Missouri Statute | Act | Code |Business And Financial Institutions| US Code - US Statute

As used in sections 367.011 to 367.060, the following words mean:

(1) "Month", that period of time from one date in a calendar month to the
corresponding date in the following calendar month, but if there is no
such corresponding date, then the last day of such following month, and
when computations are made for a fraction of a month, a day shall be
one-thirtieth of a month;

(2) "Net assets", the book value of the current assets of a person or
pawnbroker less its applicable liabilities as stated in this subdivision.
Current assets include the investment made in cash, bank deposits,
merchandise inventory, and loans due from customers excluding the pawn
service charge. Current assets do not include the investments made in
fixed assets of real estate, furniture, fixtures, or equipment;
investments made in stocks, bonds, or other securities; or investments
made in prepaid expenses or other general intangibles. Applicable
liabilities include trade or other accounts payable; accrued sales,
income, or other taxes; accrued expenses; and notes or other payables
that are unsecured or secured in whole or part by current assets.
Applicable liabilities do not include liabilities secured by assets other
than current assets. Net assets must be represented by a capital
investment unencumbered by any liens or other encumbrances to be subject
to the claims of general creditors;

(3) "Pawnbroker", any person engaged in the business of lending money on
the security of pledged goods or engaged in the business of purchasing
tangible personal property on condition that it may be redeemed or
repurchased by the seller for a fixed price within a fixed period of time;

(4) "Pawnshop", the location at which or premises in which a pawnbroker
regularly conducts business;

(5) "Person", an individual, partnership, corporation, joint venture,
trust, association or any other legal entity however organized;

(6) "Pledged goods", tangible personal property other than choses in
action, securities, or printed evidences of indebtedness, which property
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;

(7) "Secured personal credit loan", every loan of money made in this
state, the payment of which is secured by a security interest in tangible
personal property which is physically delivered into the hands of the
lender at the time of the making of the loan and which is to be retained
by the lender while the loan is a subsisting obligation. (L. 1951 p. 281
§ 1, A.L. 1965 p. 114, A.L. 1990 H.B. 1125)

1. Subject only to constitutional police regulations, not
affecting the loan fee and the interest rate authorized by this section,
in force in any municipality or county wherein secured personal credit
loans are made, any person, natural or corporate, may make secured
personal credit loans, regardless of the nature and character of any
business in which the lender may at the time of making any such loan be
engaged, and regardless of whether the lender may at the same time be
engaged in making loans in other classifications, at the same, or at a
higher or lower loan fee and interest rate than authorized by this
section to be collected and paid to the lender on secured personal credit
loans.

2. The maximum rate of interest which may be charged for making and
carrying any secured personal credit loan shall not exceed two percent
per month on the amount of such loan. Lenders may also charge for the
storage and security of such pledged property. (L. 1951 p. 281 § 2, A.L.
1990 H.B. 1125, A.L. 1993 S.B. 18)

(1964) Borrower who was charged usurious interest was entitled to recover
the excess paid, notwithstanding pawnbroker claimed that excess was
storage charge for the article pawned, but could not recover attorney
fees. McClure v. Nowick (A.), 382 S.W.2d 731.

1. At the time of making any secured personal credit loan, the
lender shall execute and deliver to the borrower a receipt for and
describing the tangible personal property subjected to the security
interest to secure the payment of the loan. The receipt shall contain the
following:

(1) The name and address of the pawnshop;

(2) The name and address of the pledgor, the pledgor's description, and
the driver's license number, military identification number,
identification certificate number, or other official number capable of
identifying the pledgor;

(3) The date of the transaction;

(4) An identification and description of the pledged goods, including
serial numbers if reasonably available;

(5) The amount of cash advanced or credit extended to the pledgor;

(6) The amount of the pawn service charge;

(7) The total amount which must be paid to redeem the pledged goods on
the maturity date;

(8) The maturity date of the pawn transaction; and

(9) A statement to the effect that the pledgor is not obligated to redeem
the pledged goods, and that the pledged goods may be forfeited to the
pawnbroker sixty days after the specified maturity date.

2. The pawnbroker may be required, in accordance with local ordinances,
to furnish appropriate law enforcement authorities with copies of
information contained in subdivisions (1) to (4) of subsection 1 of this
section and information contained in subdivision (6) of subsection 4 of
section 367.040. The pawnbroker may satisfy such requirements by
transmitting such information electronically to a database in accordance
with this section, except that paper copies shall be made available for
an on-site inspection upon request of any appropriate law enforcement
authority.

