TC Ord. No. 1997-10 Amending Title 5 of the Town of Avon code to provide for the regulation of pawnbrokersORDINANCE NO. 97 -10
AN ORDINANCE AMENDING TITLE 5 OF THE TOWN OF
AVON MUNICIPAL CODE TO PROVIDE FOR THE
REGULATION OF PAWNBROKERS
Be it ordained by the Town Council of the Town of Avon,
Colorado, as follows:
SECTION 1. Title 5 of the Town of Avon Municipal
Code is hereby amended by the addition of a Chapter 5.28 as
follows:
CHAPTER 5.28
PAWNBROKERS
Sections:
5.28.010
5.28.020
5.28.030
5.28.040
5.28.050
5.28.060
5.28.070
5.28.080
5.28.090
5.28.100
5.28.110
5.28.120
5.28.130
5.28.140
5.28.150
Definitions
License required.
Application.
Application fee.
Investigation.
Denial - Suspension - Revocation
Transferability - Change of Ownership
of Corporation Structure.
Manager - Change of Manager.
Expiration and annual renewal.
Annual license fee
Bond Required.
Town Manager's approval required.
Books and records.
Pawn Tickets.
- Change of
Transfer of pawn ticket generally - transfer to
pawnbroker.
5.28.160 Loss of pawn ticket.
5.28.170 Adverse Claims.
5.28.180 Altered pawn ticket.
5.28.190 Seizure of Counterfeit or reportedly lost pawn
ticket - seizure of counterfeit or fraudulent
identification.
5.28.200 Interest rate - commission.
5.28.210 Intermediate payments - Receipts.
5.28.220 Property held - Time limit - sale of unredeemed
articles.
5.28.230 Sale of articles represented by pawn tickets
transferred to pawnbroker.
5.28.240 Hold order.
5.28.250 No deficiency or offsets permitted.
5.28.260 Unlawful transactions.
5.28.270 Unlawful to pawn certain items.
4.28.280 Safekeeping - insurance.
5.28.290 Accepting lost or stolen articles.
5.28.300 Notice to Avon Police Department
5.28.310 Liability of pledged property.
5.28.320 Removal of place of business.
5.28.330 Investigation - Right of Entry.
5.28.010 DEFINITIONS.
(a) "Contract for purchase" means a contract entered into
between a pawnbroker and a customer pursuant to which money is
advanced to a customer on the condition that a customer, for a
fixed price and within a fixed period of time, not to exceed
ninety days, has the option to cancel said contract.
(b) "Fixed price" means that amount agreed upon to cancel a
contract for purchase during the option period. Said fixed price
shall not exceed one -tenth of the original purchase price for
each month plus the original purchase price on amounts of fifty
dollars or over, or one -fifth of the original purchase price for
each month plus the original purchase price on amounts under
fifty dollars.
(c) "Fixed time" means that period of time, not to exceed
ninety days, as set forth in a contract for purchase for an
option to cancel said contract.
(d) "Manager" means an individual employee of a pawnbroker
who directs the business of the pawnbroker and who is in direct
control of the pawnbrokering business.
(e) "Optic" means the fixed time and the fixed price agreed
upon by the customer and the pawnbroker in which a contract for
purchase may but does not have to be rescinded by the customer.
(f) "Pawnbroker" means a person, partnership, or
corporation regularly engaged in the business of making contracts
for purchase or purchase transactions in the course of his
business.
(g) " Pawnbrokering" means the business of a pawnbroker as
defined by this section.
(h) "Pledge" or "pledged property" means_ any tangible
personal property deposited with a pawnbroker pursuant to a
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contract for purchase in the course of his business as defined in
this section.
(i) "Pledgor" means a customer who delivers a pledge into
the possession of a pawnbroker.
(j) "Purchase transaction" means the purchase by a
pawnbroker in the course of his business of tangible personal
property for resale, other than newly manufactured tangible
personal property which has not previously been sold at retail,
when such purchase does not constitute a contract for purchase.
(k) "Tangible personal property" means all personal
property other than choses in action, securities, or printed
evidences of indebtedness, which property is deposited with or
otherwise actually delivered into the possession of a pawnbroker
in the course of his business in connection with a contract for
purchase or a purchase transaction.
5.28.020 LICENSE REQUIRED. It is unlawful for any person,
firm or corporation to conduct the business of pawnbroker within
the town limits unless such person, firm or corporation shall
have first obtained a "pawnbroker's license" from the Town.
