Pawnbroker; Regulations in Massachusetts

Part I. Administration of the Government (Ch. 1-182)
Title XX. Public Safety and Good Order (Ch. 133-148A)
Chapter 140. Licenses (Refs & Annos)
§ 70. Licensing of pawnbrokers; governing statutes; revocation
§ 71. Retention of articles; sale; disposition of proceeds; notice; other disposition; personal apparel
§ 72. Interest rate; penalty
§ 73. Entry upon premises; investigation; examination of articles, books and inventories
§ 74. Obstruction of entrance or examination by officer; failure to exhibit items demanded
§ 75. Unlicensed business
§ 76. Loans on personal property; purchases on condition of reselling; exceptions
§ 77. Fee; bond
§ 78. Regulations; interest rate
§ 79. Record book; information furnished to authorities
§ 80. Memorandum for pawner; charge
§ 81. Inspection of books
§ 82. Penalty
§ 82A. Violations of Sec. 79; liability of pawnbroker
§ 84. Wrong name or address of seller or pawner

§ 70. Licensing of pawnbrokers; governing statutes; revocation

The police commissioner of Boston, the license commission of Lowell, the aldermen of any other city, or the selectmen of any town, if ordinances or by-laws therefor have been adopted in such city or town, may license suitable persons to carry on the business of pawnbrokers in such city or town, subject to sections two hundred and two to two hundred and five, inclusive, and may revoke such licenses at pleasure.

§ 71. Retention of articles; sale; disposition of proceeds; notice; other disposition; personal apparel

Articles deposited in pawn with a licensed pawnbroker shall, unless redeemed, be retained by him on the premises occupied by him for his business for at least four months after the date of deposit, if not of a perishable nature; and, if perishable, for at least one month after said date. After the expiration of the applicable period of time, he may sell the articles by public auction, apply the proceeds thereof in satisfaction of the debt or demand and the expense of the notice and sale, and pay any surplus to the person entitled thereto on demand; provided, that no such sale of any article which is not of a perishable nature shall be made unless not less than ten days prior to the sale a written notice of the intended sale shall have been sent by registered mail to the person entitled to the payment of any surplus as aforesaid, addressed to his residence, as appearing in the records of such pawnbroker. No article taken in pawn by such pawnbroker exceeding twenty-five dollars in value shall be disposed of otherwise than as above provided, any agreement or contract between the parties thereto to the contrary notwithstanding. Articles of personal apparel shall not be deemed to be of a perishable nature within the meaning of this section.

§ 72. Interest rate; penalty

The authorities which issue such licenses may fix the rate of interest which such pawnbrokers may receive on loans, and may fix different rates which may be received for different amounts of money lent; and no licensed pawnbroker shall charge or receive a greater rate of interest than that so fixed. Any such pawnbroker who violates any provision of this or the preceding section shall be punished by a fine of not more than fifty dollars.

§ 73. Entry upon premises; investigation; examination of articles, books and inventories

The chief of police of a city, the selectmen of a town, any officer authorized by either of them, or a state police officer may at any time enter upon any premises used by a licensed pawnbroker for the purposes of his business, ascertain how he conducts his business, and examine all articles taken in pawn or kept or stored in or upon said premises and all books and inventories relating thereto. Every such pawnbroker, his clerk, agent, servant or other person in charge of the premises shall exhibit to such officer on demand any or all of such articles, books and inventories.

§ 74. Obstruction of entrance or examination by officer; failure to exhibit items demanded

A licensed pawnbroker, clerk, agent or other person in charge of such premises who refuses to admit thereto an officer authorized to enter the same, or who fails to exhibit to him on demand all such articles, books and inventories, and any person who wilfully hinders, obstructs or prevents such officer from entering the premises or from making the examination authorized in the preceding section, shall be punished by a fine of not more than two hundred dollars or by imprisonment for not more than one year, or both.

