2023 New York Laws › GBS - General Business › Article 5 - Collateral Loan Brokers › 44 - Memorandum to Be Given.

§  44.  Memorandum  to  be given. 1. Every such collateral loan broker
shall at the time of each loan deliver to the person pawning or pledging
any goods, article  or  thing,  a  memorandum  or  note  signed  by  him
containing the substance of the entry required to be made in his book by
the  last  preceding  section.  Notwithstanding  any  general or special
statutes, local laws and ordinances to the contrary, no collateral  loan
broker  shall  ask,  demand or receive a service charge greater than ten
dollars for loans equal to or greater  than  five  hundred  dollars,  or
seven dollars for loans equal to or greater than one hundred dollars but
less than five hundred dollars for any such memorandum or note, provided
that  for  loans  less  than  one  hundred  dollars a service charge not
greater than four dollars may be imposed. The holder of such  memorandum
or note shall be presumed to be the person entitled to redeem the pledge
and  the collateral loan broker shall deliver such article to the person
so presenting such memorandum  or  note  on  payment  of  principal  and
interest.    Should  such  ticket be lost or mislaid the pawnor shall at
once apply to the collateral loan broker, in which case it shall be  the
duty  of the collateral loan broker to permit such person to examine his
books, and on finding the entry for said ticket, note or  memorandum  so
lost  and  upon  his  giving  to  the  collateral  loan  broker an exact
description of the article pawned the collateral loan broker shall issue
a second or stop ticket for the same, provided such person shall furnish
to the collateral loan broker a lost instrument bond in an amount  equal
to  the  fair  market  value of the pledge or, in the alternative, pay a
lost ticket charge of one percent of the amount of  the  loan,  or  five
dollars,  whichever is greater. In case such pawnor neglects to so apply
and examine said books and receive such memorandum or note in the manner
above stated, the collateral loan broker will be bound  to  deliver  the
pledge  to  any person producing such ticket for the redemption thereof.
This article is not to  be  construed  as  in  any  manner  limiting  or
affecting  such  collateral  loan broker's common law liability in cases
where goods are stolen or other legal defects  of  title  exist  in  the
pledgor.
2. In addition to the information required to be furnished pursuant to
subdivision  one  of  this  section  a  pawn  ticket  shall  contain the
following notice:
NOTICE OF ELECTION
(a) The holder of this ticket may redeem the article  pledged  at  any
time  prior  to  sale  at private sale or public auction first following
default.  The article pledged may not be sold at private sale or auction
until it has remained  four  months  in  the  collateral  loan  broker's
possession.
(b)  If the article pledged is sold at private sale or public auction,
money, if any, in excess of the amount of  the  loan,  interest,  lawful
auctioneer's  commission,  if  applicable, lawful extra care charges and
the expenses of the advertisement of sale, if applicable, shall be  paid
to the holder of the pawn ticket.
(c)  If  the collateral loan broker shall purchase the article pledged
at auction the holder shall have an additional ten days  to  redeem  the
article  pledged  by  paying to the collateral loan broker the amount of
the loan, interest, lawful auctioneer's commission,  lawful  extra  care
charges and the expense of the advertisement of sale.
(d)  A  holder may sell this ticket to a third party at any time prior
to private sale or auction, or he may sell this ticket to the collateral
loan broker any time ninety or more days after the article was pledged.
(e) If this ticket is sold to a collateral loan broker the holder  may
redeem  the  ticket  within  ten  days  after  the sale by paying to the
collateral loan broker the amount paid for the ticket.
3. Notwithstanding any general, special or local law or  ordinance  to
the  contrary,  if  a  collateral  loan broker in good faith and without
knowledge extends credit  on  a  loan,  the  collateral  for  which  was
entrusted  to  the pledgor on consignment or was entrusted by a merchant
dealing  in  goods of the kind pledged to the pledgor who was a merchant
dealing in goods of the kind pledged, the collateral loan  broker  shall
be required to relinquish the collateral to the legal owner provided the
amount of the loan and interest due is paid.