(A) Redemption period.
(1) Any person pledging, pawning, or depositing an article of property for security shall have a minimum of sixty (60) days from the date of that transaction to redeem the article before it may be forfeited and sold. During the sixty (60) day holding period, articles shall not be removed from the licensed premises.
(2) Licensees are prohibited from redeeming any article of property to anyone other than the person to whom the receipt was issued; or to any person identified in a written and notarized authorization to redeem the article(s) of property identified in the receipt; or to a person identified in writing by the pledger at the time of the initial transaction and signed by the pledger; or with the approval of the Chief Law Enforcement Officer. Written authorization for release of articles of property to persons other than the original pledger must be maintained along with the original transaction record.
(B) Effect of nonredemption.
(1) A pledgor shall have no obligation to redeem pledged goods or make any payment on a pawn transaction, pledged goods not redeemed within at least sixty (60) days of the date of the pawn transaction, renewal, or extension shall automatically be forfeited to the pawnbroker, and qualified right, title, and interest in and to the goods shall automatically vest in the pawnbroker.
(2) The pawnbroker's right, title, and interest in the pledged goods under division (B)(1) above is qualified only by the pledgor's right, while the pledged goods remain in possession of the pawnbroker and not sold to a third party, to redeem the goods by paying the loan plus fees and/or interest accrued up to the date of redemption.
(3) A pawn transaction that involves holding only the title to property is subject to M.S. Ch. 168A or Ch. 336.
(C) Redemption; risk of loss. Any person to whom the receipt for pledged goods was issued, or any person identified in a written and notarized authorization to redeem the pledged goods identified in the receipt, or any person identified in writing by the pledgor at the time of the initial transaction and signed by the pledgor shall be entitled to redeem or repurchase the pledged goods described on the ticket. In the event the goods are lost or damaged while in possession of the pawnbroker, the pawnbroker shall compensate the pledgor, in cash or replacement goods acceptable to the pledgor, for the fair market value of the lost or damaged goods. Proof of compensation shall be a defense to any prosecution or civil action.
(D) Holding period.
(1) No article of property pledged, pawned, or on deposit for security with any licensee shall be permitted to be redeemed for a period of seventy-two (72) hours from the date of transaction, excluding Sundays and holidays, except upon written authorization of the Chief Law Enforcement Officer.
(2) No article of property purchased by a licensee may be sold or otherwise disposed of for thirty (30) days from the date of the transaction, except that articles of property for which there exists a valid certificate of title issued by the State of Minnesota, showing ownership and registration by the person from whom the article was received, may be sold or otherwise disposed of ten (10) days from the date of transaction.
(E) Restrictions on sale or redemption.
(1) Investigative hold. Whenever a law enforcement official from any agency, acting in the course and scope of their duties, notifies a licensee not to sell or permit to be redeemed an article of property in the licensee's possession, the article may not be sold, redeemed or removed from the premises by the licensee. The investigative hold shall be confirmed in writing by the originating agency within seventy-two (72) hours and will remain in effect for fifteen (15) days from the date of notification, or until the hold is cancelled, or until a law enforcement hold is issued pursuant to division (E)(2) below, or until the article is confiscated, whichever comes first.
(2) Law enforcement hold. Whenever the Chief Law Enforcement Officer notifies a licensee not to sell or permit to be redeemed an article of property in the licensee's possession, the article may not be sold, redeemed, or removed from the premises by the licensee. The law enforcement hold shall be confirmed in writing within seventy-two (72) hours and will remain in effect for ninety (90) days from the date of notification unless the Chief Law Enforcement Officer determines the hold is still necessary and notifies the licensee in writing. When a law enforcement hold is no longer needed, the Chief Law Enforcement Officer shall so notify the licensee in writing.
(3) Confiscation report. If an article of property in the licensee's possession is determined to be stolen, it may be confiscated and seized as evidence by any law enforcement officer. A request for restitution from any person charged in regards to the stolen property confiscated shall be made on behalf of the licensee. When an article of property is confiscated, the person doing so shall provide identification upon request of the licensee, and shall complete a confiscation report providing at a minimum the name and telephone number of the confiscating agency and investigator, and the case number of the report related to the confiscation. The confiscation report shall be included with the reports submitted by the licensee, for review by the Chief Law Enforcement Officer.
(Ord. 427, passed 11-18-2014)