Oregon Pawnbrokers

Title 54. CREDIT UNIONS, LENDING INSTITUTIONS AND PAWNBROKERS
Chapter 726. Pawnbrokers
REGULATION
§ 726.260. Director Rules and rulings
§ 726.270. Prohibited transactions by Pawnbrokers
§ 726.280. Maintenance of Register by Pawnbroker
§ 726.285. Maintenance of Transactional Records by Pawnbroker 
§ 726.290. Signature Requirement by Pledgor or Agent 
§ 726.300. Pawn Ticket Contents
§ 726.310. Presumption of Holder Redemption Entitilement
§ 726.320. Redemption by mail
§ 726.330. Pledge Delivery upon surrender of pawn ticket
§ 726.340. Loss, destruction or theft of pawn ticket
§ 726.350. Alteration of Pawn Ticket
§ 726.360. Effect of Spurious pawn tickets
§ 726.370. Multiple pledge claimants of pledge
§ 726.380. Pledge Loss or injury
§ 726.390. Interest rates, charges and Fees
§ 726.395. Firearms Charges 
§ 726.400. Loan Period and Expirations
§ 726.410. Maintenance of Forfeited Pledge Record
§ 726.420. Effect of excessive interest or fee charging
§ 726.440. Director of the Department of Consumer and Business
Services; Issuance of Orders
§ 726.450. Fees on Pledge Loans

§ 726.260. Director Rules and rulings

(1)     The Director of the Department of Consumer and Business Services shall administer and enforce this chapter.
(2)     In accordance with ORS chapter 183, the director may adopt rules and make any specific rulings, demands and findings as may be necessary for the proper conduct of the pawnbroker business and the enforcement of this chapter.
(3)     In addition to the notice requirements of ORS chapter 183, before the director adopts a rule, the director shall submit a copy of the rule to each pawnbroker.

§ 726.270. Prohibited transactions by Pawnbrokers

No pawnbroker shall:
(1)     Transact any business between the hours of 9 p.m. and 7 a.m. except that on Saturday the pawnbroker may transact business up to the hour of 10 p.m.
(2)     Accept a pledge from any person who is under the age of 18 years.
(3)     Convert or dispose of any unredeemed pledge before the time to redeem it has expired or before the pledge has been forfeited to the pawnbroker as provided in ORS 726.400.

§ 726.280. Maintenance of Register by Pawnbroker

(1)     Every pawnbroker shall keep a register in which the pawnbroker records in ink or in electronic form:
(a)     The date of the transaction.
(b)     The serial number of the pledge loan.
(c)     The name and address of the pledgor, or if a person acting as agent for a disclosed principal makes a pledge, the name and address of the principal and the agent.
(d)     An identifying description of the pledge.
(e)     The amount of the pledge loan.
(f)     The date on which the pledge loan was canceled.
(g)     A notation as to whether the pledge was redeemed or renewed, or whether the pledge was forfeited.
(h)     A notation that indicates that a lien search of the pledge has been conducted in the pledgor's county of residence or with the state agency that is responsible for recording liens on the category of property to which the pledge belongs.
(2)     All entries in the register must be made in the English language and must be open to the inspection of any public official, police officer or any other person who is duly authorized or empowered by the laws of this state to make an inspection.
(3)     Every pawnbroker shall maintain an alphabetical file from which can be determined the total obligations of any one pledgor.
(4)     Subject to the provisions of this chapter, the Director of the Department of Consumer and Business Services may prescribe the form of other books and records the pawnbroker must keep. All records shall be preserved and available for at least two years after making the final entry on any pledge loan recorded in the books or records.

§ 726.285. Maintenance of Transactional Records by Pawnbroker 

(1)     In addition to the register required under ORS 726.280, a pawnbroker shall record, for each transaction, the date, the name and address of the pledgor, the type and number of any proof of identification presented by the pledgor, a physical description of the pledgor and an identifying description of the article pledged.
(2)     The pawnbroker shall deliver each record, or a copy thereof, made under this section, within three days after the date of the transaction, to the local police agency that has jurisdiction over the location at which the pawnbroker has a place of business.