3. As used in this section, the following terms mean:

(1) "Database", a computer database established and maintained by a third
party engaged in the business of establishing and maintaining one or more
databases;

(2) "Permitted user", persons authorized by law enforcement personnel to
access the database;

(3) "Reportable data", the information required to be recorded by
pawnbrokers for pawn transactions pursuant to subdivisions (1) to (4) of
subsection 1 of this section and the information required to be recorded
by pawnbrokers for purchase transactions pursuant to subdivision (6) of
subsection 4 of section 367.040;

(4) "Reporting pawnbroker", a pawnbroker who chooses to transmit
reportable data electronically to the database;

(5) "Search", the accessing of a single database record.

4. The database shall provide appropriate law enforcement officials with
the information contained in subdivisions (1) to (4) of subsection 1 of
this section and other useful information to facilitate the investigation
of alleged property crimes while protecting the privacy rights of
pawnbrokers and pawnshop customers with regard to their transactions.

5. The database shall contain the pawn and purchase transaction
information recorded by reporting pawnbrokers pursuant to this section
and section 367.040 and shall be updated as requested. The database shall
also contain such security features and protections as may be necessary
to ensure that the reportable data maintained in the database can only be
accessed by permitted users in accordance with the provisions of this
section.

6. The third party's charge for the database shall be based on the number
of permitted users. Law enforcement agencies shall be charged directly
for access to the database, and the charge shall be reasonable in
relation to the costs of the third party in establishing and maintaining
the database. No reporting pawnbroker or customer of a reporting
pawnbroker shall be charged any costs for the creation or utilization of
the database.

7. (1) The information in the database shall only be accessible through
the Internet to permitted users who have provided a secure identification
or access code to the database but shall allow such permitted users to
access database information from any jurisdiction transmitting such
information to that database. Such permitted users shall provide the
database with an identifier number of a criminal action for which the
identity of the pawn or purchase transaction customer is needed and a
representation that the information is connected to an inquiry or to the
investigation of a complaint or alleged crime involving goods delivered
by that customer in that transaction. The database shall record, for each
search, the identity of the permitted user, the pawn or purchase
transaction involved in the search, and the identity of any customer
accessed through the search. Each search record shall be made available
to other permitted users regardless of their jurisdiction. The database
shall enable reporting pawnbrokers to transmit to the database through
the Internet reportable data for each pawn and purchase transaction.

(2) Any person who gains access to information in the database through
fraud or false pretenses shall be guilty of a class C felony.

8. Any pawnbroker licensed under section 367.043 shall meet the following
requirements:

(1) Provide all reportable data to appropriate users by transmitting it
through the Internet to the database;

(2) Transmit all reportable data for one business day to the database
prior to the end of the following business day;

(3) Make available for on-site inspection to any appropriate law
enforcement official, upon request, paper copies of any pawn or purchase
transaction documents.

9. If a reporting pawnbroker or permitted user discovers any error in the
reportable data, notice of such error shall be given to the database,
which shall have a period of thirty days in which to correct the error.
Any reporting pawnbroker experiencing a computer malfunction preventing
the transmission of reportable data or receipt of search requests shall
be allowed a period of at least thirty but no more than sixty days to
repair such malfunction, and during such period such pawnbroker shall not
be deemed to be in violation of this section if good faith efforts are
made to correct the malfunction. During the periods specified in this
subsection, the reporting pawnbroker and permitted user shall arrange an
alternative method or methods by which the reportable data shall be made
available.

10. No reporting pawnbroker shall be obligated to incur any cost, other
than Internet service costs, in preparing, converting, or delivering its
reportable data to the database.

11. If the pawn ticket is lost, destroyed, or stolen, the pledgor may so
notify the pawnbroker in writing, and receipt of such notice shall
invalidate such pawn ticket, if the pledged goods have not previously
been redeemed. Before delivering the pledged goods or issuing a new pawn
ticket, the pawnbroker shall require the pledgor to make a written
affidavit of the loss, destruction or theft of the ticket. The pawnbroker
shall record on the written statement the identifying information
required, the date the statement is given, and the number of the pawn
ticket lost, destroyed, or stolen. The affidavit shall be signed by a
notary public appointed by the secretary of state pursuant to section
486.205, RSMo, to perform notarial acts in this state. (L. 1951 p. 281 §
3, A.L. 1965 p. 114, A.L. 1990 H.B. 1125, A.L. 2002 H.B. 1888, A.L. 2005
H.B. 353)

1. Every secured personal credit loan shall be due and payable
in lump sum thirty days after the date of the loan contract, or, if
extended, thirty days after the date of the last preceding extension of
the loan, and if not so paid when due, it shall, on the next day
following, be in default. The lender shall retain possession of the
tangible personal property subjected to the security interest to secure
payment of any secured personal credit loan for a period of sixty days
next following the date of default. If, during the period of sixty days,
the borrower shall pay to the lender the principal sum of the loan, with
the loan fee or fees, and the interest due thereon to the date of
payment, the lender shall thereupon deliver possession of the tangible
personal property to the borrower. But if the borrower fails, during the
period of sixty days, to make payment, then title to the tangible
personal property shall, on the day following the expiration of the
period of sixty days, pass to the lender, without foreclosure, and the
right of redemption by the borrower shall be forever barred.

