The Cherokee Code: Published by Order of the Tribal Council of the Eastern Band of Cherokee Indians

Chapter 91 - Pawnbroker

Sec. 91-1. Definitions.

As used in this chapter, the following definitions shall apply:

(a) Pawn or pawn transaction means a written bailment of personal property as security for a debt, redeemable on certain terms within 180 days, unless renewed, and with an implied power of sale on default.

(b) Pawnbroker means any person engaged in the business of lending money on the security of pledged goods and who may also purchase merchandise for resale from dealers and traders.

(c) Pawnshop means the location at which, or premises in which a pawnbroker regularly conducts business.

(d) Person means any individual, corporation, joint venture, association, or any other legal entity, however organized.

(e) Pledged goods means tangible personal property which is deposited with, or otherwise actually delivered into, the possession of a pawnbroker in the course of his business in connection with a pawn transaction.

(f) Purchase means any item purchased from an individual for the purpose of resale whereby the seller no longer has a vested interest in the item.

(Ord. No. 442, 12-5-1996)

Sec. 91-2. License.

(a) To be eligible for a pawnbroker's license an applicant must:

(1) Be of good moral character; and

(2) Not have been convicted of a felony within the last ten years.

(b) Every person, firm or corporation desiring to engage in the business of pawnbroker shall petition the Tribal Business Committee for a license to conduct such business. Such petitions shall provide:

(1) The name and address of the person, and in a firm or corporation, the names and addresses of the persons composing such firm or of the officers, directors, and stockholders of such corporation, excluding shareholders of publicly traded companies;

(2) The name of the business and the street and the mailing address where the business is to be operated;

(3) A statement indicating the amount of net assets or capital proposed to be used by the petitioner in operation of the business; this statement shall be accompanied by an unaudited statement from an accountant or certified public accountant verifying the information contained in the accompanying statement;

(4) An affidavit by the petitioner that he has not been convicted of a felony; and

(5) A certificate from the Chief of Police or Sheriff of a North Carolina county, or the State Bureau of Investigation that the petitioner has not been convicted of a felony.

(c) Any license granted under this chapter may be revoked after a hearing before the Business Committee for substantial abuses of this chapter by the licensee. There is a right to appeal the decision of the Business Committee within ten days to the Tribal Council.

(Ord. No. 442, 12-5-1996)

Sec. 91-3. Bonding or surety requirement.

(a) Every person, firm, or corporation licensed under this chapter shall, at the time of receiving the license, file a bond payable to the Eastern Band of Cherokee Indians, the sum of $5,000.00, to be executed by the licensee, and by two responsible sureties or a surety company licensed to do such business in the State of North Carolina to be approved by the Tribe which shall be for the faithful performance of the requirements and obligations pertaining to the business so licensed.

(b) The bond shall be forfeited to the Tribe upon breach thereof.

(c) Any person, who obtains a judgment against a pawnbroker and upon which judgment execution is returned unsatisfied, may maintain an action in his own name upon the bond, to satisfy the judgment.

(Ord. No. 442, 12-5-1996)

Sec. 91-4. Authorization of pawnbroker license.

A pawnbroker licensee is authorized to:

(1) Make loans on pledges of tangible personal property;

(2) Deal in bullion stocks;

(3) Purchase merchandise for resale from dealers, traders, and wholesale suppliers; and

(4) Use its capital and funds in any lawful manner within the general scope and purpose of its creation.

Notwithstanding the provisions of this section, no pawnbroker has the authority enumerated in this section, unless s/he has fully complied with the laws regulating the particular transactions involved.

(Ord. No. 442, 12-5-1996)

Sec. 91-5. Required records.

(a) Every pawnbroker shall keep consecutively numbered records of each and every pawn transaction, which shall correspond in all essential particulars to a detachable pawn ticket or copy thereof attached to the records.

(b) The pawnbroker shall, at the time of making the pawn or purchase transaction, enter upon the pawn ticket a record of the following information which shall be typed or written in ink and in the English language:

(1) A clear and accurate description of the property, including model and serial number if indicated on the property;

(2) The name, residence address, phone number, and date of birth of the pledgor;

(3) Date of the pawn transaction;

(4) Type of identification and the identification number accepted from pledgor;

(5) Description of the pledgor including approximate height, weight, sex, and race;

(6) Amount of money advanced;

(7) The date due and the amount due;

(8) All monthly pawn charges, including interest, annual percentage rate on interest and total recovery fee; and

(9) Agreed upon "stated value" between pledgor and pawnbroker in case of loss or destruction of pledged item; unless otherwise noted, "stated value" is the same as the loan value.

(c) The following shall be printed on all pawn tickets:

(1) The statement that "ANY PERSONAL PROPERTY PLEDGED TO A PAWNBROKER WITHIN CHEROKEE TERRITORY IS SUBJECT TO SALE OR DISPOSAL WHEN THERE HAS BEEN NO PAYMENT MADE ON THE ACCOUNT FOR A PERIOD OF 60 DAYS PAST MATURITY DATE OF THE ORIGINAL CONTRACT. NO FURTHER NOTICE IS NECESSARY";

(2) The statement that "THE PLEDGOR OF THIS ITEM ATTESTS THAT IT IS NOT STOLEN, HAS NO LIENS NOR ENCUMBRANCES, AND IS THE PLEDGOR'S TO SELL OR PAWN";

(3) The statement that "THE ITEM PAWNED IS REDEEMABLE ONLY BY THE BEARER OF THIS TICKET OR BY IDENTIFICATION OF THE PERSON MAKING THE PAWN"; and

(4) A blank line for the pledgor's signature and the pawnbroker's signature or initials.

