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
items of personal property in accordance with this section, provided
however that a collateral loan broker shall not receive in pawn, as a
pledge or as a purchase any instrument or weapon mentioned in section
265.05 of the penal law. A collateral loan broker may purchase back any
pledge offered for sale by him or her at public auction and may
thereafter sell such pledge if the pledgor fails to redeem within ten
days or may purchase any pledge offered for sale by any other collateral
loan broker at private sale or public auction. Nothing in this article
shall prohibit a collateral loan broker from purchasing a pawn ticket
from a pledgor, his or her heirs or assigns upon the request of such
pledgor, heir or assign, ninety or more days after the item was pawned.
If the pawn ticket is sold to a collateral loan broker the pledgor, his
or her heirs or assigns shall be entitled to redeem said ticket within
ten days thereafter by tendering to the collateral loan broker the
amount paid by the collateral loan broker for the ticket. Nothing shall
prohibit the sale of new or second-hand property upon the premises where
such collateral loan business is conducted, nor the purchase of new or
second-hand property, except as otherwise expressly prohibited herein. A
person selling any item to a collateral loan broker, upon the premises
of a collateral loan broker, may cancel the transaction within five
business days, provided that the seller tenders the full purchase price,
together with a cancellation fee not to exceed ten dollars for sales
equal to or greater than five hundred dollars, seven dollars for sales
equal to or greater than one hundred dollars but less than five hundred
dollars, or four dollars for sales less than one hundred dollars. A
person selling jewelry, watches, precious stones, precious metals or
coins to a collateral loan broker shall be afforded the option of
converting the sale to a loan, provided the option is exercised within
fourteen days from the date of the sale (the loan shall be in the
principal amount of not less than eighty percent of the sale price).
A collateral loan broker engaged in the purchase or sale of
second-hand articles, other than pledges or pawn tickets, shall comply
with local laws or regulations governing dealers in second-hand
articles. A collateral loan broker engaged in the purchase of
second-hand articles shall provide the seller a receipt setting forth
the item or items purchased and the purchase price for each item.
Additionally, the receipt shall include a notice advising the seller of
the option to cancel the transaction within five business days or
convert the sale of jewelry, watches, precious stones, precious metals
and coins to a loan within fourteen days of the sale in accordance with
this section.
A collateral loan broker purchasing articles from the general public
shall display in a conspicuous place, in his or her shop, a sign
stating:
” PURSUANT TO ARTICLE 5 OF THE NEW YORK STATE GENERAL BUSINESS LAW A
COLLATERAL LOAN BROKER IS AUTHORIZED TO PROVIDE LOANS ON ITEMS PLEDGED
OR PURCHASE ITEMS OFFERED FOR SALE. YOU HAVE THE RIGHT TO USE AN ITEM AS
COLLATERAL FOR A LOAN OR SELL THE ITEM IN ACCORDANCE WITH STATE AND
LOCAL LAW. ALL SALES MAY BE CANCELLED WITHIN FIVE BUSINESS DAYS IN
ACCORDANCE WITH SAID ARTICLE 5. A SALE OF JEWELRY, WATCHES, PRECIOUS
STONES, PRECIOUS METALS OR COINS CAN BE CONVERTED TO A LOAN WITHIN 14
DAYS FROM THE DATE OF THE SALE.”
Such sign shall be made of a durable material, with letters being at
least one inch high and have a stroke of at least one-quarter inch. The
letters and background shall be of contrasting colors.