5.28.030 APPLICATION. (a) All applicants for a
pawnbroker's license shall file an application for such license
with the Town Clerk on forms to be provided by the Clerk. Each
individual applicant, partner of a partnership, officer,
director, and holder of ten percent or more of the corporate
stock of the corporate applicant, and all managers, shall be
named in each application form, and each of them shall be
photographed and fingerprinted by the Avon Police Department; and
each of them shall furnish three letters of character reference
from residents of the Town or the surrounding area. Each
individual applicant, partnership, and corporate applicant shall,
in addition, furnish as an attachment to and part of such
application evidence that the proposed establishment meets the
requirements of the zoning ordinance, proof of the applicant's
right to possession of the premises wherein the business of
pawnbrokering will be conducted, a Financial Questionnaire,
Consent to Release Financial Information, and a current personal
financial statement or a balance sheet and income account
statement for the preceding twelve month period prior to the date
of the application. Each corporate applicant shall furnish
evidence that it is in good standing under the statutes of the
State of Colorado, or in the case of a foreign corporation ,
evidence that it is currently authorized to do business in the
State of Colorado.
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(b) No pawnshop shall be established, operated or maintained
within 500 feet of any public or private school, including
without limitation, pre - school or day -care center, elementary,
secondary or high school; provided, however, this provision shall
not apply to those pawnshops established, operated and maintained
as of the effective date of this requirement in their present
locations, and within their present configurations. Said 500
foot distance shall be measured directly and horizontally from
the property line of the school and the property line of the
pawnshop.
5.28.040 APPLICATION FEE. Each applicant, whether an
individual, partnership, or corporation, shall pay an application
fee of one hundred fifty dollars at the time of filing an
application. Such application fee shall be nonrefundable.
5.28.050 INVESTIGATION. On receipt of a properly completed
application, together with all information required in connection
therewith, fingerprints and photographs, and the payment of the
application and license fees, the Town Clerk shall transmit the
application to the Avon Police Department for investigation of
the background, character and financial responsibility of each
individual applicant, the partners of a partnership, the
officers, directors, and holders of ten percent or more of the
stock of a corporation, and each person named as manager of a
proposed pawnbroker's establishment. Each applicant shall pay a
nonrefundable investigation fee in the amount set by the State of
Colorado from time to time for each person who will be
investigated at the time the application is filed. The Town of
Avon Police Department shall furnish the results of such
investigation to the Town Clerk, together with a recommendation
with respect to the granting or denial of the license, and reason
therefor.
5.28.060 DENIAL - SUSPENSION - REVOCATION. (a) The
application of any applicant may be denied, or after notice and
hearing, an existing license may be suspended or revoked by the
Town Manager or his designee, if it is shown that the individual
applicant, any partner of a partnership, any officer, director,
or holder of ten percent or more of the stock of a corporate
applicant, or any manager of a pawnbroker's establishment, is not
of good moral character so as to reasonably assure that the
operations of the pawnbroker's establishment will be conducted
lawfully and in a manner which will not be detrimental to the
public interest or well- being. Having been adjudged in any civil
or criminal proceeding to have indulged in business or trade
practices prohibited by law, or convicted of any felony or other
offense involving moral turpitude and pertinent circumstances
connected therewith, shall be considered in determining whether,
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in fact, an individual applicant, partner, or director, officer,
or holder of ten percent or more of a corporate applicant's
stock, or a manager of the pawnbroker's establishment, is a
person of good moral character at the time of the application, or
time of review for possible suspension or denial.
(b) The fact that an individual applicant, partnership, or
corporation is not financially responsible, not in good standing,
or not authorized to do business in Colorado, may also be grounds
for denial, suspension, or revocation of a pawnbroker's license.
As used herein, "financially responsible" means having sufficient
income and assets to defray expenses and provide for liabilities
of the - business as they become due.
(c) Any pawnbroker found to be in violation of any of the
provisions of this chapter may have his license suspended or
revoked after notice and hearing before the Town Manager or his
designee. Such suspension or revocation shall be at the
direction of the Town Manager or his designee, and further, at
his discretion, and for good cause shown at a revocation or
suspension hearing, the Town Manager or his designee may declare
the pawnbroker ineligible for relicensing for the purpose of
carrying on the business of pawnbrokering within the town limits
at any future time. Notwithstanding the above, a pawnbroker may
apply for relicensing and present evidence of rehabilitation at
an administrative hearing before the Town Manager or his
designee. A pawnbroker may be granted a new license provided the
Town Manager or his designee finds adequate evidence of
rehabilitation was presented to show the pawnbroker is ready to
accept the responsibilities of a law- abiding and productive
member of society.
