Requires persons pledging goods to a collateral loan broker or selling goods to a second hand dealer to sign a written statement sworn to be true

BILL NUMBER:A9153

Title of bill

An act to amend the general business law and the penal law, in relation to written false statements made by any person to a collateral loan broker or second hand dealer regarding any loan made by such broker or sale to such dealer

Purpose of general idea of bill

Add false declaration of ownership of pledged property to a pawnbroker to the definition of larceny.

To amend the Penal Law to make it a crime when a pledgor issues a false declaration of ownership to a pawnbroker in connection with making a loan.

Summary of specific provisions

1. General Business Law § 44 is amended by adding a new subdivision 4 to authorize the inclusion in a note or memorandum used in connection with a collateral loan transaction language advising the borrower that in signing the document, he or she is affirming that the statements therein are trued under penalty of the offenses of larceny and/or making a punishable false written statement.

2. The Penal Law is amended by adding anew § 210.45(2) specifically providing that a person commits the crime of making a punishable false written statement when he or she knowingly makes a false statement, which he or she does not believe to be true in connection with obtaining a loan from a collateral loanbroker or proceeds of sale to a second hand dealer. The loan/ sale document must contain a from notice to the effect that the false statements made therein are punishable. The crime is punishable as a class A misdemeanor.

Justification

A party seeking to secure a loan from a collateral loan- broker uses personal property (typically jewelry) as collateral. The borrower is required to affirm, in writing, that he or she is the owner of the property. Only a relatively small number of collateral loanbroker transactions involve stolen property. Career criminals are well aware of the record keeping requirements regarding property pledged to a collat- eral loanbroker. Nevertheless, in instances where a collateral loanbrok- er, without knowledge, receives stolen property as collateral from the general public, the collateral loanbroker mush return the property to the true owner and in virtually all cases is unable to recover anything from the wrongdoer. This bill will help reduce the frequency of these cases by increasing the likelihood of prosecutions and will also help the collateral loanbroker in his or her effort to secure recovery from the wrongdoer, since restitution often times can be included as a condi- tion of any early release, plea arrangement or probation. Second hand dealers face a similar threat and this bill will afford second hand dealers the same protection.

Legislative history

New bills

Fiscal implications

None

Effective date

60th day after it becomes a law