§ 726.290. Signature Requirement by Pledgor or Agent 

The pawnbroker shall at the time of making a loan require the pledgor or agent of the pledgor to write the signature and address of the pledgor or the agent of the pledgor on a card, ticket, stub or any other approved record, bearing the serial number of the loan corresponding to that recorded in the pawnbroker's register as provided in ORS 726.280. If the person is unable to write, the person shall sign the person's mark, and in such event the pawnbroker shall record on the signature card, stub or record such information as will enable the pawnbroker to identify the person in case of the loss of the ticket.

§ 726.300. Pawn Ticket Contents

(1)     A pawnbroker at the time the pawnbroker makes a pledge loan shall deliver to the pledgor or an agent of the pledgor a memorandum or pawn ticket on which the pawnbroker shall legibly write or print the following:
(a)     The date of the transaction.
(b)     The serial number of the pledge loan.
(c)     The article or articles pledged.
(d)     The amount of the pledge loan.
(e)     The rate of interest charged on the loan.
(f)     The name and address of the pawnbroker.
(g)     An accurate summary of the notice requirements of ORS 726.400.
(h)     Other terms and conditions the pawnbroker may wish to insert that are not inconsistent with this chapter.
(2)     Nothing that appears on the pawn ticket relieves the pawnbroker of the obligation to exercise reasonable care in safekeeping articles pledged with the pawnbroker.

§ 726.310. Presumption of Holder Redemption Entitilement

Except as otherwise provided in this chapter, the holder of the memorandum or pawn ticket shall be presumed to be the person entitled to redeem the pledge. The pawnbroker shall deliver the pledge to the person presenting such memorandum or pawn ticket upon payment of principal and interest due on the pledge loan.

§ 726.320. Redemption by mail

When a pawn ticket, instead of being presented in person, is sent to the pawnbroker by mail, accompanied with a money order, bank draft or cash for the amount due including the cost of shipment and packing as desired, the pledge shall be securely packed and forwarded by the pawnbroker in accordance with the remitter's instructions. If the remittance is insufficient to cover the amount due and the cost of shipment and packing as desired, the pawnbroker shall either notify the remitter of the amount of the deficiency or send the pledge subject to the payment of the deficiency by the consignee. The pawnbroker's liability for the pledge shall cease upon delivery thereof to the carrier or the agent of the carrier.

§ 726.330. Pledge Delivery upon surrender of pawn ticket

Except as otherwise provided in this chapter, a pawnbroker shall not be required to deliver a pledge except upon surrender of the pawn ticket, unless the ticket is impounded or its negotiation enjoined by a court of competent jurisdiction.

§ 726.340. Loss, destruction or theft of pawn ticket

If a pawn ticket or memorandum is lost, destroyed or stolen, the pledgor shall notify the pawnbroker of the loss, destruction or theft in writing. The pawnbroker shall treat receipt of the notice as a stop against the pledge loan, and thereafter the provisions of ORS 726.310 and 726.320 do not apply to the pledge loan. Before delivering the pledge or issuing a new pawn ticket, the pawnbroker may require the pledgor to make an affidavit of the alleged loss, destruction or theft and may charge a fee of not more than $3 for the lost, destroyed or stolen ticket. Not more than five days after receiving notice of the loss, destruction or theft of the ticket, the pawnbroker shall permit the pledgor either to redeem the pledge or to receive a new ticket upon paying accrued interest. The pawnbroker shall incur no liability for permitting the pledgor to redeem the pledge or receive a new ticket unless the pawnbroker has previously received written notice of an adverse claim. This section does not limit or affect the pawnbroker's legal liability in cases where goods are stolen or other legal defects exist in the pledgor's title with respect to the pledge.

§ 726.350. Alteration of Pawn Ticket

The alteration of a pawn ticket shall not excuse the pawnbroker who issued it from liability to deliver the pledge according to the terms of the pawn ticket as originally issued, but shall relieve the pawnbroker of any other liability to the pledgor or holder of the pawn ticket.

§ 726.360. Effect of Spurious pawn tickets

If a pawn ticket is presented to a pawnbroker which purports to be the one issued by the pawnbroker, but which is found to be spurious, the pawnbroker may seize and retain it without any liability whatsoever to the holder thereof. Any such pawn ticket so seized shall be delivered or mailed immediately to the Director of the Department of Consumer and Business Services accompanied by a letter of explanation.

