§ 47 — Second-hand business

New York § 47

• Jurisdiction: New York
• Law GBS: General Business
• Art. 5: Collateral Loan Brokers

Text

§ 47. Second-hand business. A collateral loan broker may purchase\nitems of personal property in accordance with this section, provided\nhowever that a collateral loan broker shall not receive in pawn, as a\npledge or as a purchase any instrument or weapon mentioned in section\n265.05 of the penal law. A collateral loan broker may purchase back any\npledge offered for sale by him or her at public auction and may\nthereafter sell such pledge if the pledgor fails to redeem within ten\ndays or may purchase any pledge offered for sale by any other collateral\nloan broker at private sale or public auction. Nothing in this article\nshall prohibit a collateral loan broker from purchasing a pawn ticket\nfrom a pledgor, his or her heirs or assigns upon the request of such\npledgor, heir or assign, ninety or more days after the item was pawned.\nIf the pawn ticket is sold to a collateral loan broker the pledgor, his\nor her heirs or assigns shall be entitled to redeem said ticket within\nten days thereafter by tendering to the collateral loan broker the\namount paid by the collateral loan broker for the ticket. Nothing shall\nprohibit the sale of new or second-hand property upon the premises where\nsuch collateral loan business is conducted, nor the purchase of new or\nsecond-hand property, except as otherwise expressly prohibited herein. A\nperson selling any item to a collateral loan broker, upon the premises\nof a collateral loan broker, may cancel the transaction within five\nbusiness days, provided that the seller tenders the full purchase price,\ntogether with a cancellation fee not to exceed ten dollars for sales\nequal to or greater than five hundred dollars, seven dollars for sales\nequal to or greater than one hundred dollars but less than five hundred\ndollars, or four dollars for sales less than one hundred dollars. A\nperson selling jewelry, watches, precious stones, precious metals or\ncoins to a collateral loan broker shall be afforded the option of\nconverting the sale to a loan, provided the option is exercised within\nfourteen days from the date of the sale (the loan shall be in the\nprincipal amount of not less than eighty percent of the sale price).\n A collateral loan broker engaged in the purchase or sale of\nsecond-hand articles, other than pledges or pawn tickets, shall comply\nwith local laws or regulations governing dealers in second-hand\narticles. A collateral loan broker engaged in the purchase of\nsecond-hand articles shall provide the seller a receipt setting forth\nthe item or items purchased and the purchase price for each item.\nAdditionally, the receipt shall include a notice advising the seller of\nthe option to cancel the transaction within five business days or\nconvert the sale of jewelry, watches, precious stones, precious metals\nand coins to a loan within fourteen days of the sale in accordance with\nthis section.\n A collateral loan broker purchasing articles from the general public\nshall display in a conspicuous place, in his or her shop, a sign\nstating:\n " PURSUANT TO ARTICLE 5 OF THE NEW YORK STATE GENERAL BUSINESS LAW A\nCOLLATERAL LOAN BROKER IS AUTHORIZED TO PROVIDE LOANS ON ITEMS PLEDGED\nOR PURCHASE ITEMS OFFERED FOR SALE. YOU HAVE THE RIGHT TO USE AN ITEM AS\nCOLLATERAL FOR A LOAN OR SELL THE ITEM IN ACCORDANCE WITH STATE AND\nLOCAL LAW. ALL SALES MAY BE CANCELLED WITHIN FIVE BUSINESS DAYS IN\nACCORDANCE WITH SAID ARTICLE 5. A SALE OF JEWELRY, WATCHES, PRECIOUS\nSTONES, PRECIOUS METALS OR COINS CAN BE CONVERTED TO A LOAN WITHIN 14\nDAYS FROM THE DATE OF THE SALE."\n Such sign shall be made of a durable material, with letters being at\nleast one inch high and have a stroke of at least one-quarter inch. The\nletters and background shall be of contrasting colors.\n