5.28.070 TRANSFERABILITY - CHANGE OF OWNERSHIP - CHANGE OF
CORPORATE STRUCTURE. Licenses issued under this chapter shall
not be transferable. Any change in the partners of a partnership
or in officers, directors, or holders of ten percent or more of
the stock of a corporate licensee holding a pawnbroker's license
shall result in termination of the license of the partnership or
corporation, unless such licensee within thirty days of any such
change, files a written notice of such change with the Town Clerk
and pays a nonrefundable fee of fifty dollars. Any such change
shall be reported on forms provided by the Town Clerk and shall
require the names of all new partners, officers, directors, and
all holders of ten percent or more of the corporate stock who
were not previously holders of such amount of stock, all of whom
shall be required to furnish, together with such notice, all of
the information required from such persons in connection with an
original application, three letters of character reference from
residents of the town or the surrounding metropolitan area, and
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each person shall be photographed and fingerprinted. Each person
shall then be investigated by the Town of Avon Police Department
as provided in Section 5.28.050. Grounds for denial of any such
transfer of corporate stock ownership, change of corporate
structure, partnership, and termination of the license thereon,
shall be the same as for denial of the license under Section
5.28.060.
5.28.080 MANAGER - CHANGE OF MANAGER. (a) A pawnbroker
may employ a manager to operate a pawnbrokering business,
provided the pawnbroker retains complete control of all aspects
of the pawnbrokering business, including but not limited to the
pawnbroker's right to possession of the premises, his
responsibility for all debts, and the pawnbroker must bear all
risk of loss or opportunity for profit from the business.
(b) In the event a licensee changes the manager of a
pawnbroker establishment the licensee shall immediately report
such change and register the new manager on forms provided by the
Town Clerk within thirty days of such change. The new manager
shall be photographed, fingerprinted, and furnish three letters
of character reference rom residents with the town or within the
surrounding metropolitan area, and shall be investigated by the
Town of Avon Police Department as provided in Section 5.28.050.
The licensee shall pay an investigation fee in the amount
established by the State of Colorado and a manager registration
fee of fifty dollars. Failure of a licensee to report such a
change or failure of the manager to meet the standards and
qualifications as required in Section 5.28.060 shall be grounds
for termination of the license.
5.28.090 EXPIRATION AND ANNUAL RENEWAL. Each license
issued pursuant to this chapter shall be for a period of one year
from the date of issuance, and an application for renewal shall
be filed not less than thirty days prior to the expiration of the
period for which the license is issued. A late renewal may be
approved by the Town Manager or his designee if good cause is
shown for the late filing of the renewal application. When an
application for renewal is received in proper form by the Town
Clerk, together with a nonrefundable renewal application fee of
fifty dollars, the Town Clerk shall refer the renewal application
to the Town of Avon Police Department for investigation and its
recommendation with respect to other approval or denial of the
renewal application. An investigation shall be made by the Town
of Avon Police Department unless the Chief of Police, or his
designee, in his discretion, deems an investigation unnecessary
and elects to recommend approval without such investigation.
5.28.100 ANNUAL LICENSE FEE. The annual license fee for
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carrying on the business of pawnbrokering shall be four hundred
dollars, payable to the Town Clerk at the time an initial
application for a license is filed or at the time a renewal
application is filed. Annual license fees shall be nonrefundable
unless an application is denied.
5.28.110 BOND REQUIRED. Every applicant for a pawnbroker's
license shall furnish a bond with a responsible surety, to be
approved by the Town Manager or his designee, in the amount of
ten thousand dollars, for the benefit of the People of the State
of Colorado, reconditioned upon the safekeeping or return of all
tangible personal property held by the pawnbroker, as required by
law and ordinance, and the due observance of the provisions of
this chapter. No license shall be issued or renewed absent such
approved bond. Termination or cancellation of an approved bond
shall be grounds for summary suspension of the license and for
subsequent revocation if a new bond is not furnished within
thirty (30) days after demand by the Town Manager or his
designee.
5.28.120 TOWN MANAGER'S APPROVAL REQUIRED. The Town
Manager or his designee shall have final authority to approve or
deny any application or application for renewal, and to review
any determination of the Town Clerk and the Town of Avon Police
Department made with respect thereto. The Town Manager or his-
designee in his discretion may issue the license or reject the
application upon the basis of criteria heretofore set forth, the
recommendations of the Town of Avon Police Department, the
findings of the Town Clerk and his determination of whether the
applicant has made a sufficient showing of good moral character,
financial responsibility, experience and general fitness to
command the confidence of the public and to warrant the belief
that the business will be operated lawfully, honestly, and
efficiently.
