CHAPTER 118: PAWNBROKERS

Section

   118.01   Definitions

   118.02   Bond

   118.03   Register to be kept; daily reports

   118.04   Receipt to be given for each article; sale of article

   118.05   Maximum interest; resale price

   118.06   Receipt to be given for payment of loan

   118.07   Prohibited activities

   118.08   Enforcement

   118.99   Penalty

§ 118.01 DEFINITIONS.

   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)

§ 118.02 BOND.

   (A)   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.

   (B)   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)

§ 118.03 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)   Show dates and the amounts of all loans or purchases by the pawnbroker from the general public of all persons who have left any property that has been pawned or sold, 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) 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 this state 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, “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 § 118.99