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For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BILLABLE TRANSACTION. Every reportable transaction conducted by a pawnbroker is a billable transaction except renewals, redemptions or extensions of existing pawns on items previously reported and continuously in the licensee’s possession, voided transactions, and confiscations.
PAWN SHOP. A facility where money is loaned based on the value of goods deposited at the facility by the borrower of the money, which goods are held by the pawnbroker of the money occupying the facility as collateral for the loan. Items held by the pawnbroker which are not redeemed by a borrower may be put up for sale at the facility to the general public. For purposes of this chapter a PAWN SHOP is not to be confused with an antique or second hand store, which such primary business is not the loaning of money for a product received and held.
PAWNBROKER. Any natural person, partnership or corporation, or any other legal entity however organized, either as principal, agent, or employee thereof who loans money on deposit of or pledge for personal property or other valuable things, or who deals in the purchasing of personal property or other valuable things on condition of selling same back again at a stipulated price, or who loans money secured by chattel mortgages on personal property, taking possession of the property or any part thereof so mortgaged. To the extent that a pawnbroker’s business includes buying personal property previously used, rented or leased, or selling it on consignment, the provisions of this chapter shall be applicable.
REPORTABLE TRANSACTION. Every transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, consignment or trade, or in which a pawn is renewed, extended or redeemed, or for which a unique transaction number or identifier is generated by its point-of-sale software, or an item is confiscated by law enforcement, is reportable except:
(1) The bulk purchase or consignment of new or used merchandise from a merchant, manufacturer or wholesaler having an established permanent place of business, and the retail sale of the merchandise, provided the pawnbroker must maintain a record of the purchase or consignment which describes each item, and must mark each item in a manner which relates it to that transaction record;
(2) Retail and wholesale sales of merchandise originally received by pawn or purchase, and for which all applicable hold and/or redemption periods have expired; and
(3) Items purchased from a Minnesota city, county or other political subdivision’s law enforcement agency as an alternative to disposing of unclaimed, impounded, seized or confiscated items through public auction or sale, as allowed by state statute or local ordinance.
(Ord. 679, passed 7-7-09)