5.28.130 BOOKS AND RECORDS. (a) A pawnbroker shall keep
an alphabetical index of the names of customers and numerical
register in which he shall legibly record the following
information in the english language, in ink, and
contemporaneously with each contract for purchase or purchase
transaction:
(1) The name of the customer;
(2) The address of the customer;
(3) The date of birth of the customer;
(4) The Social Security number of the customer;
(5) The number of the customer's valid Colorado driver's
license, or one of the following alternative forms of
identification:
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(A) Valid Colorado identification card;
(B) A valid driver's license, with photograph, issued by
another state;
(C) Military identification card;
(D) Valid passport;
(E) Alien registration card;
(F) An identification document, with photograph, issued by
the state or federal government, if the pawnbroker obtains a
clear- imprint of the customer's right index finger;
(6) The date, time and place of the contract for purchase
or purchase transaction.
(7) An accurate, detailed account and description of each
item of tangible personal property including but not limited to
any trademark, identification number, serial number, model
number, brand name, or identifying marks on such property and
(8) The signature of the customer.
(b) The pawnbroker shall obtain a written declaration of
the customer's ownership which shall state that the tangible
personal property is totally owned by the customer, how long the
customer has owned the property, whether the customer or someone
else found the property, and if the property was found, the
details of the finding. The customer shall sign his name in the
register and on the declaration of ownership and receive a copy
of the contract for purchase or a receipt of the purchase
transaction.
(c) The pawnbroker shall keep the register for at least
three years after the date of the last transaction entered in the
register. The register shall be kept in a place which is
reasonably safe from destruction or theft.
(d) Such register shall be open to the inspection of any
Town of Avon Police Department agent. Upon the demand of such
agent, the pawnbroker shall produce and show any tangible
personal property given to the pawnbroker in connection with any
contract for purchase or purchase transaction. The pawnbroker's
books shall list the date on which each contract for purchase was
canceled; whether it was redeemed, or forfeited and sold.
(e) Every pawnbroker shall provide the Town of Avon Police
Department with records, on forms approved by the Town of Avon
Police Department, of any tangible personal property accepted by
the pawnbroker pursuant to a contract for purchase or a purchase
transaction and copies of each customer's declaration of
ownership. The form shall contain the same information required
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to be recorded in the pawnbroker's register pursuant to this
section. The required forms shall be mailed to the Town of Avon
Police Department within seven days of each contract for purchase
or purchase transaction.
5.28.140 PAWN TICKETS. At the time of making a contract or
purchase or upon the subsequent renewal of any contract for
purchase the pawnbroker shall deliver to the customer a pawn
ticket from a bound book containing stubs, which book and stubs
are correspondingly serially numbered, and which stubs shall
contain the following information:
The name and address of the licensee; a description of the
pledge sufficient to adequately identify the pledge; the date of
the transaction; the amount, duration, and terms of the contract
for purchase, language which represents suitably Section 5.28.140
through 5.28.160 shall appear on the back of the pawn ticket.
The pawnbroker may insert on the pawn ticket any other terms,
conditions, and information not inconsistent with the provisions
of this chapter.
5.28.150 TRANSFER OF PAWN TICKET GENERALLY - TRANSFER TO
PAWNBROKER. The holder of the pawn ticket shall be presumed to
be the person entitled to cancel the contract for purchase and
except as provided otherwise in this chapter, the pawnbroker
shall deliver the pledge to the person presenting the pawn ticket
on payment of principal and charges and upon surrender of the
pawn ticket. The holder of any pawn ticket may transfer same to
the issuing pawnbroker by writing upon the ticket "Transferred to
(name of pawnbroker)" and signing same under such writing. The
effect of transferring a pawn ticket to the issuing pawnbroker
shall be to vest in the pawnbroker such ownership and title to
the pawn ticket and the pledged property represented thereby as
the holder had. The pawnbroker may thereafter sell the pledged
property in accordance with the provisions of Section 5.28.230.
Every instance of transference of a pawn ticket to a pawnbroker
shall be reported within seven (7) days to the Town of Avon
Police Department on a form to be approved by the Town of Avon
Police Department.
