§ 28-7-5-10.1 — Ceasing business as a pawnbroker; requirements; appointment of liquidating agent; two month redemption period; partial payments by pledgers

Indiana § 28-7-5-10.1

• Jurisdiction: Indiana
• Art. 7: SPECIALIZED FINANCIAL INSTITUTIONS
• Ch. 5: Pawnbrokers

Text

1. (a) A licensee that decides to cease
engaging in business as a pawnbroker in Indiana shall do the following
not later than thirty (30) days before closing the licensee's pawnbroking
business:
(1) Notify the department of:
(A) the licensee's intention to cease engaging in business as a
pawnbroker in Indiana; and
(B) the date on which the licensee's pawnbroking business will
cease.
(2) Surrender the license to the department.
(3) Provide the following to all pledgers that have loans
outstanding with the licensee:
(A) Notice of:
(i) the licensee's intention to cease engaging in business as a
pawnbroker in Indiana; and
(ii) the date on which the licensee's pawnbroking business
will cease.
(B) Instructions, approved by the director, on how pledged
articles may be redeemed before the date identified under
clause (A)(ii).
(b) If:
(1) a licensee ceases engaging in business as a pawnbroker in
Indiana without complying with subsection (a); and
(2) the director determines that it is in the public interest that the
department oversees the liquidation of the licensee's business;
the director may appoint a liquidating agent to conclude the affairs of
the licensee's pawnbroker business in Indiana. The department may use
the proceeds of the licensee's bond under section 5.5 of this chapter to
pay the expenses of the liquidation.
(c) If:
(1) a license is revoked under section 13 of this chapter and the
director determines that it is not in the best interests of the public
for the licensee to liquidate the business; or
(2) the director otherwise determines that it is in the best interests
of the public;
the director may appoint a liquidating agent to conclude the affairs of
the licensee's pawnbroker business in Indiana. The department may use
the proceeds of the licensee's bond under section 5.5 of this chapter to
pay the expenses of liquidation.
(d) If a pawnbroker gives notice to the department under subsection
(a) that the pawnbroker intends to cease engaging in business as a
pawnbroker in Indiana, the pawnbroker may accept during the two (2)
months immediately following the maturity of a loan that the
pawnbroker has made to any pledger, as described in section 30(a) of
this chapter, partial payments from the pledger for the loan. A partial
payment made under this subsection must be applied to the loan's
principal and used to reduce the pledger's loan obligation. Acceptance
of partial payments under this subsection does not require the
pawnbroker to extend the two (2) month period described in section
30(a) of this chapter with respect to any loan.

Legislative History

As added by P.L.213-2007, SEC.71; P.L.217-2007, SEC.69. Amended by P.L.90-2008, SEC.51; P.L.35-2010, SEC.172; P.L.216-2013, SEC.37.