§ 6-28. Pawnbrokers and second-hand goods dealers.

(a)

Definitions. When used in this section, the following words shall mean:

(1)

Pawnbroker: A person who loans money on deposit or pledge of personal property, or other valuable thing, or who deals in the purchasing of personal property or other valuable thing on condition of selling the same back again at a stipulated price, or who loans money secured by chattel mortgage on personal property, taking possession of the property or any part thereof so mortgaged.

(2)

Second-hand goods dealer: A person engaging in the business of buying or selling or both of second-hand goods of any kind excepting goods and merchandise defined as junk or used metal under City Code provisions, used, wrecked or dismantled motor vehicles or motor vehicles intended to be wrecked or dismantled, and goods and merchandise taken as part or full payment for new goods and merchandise.

(b)

License required. It is unlawful for any person to engage in the business of pawnbroker or in the business of dealer in second-hand goods without a license therefor from the city.

(c)

Application—Second-hand goods and antiques. Any person desiring to have an exhibition, convention, show or exposition of second-hand goods or antiques for a limited period of time may apply to the council for a license so to do. The application shall contain the name, or names, of the persons desiring or who will be responsible for the exhibition, convention, show or exposition, and the dates, time and place during which such exhibition, convention, show or exposition will be held, provided that such period of time shall not exceed five calendar days; and the application shall give the name and address of the person, or persons who will be responsible for the conduct and management of such exhibition, convention, show or exposition, and such person shall give bond to the city, written by a surety company authorized to do business in the State of Minnesota in the penal sum of $10,000.00, and conditioned that the principal named therein will observe all laws in relation to dealers in second-hand goods and antiques and conduct the business in conformity thereto, and will account for and deliver to any person legally entitled thereto any goods, wares or merchandise, article or thing, which may have come into his or their hands through the business transacted at such exhibition, convention, show or exhibition, or, in lieu thereof, will pay in money to such person or persons the reasonable value thereof.

(d)

License fees.

(1)

The annual license fee for a pawnbroker's license with an established place of business in International Falls shall be $25.00.

(2)

The annual license fee for a second-hand goods dealer with an established place of business in International Falls shall be $25.00.

(3)

The limited license fee for a second-hand goods and antique dealer for an exhibition, convention, show or exposition shall be $300.00.

(e)

Expiration of licenses. All licenses under this section shall expire on December 31 of each year.

(f)

Bonds required. Before a license shall be issued, bonds in the following amounts shall be filed with the city administrator:

(1)

Pawnbroker, with an established place of business in International Falls ..... $1,000.00
bond

(2)

Second hand goods dealer, with an established place of business in International Falls ..... $1,000.00
bond

(3)

Second-hand goods dealer, with limited license ..... $10,000.00
bond

(g)

Condition of bonds. All such bonds shall be conditioned that the principal named therein will observe all laws in relation to pawnbrokers, and dealers in second-hand goods and conduct his business in conformity thereto, and that he will account for and deliver to any person legally entitled thereto, any goods, wares or merchandise, article or thing, which may have come into his hands through his business as such pawnbroker or dealer in second-hand goods, or in lieu thereof will pay in money to such person or persons the reasonable value thereof.

(h)

Records required. Every person who shall be engaged in the business of pawnbroker or dealer in second-hand goods shall keep a book in which shall be clearly written in ink, at the time of each loan or purchase, an accurate account or description, in the English language, of the goods, article or thing pawned, pledged or purchased, the amount of money loaned or paid therefor, the time of the receipt of the same, the name, residence and description of the person pawning, pledging or selling the same as verified by a government issued photo identification card. Such book, as well as the article pawned or purchased, shall at all reasonable times be open to the inspection of the mayor or any member of the police force.

(i)

Receipts required. Every such pawnbroker and dealer in second-hand goods purchasing or receiving on deposit for a loan any article or personal property shall give to the person selling or depositing such article or personal property a plain written or printed ticket or receipt for the article or personal property so sold or deposited, showing the terms of such sale or loan and a copy of the entries in his book above required relating to such sale or loan.

(j)

Reports to police. Every pawnbroker and dealer in second-hand goods, upon being served with a written notice to do so by a member of the police department, shall make out and deliver to the chief of police, upon blank forms to be furnished by the police department, by the end of the second business day following such service exclusive of the day of such service, a legible correct copy from the book required in subsection (h) of this section, of all personal property or other valuable things received or deposited or purchased during such time period specified in the notice together with the date when received or purchased and the name, address and description of the person or persons by whom left in pledge or from whom the same were purchased and form of government identification used for verification. Provided, that no person shall be required to furnish such description of any property purchased from merchants, manufacturers or wholesale dealers having an established place of business, or of goods purchased at open sale from any bankrupt stock. But such property and goods must be accompanied by a bill of sale or other evidence of open or legitimate purchase, which must be shown to the mayor or any member of the police force when demanded.

(k)

Redemption period. Any person pledging an article shall have three months to redeem the same before the pledge becomes forfeitable.

(l)

Required holding period. No personal property received on deposit by any pawnbroker shall be redeemed from the place of business of such pawnbroker before the end of the third business day next after the deposit or pledge or purchase of any personal property, and no personal property purchased by any such pawnbroker or dealer in second-hand goods shall be sold or disposed of in any way within the period of ten days next after the delivery to the chief of police of the copy and statement relating thereto as required in subsection (j) of this section.

(m)

Police order to hold property. Whenever the chief of police, or any member of the police force designated by the chief of police, shall notify any dealer or dealers not to sell any property so received on deposit or purchased by them or permit the same to be redeemed, such property shall not be sold or permitted to be redeemed until such time as may be determined by the chief of police or member of the police force designated by the chief of police so requiring them to be held.

(n)

Hours. No property shall be received as a pledge or purchase by any dealer on any day before 8:00 a.m., nor any day after 8:00 p.m. Further, no pawnbroker or dealer in second-hand goods shall be open for business on the following holidays: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day and Christmas Day.

(o)

Business at only one place. Any license issued under this section shall authorize the licensee to carry on such business only at the place designated in such license. No licensee shall store or pile, or cause or permit to be stored or piled, any second-hand goods in any building, yard, enclosure, vacant lot, street or alley or at any other place than the place designated in his said license.

(p)

Use of "three balls." No person shall exhibit and maintain any sign usually known as a pawnbroker's sign, such as "three balls", or any number of balls, or any manner advertise to loan money on deposit, or pledge of personal property or other valuable thing, without being licensed under this section.

(q)

Minors; prohibitions. It is unlawful for any person under the age of 18 years, except with the written consent of the parent or guardian of the minor to each particular transaction, to sell, pawn or pledge any personal property or other valuable thing with any person licensed to do business under this section. It is also unlawful for any person under the age of 18 years to represent to any person licensed under the provisions of this section, at the time of his selling, pawning, attempting to pawn, or pledging of any personal property, that he is 18 years of age or over.

(r)

Dealing with minors or persons of limited capacity. It is unlawful for any pawnbroker or dealer in second-hand goods to purchase or receive on deposit any personal property, goods, wares, merchandise, article or thing, from minors except with the written consent of the parent or guardian of the minor to each particular transaction, persons of unsound mind, or intoxicated persons.

(s)

License condition. Any applicant for a license as a dealer in second-hand goods shall specify in his application the type of goods, wares or merchandise which he desires to deal in and the license, if issued, shall limit the dealer to the type of goods, wares or merchandise specified in the application.

(Ord. No. 19, 2nd series, eff. 3-31-82; Ord. No. 11, 4th series, eff. 2-21-04; Ord. No. 6, 5th Series, eff. 12-31-10)