5.28.160 LOSS OF PAWN TICKET. If a pawn ticket is lost,
destroyed, or stolen the customer shall so notify the issuing
pawnbroker in writing. Before permitting the cancellation of the
contract for purchase or issuing a duplicate pawn ticket, the
pawnbroker may, in addition to satisfying himself of the validity
of the claim, require the customer to make an affidavit of the
alleged loss, destruction, or theft of the ticket. Upon receipt
of such affidavit or statement in writing as the case may be, the
pawnbroker shall permit the customer to cancel the contract for
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purchase or the pawnbroker shall deliver to the customer a
duplicate ticket and the pawnbroker shall incur no liability for
doing so unless he had previously received written notice of an
adverse claim. The form of the affidavit shall be substantially
as follows:
"AFFIDAVIT OF LOSS OF PAWN TICKET"
STATE OF COLORADO )
) ss:
COUNTY OF EAGLE )
I,
say:
, being first duly sworn, depose and
1. I am the pledgor of a pawn ticket issued by (name of
pawnbroker), numbered , ( "Unknown" if number is not known),
and dated ( "Unknown" if date is not known).
2. The above - described ticket has not been sold,
negotiated, or transferred in any other manner by me.
3. The above - described pawn ticket was (lost, destroyed,
or stolen) as follows:
4. The pledge represented by this pawn ticket is
(description of pledge).
Further affiant sayeth not.
Affiant
Subscribed and sworn to before me this day of ,
Notary Public
My commission expires:
5.28.170 ADVERSE CLAIMS. If more than one person claims
the right to cancel a contract for purchase the pawnbroker shall
incur no liability for refusing to deliver the pledge until the
respective rights of the claimants are adjudicated. If no action
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is brought against the pawnbroker by either party prior to the
expiration of the period for which he is required under Section
5.28.220 to hold the pledge, he may proceed to sell the pledge in
accordance with the provisions of this chapter.
5.28.180 ALTERED 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
ticket as originally issued, but shall relieve him from any other
liability to the pledgor of the ticket.
5.28.190 SEIZURE OF COUNTERFEIT OR REPORTEDLY LOST PAWN
TICKET - SEIZURE OF COUNTERFEIT OR FRAUDULENT IDENTIFICATION.
(a) If a ticket is presented to a pawnbroker which purports to
be one issued by him but which is found to be counterfeit or
which has been reported to him as lost, stolen or destroyed, the
pawnbroker may seize and retain the same without any liability
whatsoever to the holder thereof. Upon such occasion, the
pawnbroker shall immediately notify the Town of Avon Police
Department. The Town of Avon Police Department shall then place
a hold order on the pawn ticket so seized, as set out in Section
5.28.240, and pledged property shall be held by the pawnbroker
until such time as the lawful disposition of the pledged property
is either agreed upon, determined by court action, or directed by
ordinance or statute.
(b) If a pawnbroker has reason to believe a customer is
exhibiting counterfeit or fraudulent identification, the
pawnbroker or his employee, acting in good faith and upon
probable cause based upon reasonable grounds therefore, may seize
such identification without incurring civil or criminal liability
as a result of such seizure, provided the pawnbroker immediately
gives such identification to the Town of Avon Police Department.
5.28.200 INTEREST RATE - COMMISSION. No pawnbroker shall
ask, demand or receive any greater rate of interest, commission
and compensation than the total rate of one -tenth of the original
purchase price for each month, plus the original purchase price,
on amounts of fifty dollars or over, or one -fifth of the original
purchase price for each month, plus the original purchase price,
on amounts under fifty dollars. No other charges shall be made
by the pawnbroker upon renewal of any contract for purchase or at
any other time. In the event any such charges are made, the
contract shall be void. Any contract for the payment of
commissions by the customer for making a contract for purchase on
tangible personal property shall be null and void.
5.28.210 INTERMEDIATE PAYMENTS - RECEIPTS. The pawnbroker
shall accept intermediate payments, without penalty, upon
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contracts for purchase which have not yet matured when presented
with the pawn ticket, and shall treat the amount tendered as a
payment upon the existing contract for purchase. A receipt
showing the date and the amount of the payment shall be given for
all moneys received on account of or in payment of the contract
for purchase, and the date and amount of each such payment shall
be entered upon the property serially numbered stub in the bound
book required to be kept by Section 5.28.130 at the time of each
such payment. The total amount of money presented shall be
applied against the amount of indebtedness. In no event shall any
late charges, collection fees or other such service charges be
deducted from the amount of the payment tendered to the
pawnbroker.
5.28.220 PROPERTY HELD - TIME LIMIT - SALE OF UNREDEEMED
ARTICLES. (a) The pawnbroker shall hold tangible personal
property purchased by him through a purchase transaction for
thirty days following the date of purchase, during which time
such property shall be held separate and apart from any other
tangible personal property and shall not be changed in form or
altered in any way.