(d) The pledgor shall sign the pawn ticket and shall receive an exact copy of the pawn ticket which shall be signed or initialed by the pawnbroker or any employee of the pawnbroker.

(e) These records shall be a correct copy of the entries made of the pawn or purchase transaction and shall be carefully preserved without alteration, and shall be available during regular business hours.

(f) Except as otherwise provided in this chapter any person presenting a pawn ticket to a pawnbroker is presumed to be entitled to redeem the pledged goods described on the ticket.

(Ord. No. 442, 12-5-1996)

Sec. 91-6. Inspection.

The Chief of Police or his designee may enter the premises and randomly inspect any merchandise during regular business hours.

(Ord. No. 442, 12-5-1996)

Sec. 91-7. Fees and interest.

(a) No pawnbroker shall demand or receive an effective rate of interest greater than two percent per month, and no other charge of any description or for any purpose shall be made by the pawnbroker, except that the pawnbroker may charge, contract for, and recover an additional monthly fee for the following services including, but not limited to:

(1) Title investigation;

(2) Handling, appraisal and storage;

(3) Insuring a security;

(4) Application fee;

(5) Making daily reports to local law enforcement officers; and

(6) For other expenses, including losses of every nature, and all other services.

(b) In no event may the total of the above listed monthly fees on a pawn transaction exceed 20 percent of the principal up to a maximum of the following:

First month . . .. . . . . . . . . . . . .	$100.00
Second month . . . . . . . . . . . . . . .	75.00
Third month . . . . . . . . . . . . . . . . .	75.00
Fourth month and thereafter . . . .	50.00

Sec. 91-8. Limitations of transactions.

(a) In every pawn transaction:

(1) The original pawn contract shall have a maturity date of not less than 30 days, provided that nothing herein shall prevent the pledgor from redeeming the property before the maturity date;

(2) Any personal property pledged to a pawnbroker is subject to sale or disposal when there has been no payment made on the account for a period of 60 days past maturity date of the original contract; provided that the contract between the pledgor and the pawnbroker is renewable if renewal is agreed upon by both parties;

(3) Every pawn ticket or receipt for such pawn shall have printed thereon the provisions of subsection (1) of this subsection which shall constitute: (i) notice of such sale or disposal, (ii) notice of intention to sell or dispose of the property without further notice, and (iii) consent to such sale or disposal. The pledgor thereby forfeits all right, title and interest of, in and to such pawned property to the pawnbroker who thereby acquires absolute title to the same whereupon the debt is satisfied, and the pawnbroker may sell or dispose of the unredeemed pledges as his own property. Any sale or disposal of property under this section terminates all liability of the pawnbroker and vests in the purchaser the right to title, and interest of the borrower and the pawnbroker;

(4) If the borrower loses his pawn ticket he shall not thereby forfeit his right to redeem, but may, before the lapse of the redemption period, make an affidavit with indemnification for such loss. The affidavit shall describe the property pawned and shall take the place of the lost pawn ticket unless the pawned property has already been redeemed with the original pawn ticket; and

(5) A pledgor is not obligated to redeem pledged goods or make any payment on a pawn transaction.

(b) A pawnbroker shall not:

(1) Accept a pledge from a person under the age of 18 years;

(2) Make any agreement requiring the personal liability of a pledgor in connection with a pawn transaction;

(3) Accept any waiver, in writing or otherwise, of any right or protection accorded a pledgor under this chapter;

(4) Fail to exercise reasonable care to protect pledged goods from loss or damage;

(5) Fail to return pledged goods to a pledgor upon payment of the full amount due the pawnbroker on the pawn transaction. In the event such pledged goods are lost or damaged while in the possession of the pawnbroker, it shall be the responsibility of the pawnbroker to replace the lost or damaged goods with merchandise of like kind and equivalent value. In the event the pledgor and pawnbroker cannot agree as to the replacement, the pawnbroker shall reimburse the pledgor in the amount of the value agreed upon pursuant to section 91-5(b)(9);

(6) Take an article in pawn, pledge, or as security from any person, which is known to such pawnbroker to be stolen, unless there is written agreement with local police;

(7) Sell, exchange, barter, or remove from the pawnshop any goods pledged, pawned, or purchased earlier than 48 hours after the transaction, except in case of redemption by pledgor or items purchased for resale from wholesalers;

(8) Operate more than one pawnshop under one license, and such shop must be at a permanent place of business; or

(9) Take as pledged goods any manufactured mobile homes, recreational vehicle, or motor vehicle other than a motorcycle.

(Ord. No. 442, 12-5-1996)

Sec. 91-9. Prohibited conduct and penalty.

(a) It is unlawful for any person, firm or corporation to establish or conduct a business of pawnbroker unless such person, firm or corporation has procured a license to conduct business in compliance with the requirements of this chapter.

(b) Every person, firm, or corporation, their guests or employees, who shall knowingly violate any of the provisions of this chapter shall, on conviction thereof, be deemed guilty of a misdemeanor, and shall be fined a sum not to exceed $500.00 for each offense, and at the discretion of the court, may be imprisoned for a period of time not to exceed one year. If the violation is by an owner or major stockholder or managing partner of the pawnshop and the violation is knowingly committed by the owner, major stockholder, or managing partner of the pawnshop, then the license of the pawnshop may be suspended at the discretion of the court.

(c) The provisions of subsection (b) shall not apply to violations of which shall be prosecuted under other applicable criminal law.

(Ord. No. 442, 12-5-1996)

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