N.Y. General Business Law § 44: Memorandum to be given

§ 44. Memorandum to be given. 1. Every such collateral loan broker

shall at the time of each loan deliver to the person pawning or pledging

any goods, article or thing, a memorandum or note signed by him

containing the substance of the entry required to be made in his book by

the last preceding section. Notwithstanding any general or special

statutes, local laws and ordinances to the contrary, no collateral loan

broker shall ask, demand or receive a service charge greater than ten

dollars for loans equal to or greater than five hundred dollars, or

seven dollars for loans equal to or greater than one hundred dollars but

less than five hundred dollars for any such memorandum or note, provided

that for loans less than one hundred dollars a service charge not

greater than four dollars may be imposed. The holder of such memorandum

or note shall be presumed to be the person entitled to redeem the pledge

and the collateral loan broker shall deliver such article to the person

so presenting such memorandum or note on payment of principal and

interest. Should such ticket be lost or mislaid the pawnor shall at

once apply to the collateral loan broker, in which case it shall be the

duty of the collateral loan broker to permit such person to examine his

books, and on finding the entry for said ticket, note or memorandum so

lost and upon his giving to the collateral loan broker an exact

description of the article pawned the collateral loan broker shall issue

a second or stop ticket for the same, provided such person shall furnish

to the collateral loan broker a lost instrument bond in an amount equal

to the fair market value of the pledge or, in the alternative, pay a

lost ticket charge of one percent of the amount of the loan, or five

dollars, whichever is greater. In case such pawnor neglects to so apply

and examine said books and receive such memorandum or note in the manner

above stated, the collateral loan broker will be bound to deliver the

pledge to any person producing such ticket for the redemption thereof.

This article is not to be construed as in any manner limiting or

affecting such collateral loan broker's common law liability in cases

where goods are stolen or other legal defects of title exist in the

pledgor.

2. In addition to the information required to be furnished pursuant to

subdivision one of this section a pawn ticket shall contain the

following notice:

NOTICE OF ELECTION

(a) The holder of this ticket may redeem the article pledged at any

time prior to sale at private sale or public auction first following

default. The article pledged may not be sold at private sale or auction

until it has remained four months in the collateral loan broker's

possession.

(b) If the article pledged is sold at private sale or public auction,

money, if any, in excess of the amount of the loan, interest, lawful

auctioneer's commission, if applicable, lawful extra care charges and

the expenses of the advertisement of sale, if applicable, shall be paid

to the holder of the pawn ticket.

(c) If the collateral loan broker shall purchase the article pledged

at auction the holder shall have an additional ten days to redeem the

article pledged by paying to the collateral loan broker the amount of

the loan, interest, lawful auctioneer's commission, lawful extra care

charges and the expense of the advertisement of sale.

(d) A holder may sell this ticket to a third party at any time prior

to private sale or auction, or he may sell this ticket to the collateral

loan broker any time ninety or more days after the article was pledged.

(e) If this ticket is sold to a collateral loan broker the holder may

redeem the ticket within ten days after the sale by paying to the

collateral loan broker the amount paid for the ticket.

3. Notwithstanding any general, special or local law or ordinance to

the contrary, if a collateral loan broker in good faith and without

knowledge extends credit on a loan, the collateral for which was

entrusted to the pledgor on consignment or was entrusted by a merchant

dealing in goods of the kind pledged to the pledgor who was a merchant

dealing in goods of the kind pledged, the collateral loan broker shall

be required to relinquish the collateral to the legal owner provided the

amount of the loan and interest due is paid.