(b) The pawnbroker shall hold all tangible personal
property pledged as security on a contract or purchase in his
possession during the term of,the contract for purchase, plus a
period of ten days following the maturity date of the contract or
purchase, during which time such goods shall be held separate and
apart from any other tangible personal property and shall not be
changed in form or altered in any way. The date of maturity of
a contract of purchase shall be deemed for purposes of this
chapter to be whichever of the following is the later date:
(1) The date on which the contract for purchase is to be
repaid if any portions remain unpaid on that date; or
(2) The date on which the last payment has been accepted by
the pawnbroker.
(c) If the pledgor fails or neglects to cancel the contract
for purchase by repayment of the balance of the principal and
payment of all accrued interest charges, the pawnbroker shall
mail a notice to the pledgor after the maturity date of the
contract for purchase to the address designated in the books and
records. The notice shall give the number of the pawn ticket, a
description of the property pledged, and shall notify the pledgor
that the contract or purchase must be canceled within ten days
form the date of the notice, and specify the date, and that upon
his failure to cancel the Contract for purchase by that date, the
pledged property shall be deemed forfeited to the pawnbroker and
the right of the pledgor to cancel the contract for purchase
shall be terminated. Such notice shall be in the form
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substantially as follows:
Avon, Colorado,
TO:
(Name)
(Address)
(City, State,
Zip Code)
You are hereby notified to cancel the contract for purchase
on or before ten days from the above date, to wit: (Date)_,
or the pledged property will be forfeited to the pawnbroker under
the contract for purchase and your rights to the pledged property
will thereafter be terminated. Your pawn ticket is No.
, the property pledged by you as security is described
as follows:
Pawnbroker
Pawnbroker's address
(d) The pawnbroker shall retain in his records the original
notice, in its unopened envelope, if returned to the pawnbroker.
If notwithstanding the notice the person making the contract for
purchase fails to cancel the contract for purchase within the ten
day period designated in the notice, all right, title and
interest of the pledgor to the pledged property shall be
forfeited to the pawnbroker who shall acquire title to the
property, and the debt become satisfied.
5.28.230 SALE OF ARTICLES REPRESENTED BY PAWN TICKETS
TRANSFERRED TO PAWNBROKER. Any tangible personal property
deposited with a pawnbroker as security for a contract or
purchase represented by a pawn ticket which has been transferred
to the pawnbroker in accordance with Section 5.28.150 may be sold
by the pawnbroker thirty days after such transference and
appropriate notification to the Town of Avon Police department.
5.28.240 HOLD ORDER. Any authorized agent of the Avon
Police Department may order a pawnbroker to hold any specified
tangible personal property deposited with or in the custody of
any pawnbroker for purposes of further investigation by the Town
of Avon Police Department. A hold order shall be affective upon
verbal notification of the pawnbroker by an authorized agent of
the Town of Avon Police Department. Written notice of the hold
order shall be provided to the pawnbroker within twenty -four
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hours of the verbal notification, unless the end of the twenty -
four hour period falls on a Saturday, Sunday or holiday, in which
event the written notification of the hold order shall be
provided to the pawnbroker on the following Monday or the next
business day following a holiday. A hold order shall supersede
the provisions of Sections 5.28.220 and 5.28.230, and no sale or
other disposition may be made of any specified tangible personal
property deposited with or in the custody of the pawnbroker while
the hold order remains in effect. Any sale or other disposition
of the property after the pawnbroker has been notified by the
Town of Avon Police department of a hold order shall be unlawful
and a violation of this provision.
5.28.250 NO DEFICIENCY OR OFFSETS PERMITTED. The
pawnbroker shall look to the property pledged for payment of the
contract for purchase and in no event shall the pawnbroker look
to the personal credit of the pledgor. No set -off shall be
allowed the pawnbroker against the surplus or deficit arising out
of another contract for purchase between the parties. In no
event shall any deficiency balances be collected by the
pawnbroker and in the event that such an attempt is made, the
entire transaction shall be void.
5.28.260 UNLAWFUL TRANSACTIONS. (a) It is unlawful for
any pawnbroker to make a contract or purchase, acquire a pawn
ticket by transfer, or make a purchase transaction with the
following:
(1) Any person under eighteen years of age;
(2) Any person under the influence of alcohol, or any
narcotic drug, stimulant or depressant;
(3) Any person known to such pawnbroker to have been
convicted of a felony involving theft, without first notifying
the Avon Police Department;
(4) Any person appearing to the pawnbroker to be in an
abnormal mental state.
(5) Any person whose actions would give the pawnbroker
probable cause to believe the tangible personal property, which
is the subject of a contract for purchase or purchase transaction
with that customer was obtained illegally.
