Indiana Code 28-7-5-10.1. Ceasing business as a pawnbroker; requirements; appointment of liquidating agent; two month redemption period; partial payments by pledgers
(1) Notify the department of:
Terms Used In Indiana Code 28-7-5-10.1
- Department: means the department of financial institutions. See Indiana Code 28-7-5-2
- Director: refers to the director of the department. See Indiana Code 28-7-5-2
- Month: means a period extending from a given date in one (1) calendar month to the like date in the succeeding calendar month or, if there is no such like date, then to the last day of the succeeding calendar month. See Indiana Code 28-7-5-2
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Pawnbroker: means any person, partnership, association, limited liability company, or corporation that engages in the pawn business. See Indiana Code 28-7-5-2
- Pledger: means the person who delivers personal property into the possession of a pawnbroker as security for a loan. See Indiana Code 28-7-5-2
(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.
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.