Great News! Pawnbrokers can be licensed to buy Gold

The following amended section 47 allows Collateral Loan Brokers to buy and sell second-hand merchandise with some restriction please read carefully.

 

§ 47. Second-hand business. A collateral loan broker may purchase\r\n items of personal property in accordance with this section, provided\r\n however that a collateral loan broker shall not receive in pawn, as a\r\n pledge or as a purchase any instrument or weapon mentioned in section\r\n 265.05 of the penal law. A collateral loan broker may purchase back any\r\n pledge offered for sale by him or her at public auction and may\r\n thereafter sell such pledge if the pledgor fails to redeem within ten\r\n days or may purchase any pledge offered for sale by any other collateral\r\n loan broker at private sale or public auction. Nothing in this article\r\n shall prohibit a collateral loan broker from purchasing a pawn ticket\r\n from a pledgor, his or her heirs or assigns upon the request of such\r\n pledgor, heir or assign, ninety or more days after the item was pawned.\r\n If the pawn ticket is sold to a collateral loan broker the pledgor, his\r\n or her heirs or assigns shall be entitled to redeem said ticket within\r\n ten days thereafter by tendering to the collateral loan broker the\r\n amount paid by the collateral loan broker for the ticket. Nothing shall\r\n prohibit the sale of new or second-hand property upon the premises where\r\n such collateral loan business is conducted, nor the purchase of new or\r\n second-hand property, except as otherwise expressly prohibited herein. A\r\n person selling any item to a collateral loan broker, upon the premises\r\n of a collateral loan broker, may cancel the transaction within five\r\n business days, provided that the seller tenders the full purchase price,\r\n together with a cancellation fee not to exceed ten dollars for sales\r\n equal to or greater than five hundred dollars, seven dollars for sales\r\n equal to or greater than one hundred dollars but less than five hundred\r\n dollars, or four dollars for sales less than one hundred dollars. A\r\n person selling jewelry, watches, precious stones, precious metals or\r\n coins to a collateral loan broker shall be afforded the option of\r\n converting the sale to a loan, provided the option is exercised within\r\n fourteen days from the date of the sale (the loan shall be in the\r\n principal amount of not less than eighty percent of the sale price).

 

A collateral loan broker engaged in the purchase or sale of\r\n second-hand articles, other than pledges or pawn tickets, shall comply\r\n with local laws or regulations governing dealers in second-hand\r\n articles. A collateral loan broker engaged in the purchase of\r\n second-hand articles shall provide the seller a receipt setting forth\r\n the item or items purchased and the purchase price for each item.\r\n Additionally, the receipt shall include a notice advising the seller of\r\n the option to cancel the transaction within five business days or\r\n convert the sale of jewelry, watches, precious stones, precious metals\r\n and coins to a loan within fourteen days of the sale in accordance with\r\n this section.

 

A collateral loan broker purchasing articles from the general public\r\n shall display in a conspicuous place, in his or her shop, a sign\r\n stating:

 

” PURSUANT TO ARTICLE 5 OF THE NEW YORK STATE GENERAL BUSINESS LAW A\r\n COLLATERAL LOAN BROKER IS AUTHORIZED TO PROVIDE LOANS ON ITEMS PLEDGED\r\n OR PURCHASE ITEMS OFFERED FOR SALE. YOU HAVE THE RIGHT TO USE AN ITEM AS\r\n COLLATERAL FOR A LOAN OR SELL THE ITEM IN ACCORDANCE WITH STATE AND\r\n LOCAL LAW. ALL SALES MAY BE CANCELLED WITHIN FIVE BUSINESS DAYS IN\r\n ACCORDANCE WITH SAID ARTICLE 5. A SALE OF JEWELRY, WATCHES, PRECIOUS\r\n STONES, PRECIOUS METALS OR COINS CAN BE CONVERTED TO A LOAN WITHIN 14\r\n DAYS FROM THE DATE OF THE SALE.”

 

Such sign shall be made of a durable material, with letters being at\r\n least one inch high and have a stroke of at least one-quarter inch. The\r\n letters and background shall be of contrasting colors.