(b) With respect to a contract for purchase, no pawnbroker
may permit any customer to become obligated on the same day in
any way under more than one contract for purchase agreement with
the pawnbroker which would result in the pawnbroker obtaining a
greater amount of money than would be permitted if the pawnbroker
and customer had entered into only one contract for purchase
covering the same tangible personal property.
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(c) No pawnbroker shall violate the terms of any contract
for purchase.
(d) No customer shall knowingly give false information to
any pawnbroker with respect to the information required by any
provision of this chapter.
5.28.270 UNLAWFUL TO PAWN CERTAIN ITEMS. It is unlawful
for any pawnbroker to accept in pledge, buy, sell or display in
his place of business any switchblade knife, any knife whose
blade is detachable from its handle, any knife whose blade opens
by any mechanical means, any gravity knife, any throwing star,
any brass or metallic knuckles or other items commonly used for
and designed for the purpose of beating or striking others, any
nuchaku, blackjack, or billy club, property with missing or
altered serial numbers, or any other property which is illegal to
possess.
5.28.280 SAFEKEEPING - INSURANCE. Any pawnbroker licensed
and operating under the provisions of this chapter shall provide
a safe place for the keeping of pledged property received by him,
and shall have sufficient insurance on the pledged property held
by him for the benefit of the pledgor to pay fifty percent of the
real value thereof in case of fire, theft, or other casualty
loss, which policy shall be deposited with the Town Manager or
his designee prior to approval of the license. Neither the
pawnbroker nor surety shall be relieved from their responsibility
by reason of such fire, theft, or other casualty loss, nor from
any other case, save full performance.
5.28.290 ACCEPTING LOST OR STOLEN ARTICLES. A pawnbroker
who accepts in pledge any tangible personal property as security
for a contract for purchase from one who is not the owner thereof
obtains no title in the property either by reason of a pledgor's
failure to cancel the contract for purchase or by transference of
the pawn ticket to the pawnbroker by the pledgor thereof.
Ignorance of the fact that the pledged property was lost or
stolen shall not be construed to affect the question of title;
and if the pawnbroker shall sell such article to a third person,
he shall remain liable to the original owner in any appropriate
legal action. The lawful owner may, upon proving his ownership of
the lost or stolen property claim the same for the pawnbroker or
recover the same by means of any appropriate legal action.
5.28.300 NOTICE TO TOWN OF AVON POLICE DEPARTMENT OF STOLEN
ITEMS. In the event that any person shall approach a pawnbroker
and attempt to pledge or sell to the pawnbroker tangible personal
property which the pawnbroker has reason to believe has been
stolen, it shall be the duty of the pawnbroker to immediately
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notify the Town of Avon Police Department, giving a description
of the person attempting to pledge or sell such property. It is
unlawful for a pawnbroker to fail to notify the Town of Avon
Police Department under the situation described in this section,
if it can be shown that the pawnbroker could reasonably have
known that the property was stolen or obtained in any other
unlawful manner.
5.28.310 LIABILITY FOR PLEDGED PROPERTY. A pawnbroker
shall be liable for the loss of pledged property or part thereof,
or for injury thereto, whether caused by fire, theft, burglary,
or otherwise, as a result of his failure to exercise reasonable
care in regard to it. A pawnbroker shall not be liable, in the
absence of an express agreement to the contrary, for the loss of
or injury to pledged property which could not have been avoided
by the exercise of due care. Nothing herein shall affect the
right of the pledgor to insurance proceeds on such property.
5.28.320 REMOVAL OF PLACE OF BUSINESS.
(a) No license shall be valid for any location other than
the location for which it is issued, except as hereinafter
provided.
(b) Relocation of a pawnbroker's place of business shall be
permitted under the same license in accordance with the following
procedure:
(a) A pawnbroker wishing to relocate his place of
business within the town shall give written notice thereof to the
Town Clerk no less than thirty days prior to the date of
relocation.
(b) The Town Clerk shall enter an order permitting the
change and amend the license accordingly if she finds the
licensee has the right to possession of the proposed location and
the location is reasonably accessible to the existing customers.
If the Town Clerk does not so find, she shall issue an order
denying the pawnbroker such permission and notify the pawnbroker
of the reason for the denial.
(1) A pawnbroker wishing to relocate his place of
business within the town shall give written notice thereof to the
Town Clerk no less than thirty days prior to the date of
relocation.
(2) The Town Clerk shall enter an order
permitting the change and amend the license accordingly if she
finds the licensee has the right to possession of the proposed
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location and the location is reasonably accessible to the
existing customers. If the Town Clerk does not so find, she
shall issue an order denying the pawnbroker such permission and
notify the pawnbroker of the reason for the denial.
