(KRS 226.070)
Penalty, see § 112.99
§ 112.04 RECEIPT TO BE GIVEN FOR EACH ARTICLE; SALE OF ARTICLE.
   (A)   Every pawnbroker shall give a plain written or printed ticket for the loan to the person negotiating or selling, and a plain written or printed receipt of the articles that have been purchased or upon which money is loaned, having on each a copy of the entries required by § 112.03(A) to be kept in his or her register. He or she shall not make any charge for the ticket or receipt.
   (B)   A pawnbroker may sell any article pawned after the expiration of 60 days from the maturity of the loan. However, not less than ten days before making the sale, the pawnbroker shall give notice to the person by whom the article was pawned, by mail addressed to the post office address of that person as shown on the pawnbroker’s register, notifying the person that, unless he or she redeems the article within ten days from the date of mailing of the notice, the article will be sold.
(KRS 226.050) Penalty, see § 112.99
§ 112.05 MAXIMUM INTEREST, RESALE PRICE.
   Any pawnbroker as defined in § 112.01, may, in loaning money on deposit of personal property, charge, contract for or receive interest at a rate not exceeding 2% per month on the unpaid principal balance of the loan, and may charge, contract for and receive a reasonable fee, not to exceed one-fifth of the value of the loan per month, for investigating the title, storing and insuring the property, closing the loan, making daily reports to local law enforcement officers, and for other expenses, losses and incidental costs associated with servicing these loans. Further, this fee, when made and collected, shall not be deemed as interest for any purpose of law. No pawnbroker shall directly or indirectly charge, receive or contract for any interest or consideration greater than that allowed by this section.
(KRS 226.080) Penalty, see § 112.99
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