§ 726.370. Multiple pledge claimants of pledge

(1)     If more than one person claims the right to redeem a pledge, the pawnbroker is not liable for refusing to deliver the pledge until the respective rights of the claimants have been adjudicated unless the pawnbroker fails to verify whether the pledge is subject to a lien or other encumbrance, if the pledge is:
(a)     A boat, as defined in ORS 830.005;
(b)     A snowmobile, as defined in ORS 801.490;
(c)     A trailer, as described in ORS 726.010 (2)(a)(D); or
(d)     An all-terrain vehicle that is not required to be registered with the Department of Transportation.
(2)     In an action brought against the pawnbroker for recovery of the pledge, the pawnbroker may as a defense require all known claimants to interplead.
(3)     If either claimant does not bring an action against the pawnbroker within 30 days after notice of an adverse claim, the pawnbroker may dispose of the pledge as provided in this chapter.

§ 726.380. Pledge Loss or Injury

(1)     A pawnbroker is liable for the loss of a pledge or a part of a pledge or for an injury to a pledge that results from failure to exercise reasonable care.
Reasonable care includes maintaining sufficient insurance coverage against possible loss as a result of fire, theft and burglary so as to protect the interest of the pledgor for the amount of the loan.
(2)     A pawnbroker shall hold a pledge in a gated, secured facility that is designed, constructed, furnished and maintained to present physical deterrents to a person's ability to enter into the facility without authorization and remove the pledge, if the pledge is:
(a)     A boat, as defined in ORS 830.005;
(b)     A snowmobile, as defined in ORS 801.490;
(c)     A trailer, as described in ORS 726.010 (2)(a)(D); or
(d)     An all-terrain vehicle that is not required to be registered with the Department of Transportation.
(3)     The pawnbroker has the burden of proof to establish due care if a pledge is lost.
(4)     The pawnbroker has a first lien on any pledge for the amount of the pledge loan and interest in all cases except where goods are stolen or where a prior lien exists by virtue of any provision of law.

§ 726.390. Interest rates, charges and Fees

(1)     A pawnbroker may not charge, contract for or receive interest at a rate in excess of three percent per month. However, on pledge loans redeemed within the first month the pawnbroker may charge a month's interest or the pawnbroker may charge $3 when the interest accumulated amounts to less. The pawnbroker may not compound the interest and may not deduct or receive an amount in advance.
(2)     A pawnbroker may charge a set-up fee of 10 percent for loans and loan renewals with a minimum charge of $2 and a maximum charge of $100.
(3)     A pawnbroker may charge a storage fee of not more than three percent for loans and loan renewals, with a minimum charge of $2 and a maximum charge of $100.
(4)     Except as provided by law, a pawnbroker may not charge, contract for or receive an amount in addition to the interest provided for in this section.

§ 726.395. Firearms Charges

(1)     A pawnbroker may charge a pledgor or customer $3 if the pledgor or customer places with the pawnbroker firearms required to be registered under the laws of the United States. The pawnbroker may not charge this $3 fee to renew the pledgor's or customer's placement of the firearm with the pawnbroker.
(2)     In addition to the fee described in subsection (1) of this section, a pawnbroker may charge a pledgor or customer any fee that a government entity imposes on the pawnbroker for holding or transferring a firearm.