(3) If permission is denied, the pawnbroker may
within ten days following notice of denial file a written request
for review thereof with the Town Clerk. The denial shall then be
reviewed by the Town Manager or his designee, who shall have
authority to affirm or reverse the denial.
(4) In the event the Town Clerk approves the
relocation, the pawnbroker shall mail written notice to each
customer with whom the pawnbroker has an existing contract for
purchase. Such notices shall be mailed at least fifteen days
prior to the date of relocation. Any undelivered notice returned
to the pawnbroker shall be retained in the records of the
pawnbroker in the unopened envelope. The pawnbroker shall file
an affidavit of mailing with the Town Clerk together with a
sample copy of the notice of relocation.
5.28.330 INVESTIGATION - RIGHT OF ENTRY.
(a) For the purpose of investigating violations of this
chapter, any authorized agent of the Town of Avon Police
Department may at any reasonable time investigate the business
and examine the books, accounts, papers, and records of any
licensed pawnbroker or any person, partnership, or corporation
which engages in the business of pawnbrokering within the Town
and which are generated pursuant to this article.
(b) Application for or acceptance of a license by a
pawnbroker under the terms and provisions of this chapter shall
constitute a continuing consent to entry by any authorized agent
of the Town of Avon Police Department upon the pawnbroker's
premises for the purpose of investigating the business and
examining the books, accounts, papers, and records used therein,
and which are generated pursuant to this article, at any time
during the term of the license, during regular business hours or
whenever the pawnbroker, his employee, or agent is upon the
premises. Willful failure or refusal by the pawnbroker, his
agent, or employee to permit entry upon the premises by any
authorized agent of the Town of Avon Police Department as
provided herein, after presentation of credentials and demand for
entry, is a violation of this provision and shall be grounds for
revocation of the pawnbroker's license.
Section 2. Severability. If any part, section,
sentence, clause or phrase of this Ordinance is for any reason
17
held to be invalid, such decision shall not affect the validity
of the remaining portions of this Ordinance; and the Town Council
for the Town of Avon hereby declares it would have passed this
Ordinance and each part, section, sub - section, sentence, clause
or phrase thereof, irrespective of the fact that any one or more
parts, sections, sub - sections, sentences, clauses or phrases be
declared invalid.
Section 3. Penalty. It is unlawful for any person to
violate any provision of, or to fail to comply with any of the
requirements of, this Ordinance. Any person who violates any
provisions of this Ordinance shall be punished by a fine of not
more than one thousand dollars or by imprisonment for a period of
not more than ninety days or by both such fine and imprisonment;
provided, no person under the age of eighteen years shall be
punished by imprisonment.
Section 4. Effective Date and Applicability. This
ordinance shall become effective seven days after final posting
and shall apply to all existing pawnbrokers.
INTRODUCED, READ AND PASSED on first reading at a regular
meeting of the Town Council September 30, , 1997, and ordered
Posted the and Public Hearing and - consideration on second reading
set for 5:30 P.M. on October 14 1997.
Mayor
TTEST-
Town'Clerk
INTRODUCED, READ AND ADOPTED on second reading and ordered
posted the 14t1day of Oct. , 1997.
ATTE T:
Town Clerk
Mayor
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APPROVED:
--4'aJJk----
Tow Attorney
19
STATE OF COLORADO )
COUNTY OF EAGLE ) SS
TOWN OF AVON )
NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN
COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30'P.M. ON THE 14TH
DAY OF OCTOBER, 1997, AT THE TOWN MUNICIPAL BUILDING.FOR THE
PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 97 -10
SERIES OF 1997:
AN ORDINANCE AMENDING TITLE 5 OF THE TOWN OF AVON
MUNICIPAL CODE TO PROVIDE FOR THE REGULATION OF
PAWNBROKERS
A copy,of said Ordinance is attached hereto, and is also on file,
at the office of the Town Clerk,-and may be inspected during
regular business hours.
Following this hearing, the Council may consider final passage of
this Ordinance.
This notice is given and posted by order of the Town Council of
the Town of Avon, Colorado
Dated this 1st day of October, 1997.E --.__
TOWN OF AWN, COLORADO
BY:
Patty Lambe, CMC
Town Clerk
POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON
OCTOBER 1, 1997;
EAGLEBEND APARTMENTS - CLUBHOUSE LAUNDRY;
CITY MARKET IN THE MAIN LOBBY_
COASTAL MART, INC.; AND
AV09-MUNICIPAL BUILDING IN THE MAIN LOBBY