§ 28-7-5-16 — Books, accounts, and records; examination and costs; bills of sale; purchase of precious metal; record of control; examination of vendors

Indiana § 28-7-5-16

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

Text

(a) The licensee shall keep and use in the
licensee's business such books, accounts, and records as will enable the
department to determine whether the licensee is complying with this
chapter and with the rules adopted by the department under this
chapter. Every licensee shall preserve such books, accounts, and
records, including cards used in the card system for at least two (2)
years after making the final entry on any loan recorded in its books,
accounts, and records. The books and records of the licensee shall be
kept so that the pawnbroking business transacted in Indiana may be
readily separated and distinguished from the business of the licensee
transacted elsewhere and from any other business in which the licensee
may be engaged. To determine whether the licensee is complying with
this chapter and with rules adopted by the department under this
chapter, the department may examine the books, accounts, and records
required to be kept by the licensee under this subsection. If the
department examines the books, accounts, and records of the licensee
under this subsection, the licensee shall pay all reasonably incurred
costs of the examination in accordance with the fee schedule adopted
under IC 28-11-3-5. Any costs required to be paid under this section
shall be paid not later than sixty (60) days after the person receives a
notice from the department of the costs being assessed. The department
may impose a fee, in an amount fixed by the department under IC 28-11-3-5, for each day that the assessed costs are not paid, beginning
on the first day after the sixty (60) day period described in this
subsection.
(b) If a pawnbroker, in the conduct of the business, purchases an
article from a seller, the purchase shall be evidenced by a bill of sale
properly signed by the seller. All bills of sale must be in duplicate and
must recite the following separate items:
(1) Date of bill of sale.
(2) Amount of consideration.
(3) Name of pawnbroker.
(4) Description of each article sold. However, if multiple articles
of a similar nature that do not contain an identification or serial
number (such as precious metals, gemstones, musical recordings,
video recordings, books, or hand tools) are delivered together in
one (1) transaction, the description of the articles is adequate if
the description contains the quantity of the articles delivered and
a physical description of the type of articles delivered, including
any other unique identifying marks, numbers, names, letters, or
special features.
(5) Signature of seller.
(6) Address of seller.
(7) Date of birth of the seller.
(8) The type of government issued identification used to verify the
identity of the seller, together with the name of the governmental
agency that issued the identification, and the identification
number present on the government issued identification.
(c) The original copy of the bill of sale shall be retained by the
pawnbroker. The second copy shall be delivered to the seller by the
pawnbroker at the time of sale. The heading on all bill of sale forms
must be in boldface type.
(d) If a pawnbroker, in the conduct of the business, purchases
precious metal (as defined in IC 24-4-19-6) from a seller, the
pawnbroker shall, for at least ten (10) calendar days after the date the
pawnbroker purchases the precious metal, retain the precious metal:
(1) at the pawnbroker's permanent place of business where the
pawnbroker purchased the precious metal; and
(2) separate from other precious metal.
(e) Each licensee shall maintain a record of control indicating the
number of accounts and dollar value of all outstanding pawnbroking
receivables.
(f) If a licensee contracts with an outside vendor to provide a service
that would otherwise be undertaken internally by the licensee and be
subject to the department's routine examination procedures, the person
that provides the service to the licensee shall, at the request of the
director, submit to an examination by the department. If the director
determines that an examination under this subsection is necessary or
desirable, the examination may be made at the expense of the person
to be examined. If the person to be examined under this subsection
refuses to permit the examination to be made, the director may order
any licensee that receives services from the person refusing the
examination to:
(1) discontinue receiving one (1) or more services from the
person; or
(2) otherwise cease conducting business with the person.
Formerly: Acts 1935, c.195, s.16. As amended by P.L.263-1985,
SEC.192; P.L.14-1992, SEC.142; P.L.42-1993, SEC.78; P.L.80-1998,
SEC.15; P.L.163-2001, SEC.2; P.L.10-2006, SEC.46 and P.L.57-2006,
SEC.46; P.L.35-2010, SEC.176; P.L.27-2012, SEC.97; P.L.222-2013,
SEC.7; P.L.137-2014, SEC.31; P.L.186-2015, SEC.43; P.L.149-2016,
SEC.79; P.L.136-2018, SEC.212.