§ 726.400. Loan Period and Expirations

(1)     Unless a pledgor and a pawnbroker agree to a longer loan period and the longer loan period is written on the pawn ticket, a pledge loan shall be made for a period of 60 days. A pledge may be redeemed and the pledge loan repaid at any time before the loan period expires. A pawn ticket must clearly state the expiration date of the loan.
(2)     A pledgor and a pawnbroker may agree to renew a pledge loan for successive periods of 60 days or longer. A loan is a renewal of the original loan if the pledgor pays only the interest and the fees on the loan or pays a portion of the principal, the interest and the fees on the loan and accepts another pledge loan from the pawnbroker on the same pledge on the same day.
(3)     Except for a pledge that secures a pledge loan of $500 or less, the pawnbroker may not deem a pledge to be forfeited until:
(a)     The pawnbroker notifies the pledgor that the pledge is at risk of forfeiture after the period described in subsection (1) or (2) of this section expires; and
(b)     The pledgor has had an opportunity to redeem the pledge as provided in this section.
(4)     The notice described in subsection (3) of this section must be in writing and delivered postpaid in a securely closed envelope addressed to the pledgor at the last-known address shown on the pawnbroker's record by:
(a)     Regular mail, if the pledge secures a loan of more than $500 but less than $1,500; or
(b)     Certified mail, return receipt requested, and regular mail, if the pledge secures a loan of $1,500 or more.
(5)     Delivery of a notice under this section occurs when the notice is mailed as provided in this section. As evidence of the notification, the pawnbroker shall keep a copy of each notice the pawnbroker sends by regular or certified mail, together with the certified return receipt card or the returned envelope for the notice, for at least two years. The pledgor shall bear the postal costs and a reasonable charge for preparing a notice for delivery by certified mail.
(6)     A pledgor has a grace period of 30 days after the mailing date of the notice required by this section in which to redeem the pledge or to renew the loan by paying any renewal fee and all the accrued interest and fees to date. There is no grace period after a renewal expires.
(7)     A pledge that is not redeemed within 30 days after the mailing date of a notice given under this section or within the renewal period, if any, is forfeited. The pawnbroker acquires the pledgor's title and interest in the forfeited pledge and the right to hold and dispose of the pledge as the pawnbroker's own property.

§ 726.410. Maintenance of forfeited pledges Record

Every pawnbroker shall keep an indelible record, fully itemized, of all forfeited pledges. The record shall contain the following information:
(1)     The number of the pledge.
(2)     The name and address of the pledgor.
(3)     The date of the pledge loan or the date of the last payment received as interest or principal.
(4)     The date of mailing notice.
(5)     The date of forfeiture.

§ 726.420. Effect of charging excessive interest or fees

If any pawnbroker or agent, member, officer or employee thereof, or any other person is found by the Director of the Department of Consumer and Business Services to have charged, contracted for or received any interest, fees or other charges in excess of those permitted by ORS 726.390, then the pledge loan shall be void. The pawnbroker shall forfeit the right to collect or receive any principal, interest or charges whatsoever. The pawnbroker shall upon order of the director return to the pledgor free from the pawnbroker's lien the pledge pledged by the pledgor without tender of principal and interest and shall pay into the county school fund of the county wherein the loan is made all payments and all fees or other charges previously collected under such pledge loan.

§ 726.440. Director of the Department of Consumer and Business Services; Issuance of Orders

(1)     The Director of the Department of Consumer and Business Services may, if the director has reason to believe that a person has:
(a)     Violated, is violating or is about to violate ORS 726.040, 726.100, 726.110, 726.130, 726.270, 726.280, 726.285, 726.290, 726.300, 726.390, 726.400 or 726.410, a rule adopted under ORS 726.260 or an order issued under this chapter, issue an order to cease and desist from the violation.
(b)     Failed to file the annual report required by ORS 726.130, issue an order to file the report.
(c)     Filed information under ORS 726.060, 726.110, 726.130 or 726.250 that is false or untruthful, issue an order to correct the filing.
(d)     Failed to maintain in effect the bond or an irrevocable letter of credit required under ORS 726.070, issue an order to remedy the failure.
(2)     
(a)     The director shall serve an order under this section on the person named in the order.
(b)     An order issued under this section becomes effective upon service on the person named in the order.
(c)     ORS 183.413 to 183.470 apply to an order issued under this section.
(d)     Notwithstanding paragraph (c) of this subsection, a person may not obtain a hearing on the order unless the person requests the hearing in writing within 20 days after service of the order.
(e)     A person who does not request a contested case hearing may not obtain judicial review of the order.
(f)     The director may vacate or modify an order issued under this section. A modified order is effective upon service on the person named in the order.
(3)     The authority conferred by this section is in addition to and not in lieu of any other authority conferred on the director.

§ 726.450. Fees on Pledge Loans

A city or county may impose and collect from a pawnbroker a fee of not more than $1 for each pledge loan the pawnbroker makes in a calendar year, except a renewal of a pledge loan, for the purpose of administering and using a system, including an electronic database, to track pledged articles. The pawnbroker may charge a pledgor only the amount of the fee that the city or county imposes under this section.

ORS§§ 726.260 - 726.450