§ 75. Unlicensed business

Whoever, not being licensed, carries on such business or is concerned therein within such town, or, being licensed, carries on such business or is concerned therein in any other place or manner than that designated in his license or after notice to him that his license has been revoked shall be punished by a fine of not more than fifty dollars.

§ 76. Loans on personal property; purchases on condition of reselling; exceptions

No person shall, in any city or in any town of ten thousand or more inhabitants, engage in or carry on the business of loaning money upon mortgages, deposits or pledges of wearing apparel, jewelry, ornaments, household goods or other personal property, or of purchasing such property on condition of selling it back again at a stipulated price, unless he is licensed as a pawnbroker; but this and the six following sections shall apply only if such property is deposited with the lender, and shall not apply to loans made upon stock, bonds, notes or other written evidences of ownership of property or of indebtedness to the holder or owner of any such securities.

§ 77. Fee; bond

The fee for a license as a pawnbroker or renewal thereof shall be established in a town by town meeting action and in a city by city council action, and in a town with no town meeting by town council action, by adoption of appropriate by-laws and ordinances to set such fees, but in no event shall any such fee be greater than one hundred dollars. The licensee shall, at the time of receiving such license, file with the authorities who issue the license a bond to such city or town, in the sum of three hundred dollars, with two sureties approved by such authorities, and conditioned for the faithful performance of the duties and obligations pertaining to the business so licensed.

§ 78. Regulations; interest rate

The authorities who grant licenses to pawnbrokers shall establish regulations, to the satisfaction of the commissioner of banks, relative to the business carried on and the rate of interest to be charged by them, and a pawnbroker shall not charge or receive upon any loan a greater rate of interest than that fixed by the licensing authorities.

§ 79. Record book; information furnished to authorities

Every pawnbroker shall keep a book in which, at the time of making a loan, shall be legibly written in the English language an account and description, including all distinguishing marks and numbers, of the articles pawned, the amount of money loaned thereon, the time of pawning them, the rate of interest to be paid on such loan, and the name and residence of the person pawning such articles, and shall furnish a correct record of such transactions, containing all such information, once a week, or oftener if required, to the licensing authorities or to any person designated by them. Every pawnbroker shall also photograph any person pawning articles and keep the photographs with said books as part of his records.

§ 80. Memorandum for pawner; charge

Every such pawnbroker shall, at the time of making such loan, deliver to the person who pawns any article a memorandum or note signed by him and containing the substance of the entry required by the preceding section. No charge shall be made or required by any pawnbroker for such entry, memorandum or note.

§ 81. Inspection of books

Said book shall at all reasonable times be open to the inspection of the mayor, of the members of the board of police, of the superintendent of police and deputy superintendents, of the chief inspector of police, of any officer of the state police or of any person authorized by them in writing for that purpose who exhibits such written authority to such pawnbroker.

§ 82. Penalty

Whoever violates any provision of the six preceding sections shall be punished by a fine of not less than fifty nor more than three hundred dollars or by imprisonment for not more than two months, or both.

§ 82A. Violations of Sec. 79; liability of pawnbroker

Any pawnbroker who violates the provisions of section seventy-nine in reference to articles pawned which are found to be stolen articles shall be liable for the loss incurred by the loan, and the pawned article may be reclaimed by the owner of the same.

§ 84. Wrong name or address of seller or pawner

Any person thus offering any tool for pawn or for sale who signs a wrong name or address shall be punished by a fine of not more than one hundred dollars or by imprisonment for not more than six months. Any pawnbroker who knowingly writes the wrong name or address of a person thus offering a tool for sale or for pawn, or knowingly permits the signing of such wrong name or address, shall be fined one hundred dollars for the first offence, and upon a second offence his license shall be revoked, and he shall not be permitted to conduct the business of pawnbroker in the commonwealth for one year.

Mass. Gen. Laws Ann. ch. 140, §§ 70 - 84 (proposed legislations omitted)