Oregon Administrative Code on Pawnbrokers

Administrative regulations adopted in Oregon with regard to pawnbrokers is detailed below:

Oregon Administrative Code
441. DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, DIVISION OF FINANCE AND CORPORATE SECURITIES
Division 740. PAWNBROKERS

Division 740. PAWNBROKERS [Combined]
441-740-0000. Definitions
441-740-0010. Fees Payable by Pawnbrokers to the Director
441-740-0015. Fees Charged by Pawnbrokers to Pledgors
441-740-0016. Daily-Interest Computation
441-740-0020. Pawnbrokers Required to Use Reasonable Care in Caring for Pledges; "Reasonable Care" Defined
441-740-0025. Description of Pledged Items
441-740-0035. Other Information to be Submitted with Annual Report
441-740-0040. Loan Agreement
441-740-0045. Advertising
441-740-0050. Pledge Loans of $500 or More
441-740-0055. Surrender of License
    
441-740-0000. Definitions

"Advertising" includes signs, inside or outside of a business premise, advertising in newspapers and print media, on radio, television, and electronic media by the licensee or on the licensee's behalf.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.010 & 726.040
    
441-740-0010. Fees Payable by Pawnbrokers to the Director

(1) The annual fees paid pursuant to ORS 726.125(1) and (2) shall be $350.

(2) Whenever the Director provides extra services to a pawnbroker under ORS 726.125(3) or conducts an examination of a licensed pawnbroker under 726.250, the Director will collect the cost to the Division for the Director and the examiners and other Division employees used in providing the extra services or conducting the examination. The rate of charge is $75 an hour per person.

(3) In addition to the charges fixed by section (2) of this rule, the Director will collect any additional costs directly attributable to extra services provided under ORS 726.125(3) or an examination made under 726.250.

(4) The director may by order reduce the fees assessed for any specific year.

Note:
Stat. Auth.: ORS 726.125 & 726.250
Stats. Implemented: ORS 726.125 & 726.250
    
441-740-0015. Fees Charged by Pawnbrokers to Pledgors

(1) When a firearm must be registered under the laws of the United States, the pawnbroker may charge a $3 fee only when the firearm is taken in. This fee may not be charged on any renewal of the pledge loan on the firearm.

(2) For any transaction reportable to a government agency, the pawnbroker may charge the fee imposed by a governmental agency for that transaction. For example: the pawnbroker may pass on a fee, such as $0.50, that a city charges the pawnbroker for use of that city's online database to report a pledge transaction. However, if that city charged a flat annual fee of $100 to the pawnbroker for use of an online database, that flat fee cannot be split up and charged back to pledgors.

(3) ORS 726.400 permits passing through to the pledgor "a reasonable fee for preparing the notice" on pledge loans of $500 or more. A fee not to exceed $5 will be deemed reasonable. Postal costs may also be recovered. Mileage costs and employee time to travel to and from the post office are not considered "preparing the notice" and are not recoverable.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.390, 726.395, 726.400
    
441-740-0016. Daily-Interest Computation

Interest on a loan must be computed on a daily basis using a 365-day year. The maximum charge for each day shall be 1/365th of the annual rate when calculating the elapsed time of the loan.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.390
    
441-740-0020. Pawnbrokers Required to Use Reasonable Care in Caring for Pledges; "Reasonable Care" Defined

(1) A pawnbroker shall exercise reasonable care to protect pledges from theft and burglary.

(2) As used in this rule unless otherwise required, "reasonable care" means:

(a) Having a method or system of promptly notifying the police or a security company when a burglary or theft occurs or is in progress; and

(b) Having a structure or enclosure in which the business is conducted that is designed, constructed, furnished and maintained so as to create physical deterrents to unauthorized entry or unauthorized removal of pledged goods, giving special consideration to security of high value items and weapons.

(3) In complying with section (2) of this rule, a pawnbroker shall give serious consideration to:

(a) An alarm system with a direct connection to an off-site security company or a police agency;

(b) Bars on the windows, extra thick doors, vaults of heavy metal and similar structural deterrents to unauthorized entry;

(c) Safes for jewelry, gems and coins and storage areas for guns, all of which are so constructed and located as to deter and delay unauthorized entry and to provide time for a police agency or other security company to respond to a call in the event of a burglary or theft;

(d) The suggestions and recommendations of the local law enforcement agency or agencies; and

(e) Other or similar security precautions and systems.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.380
    
441-740-0025. Description of Pledged Items

(1) The description of items in the register maintained by the pawnbroker, to satisfy needs of local law enforcement, must include:

(a) Brand name;

(b) Model number, if evident;

(c) Serial number, if evident; and

(d) Any other unique identifying marks, numbers, names, or letters.

(2) Notwithstanding section (1) of this rule, in the case of multiple similar items delivered in one transaction which do not bear model or serial numbers and which do not include precious metal or gemstones, the description of the items is adequate if it contains the quantity of items and a description of the type of items delivered. For example, if a tool box containing hand tools was pledged, it would be sufficient to identify the number of hand tools and the type of hand tools contained in the tool box.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.280
    
441-740-0035. Other Information to be Submitted with Annual Report

At the same time the pawnbroker files an annual report, the pawnbroker must include with that annual report:

(1) A copy of the front and back of the pawn ticket currently used by the pawnbroker;

(2) Any change of its mailing address;

(3) Specific details about any change of ownership of the pawnbroker;

(4) Any change in the surety bond or issuer of the surety bond;

(5) The current rate of interest and schedule of fees being charged; and

(6) A copy of the declarations page of an insurance policy or policies showing current fire, theft and burglary coverage.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.130
    
441-740-0040. Loan Agreement

A pawnbroker may not capture a pledgor's race or sex on any copy of a loan agreement other than the copy to be provided to law enforcement.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.280 and 726.285
    
441-740-0045. Advertising

(1) A licensed pawnbroker must use its Oregon license number in any paid advertising.

(2) Without a pawnbroker license, a business may not use an assumed business name or advertising of a business that would lead the public to believe the business is a licensed pawnbroker, including use of "pawn," "hawk," "hock," or any synonym of any of those terms, in the assumed business name or in advertising referring to the business, whether used as a single word or part of a word.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.040
    
441-740-0050. Pledge Loans of $500 or More

(1) When a pawnbroker agrees to renew any pledge loan of $500 or more on or before the expiration date of that pledge loan, the pawnbroker shall not send a notice of forfeiture letter.

(2) When a pledge loan of $500 or more is not paid or renewed on or before the expiration date, the pawnbroker must send the notice of forfeiture letter as required by ORS 726.400. Following the sending of the notice of forfeiture letter, the pawnbroker may only give the pledgor a grace period of 30 days within which to redeem the pawned item, or a one-time renewal period of up to 60 days.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.400
    
441-740-0055. Surrender of License

When a pawnbroker surrenders a license, the written notice to the director must include:

(1) The original pawnbroker license;

(2) A copy of the notice posted on the front of the pawnbroker's place of business notifying customers of the closure of the pawnbroker business;

(3) A list of outstanding pledge loans and a description of how those loans will be handled;

(4) The physical location where pledged items will be held; and

(5) The physical location where the pawnbroker's books and records will be held.

Note:
Stat. Auth.: ORS 726.260
Stats. Implemented: ORS 726.190