Oregon Statutes 726.380 – Loss of or injury to pledge; storage of large items off premises; lien on pledge; rules
(1) A pawnbroker is liable for the loss of a pledge or a part of a pledge or for an injury to a pledge that results from failure to exercise reasonable care. Reasonable care includes maintaining sufficient insurance coverage against possible loss as a result of fire, theft and burglary so as to protect the interest of the pledgor for the amount of the loan.
Terms Used In Oregon Statutes 726.380
- Lien: A claim against real or personal property in satisfaction of a debt.
- Pawnbroker: means a person, copartnership, association or corporation that:
(a) Lends money at a rate of interest greater than 10 percent per annum on the deposit or pledge of personal property;
(b) Purchases personal property on the direct or implied condition of selling the personal property back at a stipulated price that would amount to paying interest or consideration in excess of 10 percent per annum; or
(c) Does business as a storage warehouse operator and lends money at a rate of interest greater than 10 percent per annum upon goods, wares, merchandise or personal property pledged or deposited as collateral security. See Oregon Statutes 726.010
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
- Pledge: means personal property deposited with a pawnbroker in the course of the business of the pawnbroker. See Oregon Statutes 726.010
- Pledge loan: means a loan that a pawnbroker makes to a pledgor and that is secured by a pledge. See Oregon Statutes 726.010
- Pledgor: means a person who delivers a pledge into the possession of a pawnbroker, unless the person discloses that the person is or was acting for another, in which event 'pledgor' means the disclosed principal. See Oregon Statutes 726.010
(2)(a) A pawnbroker may store large items, including items identified in paragraph (c) of this subsection, off the premises of the business location at which the pawnbroker makes the pledge loan only if:
(A) The pawnbroker and the pledgor agree in writing that the pawnbroker may store the large item as described in this paragraph;
(B) The pawnbroker maintains a business location at which the pawnbroker displays a license the Director of the Department of Consumer and Business Services issued under ORS § 726.080; and
(C) The off-premises location complies with all requirements this chapter or the director sets forth for pawnbroker business locations with respect to security, bonding, insurance and notice.
(b) A pawnbroker may have only one off-premises location at which the pawnbroker stores large items for each business location for which the pawnbroker has the license described in paragraph (a)(B) of this subsection.
(c) A pawnbroker shall hold a pledge in a gated, secured facility that is designed, constructed, furnished and maintained to present physical deterrents to a person‘s ability to enter into the facility without authorization and remove the pledge, if the pledge is:
(A) A boat, as defined in ORS § 830.005;
(B) A snowmobile, as defined in ORS § 801.490;
(C) A trailer, as described in ORS § 726.010 (2)(a)(D); or
(D) An all-terrain vehicle that is not required to be registered with the Department of Transportation.
(d) The director by rule may define ‘large items’ for the purposes of this subsection.
(3) The pawnbroker has the burden of proof to establish due care if a pledge is lost.
(4) The pawnbroker has a first lien on any pledge for the amount of the pledge loan and interest in all cases except where goods are stolen or where a prior lien exists by virtue of any provision of law. [Amended by 1979 c.202 § 5; 2013 c.261 § 4; 2019 c.10 § 3]