2. A pledgor shall have no obligation to redeem pledged goods or make any
payment on a pawn transaction.

3. Except as otherwise provided by sections 367.011 to 367.060, any
person properly identifying himself and presenting a pawn ticket to the
pawnbroker shall be presumed to be entitled to redeem the pledged goods
described therein.

4. A pawnbroker shall not:

(1) Accept a pledge from a person who is under eighteen years of age;

(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 sections 367.011 to 367.060;

(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 as a result of pawnbroker negligence
while in the possession of the pawnbroker it shall be the responsibility
of the pawnbroker to replace the lost or damaged goods with like kind of
merchandise. Lenders shall not be responsible for loss of pledged
articles due to acts of God, acts of war, or riots. Each lender shall
employ, if reasonably available in his area, a reputable company for the
purpose of fire and theft security;

(6) Purchase or take in trade used or secondhand personal property unless
a record is established that contains:

(a) The name, address, physical description, and the driver's license
number, military identification number, identification certificate
number, or other official number capable of identifying the seller;

(b) A complete description of the property, including the serial number
if reasonably available, or other identifying characteristic; and

(c) A signed document from the seller providing that the seller has the
right to sell the property. (L. 1951 p. 281 § 4, A.L. 1965 p. 114, A.L.
1990 H.B. 1125)

1. No person shall operate a pawnshop unless such person obtains
a municipal pawnshop license issued pursuant to this section. Each
municipality or county may issue a pawnshop license to any person who
meets the qualifications of this section. To be eligible for a pawnshop
license, an applicant shall:

(1) Be of good moral character;

(2) Have net assets of at least fifty thousand dollars readily available
for use in conducting business as a pawnshop for each licensed pawnshop;
and

(3) Show that the pawnshop will be operated lawfully and fairly within
the purposes of sections 367.011 to 367.060. In addition to the
qualifications specified in subdivisions (1) to (3) of this subsection, a
municipality or county may also refuse to issue a pawnshop license to any
applicant who has a felony or misdemeanor conviction which directly
relates to the duties and responsibilities of the occupation of
pawnbroker or otherwise makes the applicant presently unfit for a
pawnshop license.

2. If the municipality or county is unable to verify that the applicant
meets the net assets requirement for a licensed pawnshop, the
municipality or county may require a finding, including the presentation
of a current balance sheet, by an independent certified public accountant
that the accountant has reviewed the books and records of the applicant
and that the applicant meets the net assets requirement of this section.

3. An application for a new pawnshop license, the transfer of an existing
pawnshop license or the approval of a change in the ownership of a
licensed pawnshop shall be under oath and shall state the full name and
place of residence of the applicant, the place where the business is to
be conducted, and other relevant information required by the municipality
or county. If the applicant is a partnership, the municipality or county
may require that the application state the full name and address of each
member. If the applicant is a corporation, the application shall state
the full name and address of each officer, shareholder, and director. The
application shall be accompanied by:

(1) An investigation fee of five hundred dollars if the applicant is
unlicensed at the time of applying for the pawnshop license or two
hundred fifty dollars if the application involves a second or additional
license to an applicant previously licensed for a separate location or
involves substantially identical principals and owners of a licensed
pawnshop at a separate location; and

(2) Proof of general liability if required by the municipality or county,
and an annual fee of five hundred dollars.

4. Each applicant for a pawnshop license at the time of filing
application shall file with the municipality or county, if the
municipality or county so requires, a bond satisfactory to him and in an
amount not to exceed five thousand dollars for each license with a surety
company qualified to do business in this state. The aggregate liability
of such surety shall not exceed the amount stated in the bond. The bond
shall run to the state for the use of the state and of any person or
persons who may have a cause of action against the obligor of such bond
under the provisions of sections 367.011 to 367.060. Such bond shall be
conditioned that the obligor will comply with the provisions of sections
367.011 to 367.060 and of all rules and regulations lawfully made by the
municipality or county, and will pay to the state and to any such person
or persons any and all amounts of money that may become due or owing to
the state or to such person or persons from such obligor under and by
virtue of the provisions of sections 367.011 to 367.060 during the time
such bond is in effect.

5. Each licensee shall keep, consistent with accepted accounting
practices, adequate books and records relating to the licensee's pawn
transactions, which books and records shall be preserved for a period of
at least two years from the date of the last transaction recorded therein.

6. No person who is lawfully operating a pawnshop on August 28, 1990,
shall be required to obtain a license under this section in order to
continue operating such pawnshop, so long as such person does not violate
any other provision of sections 367.011 to 367.060, except that, if such
person is required by the municipality or county to have an occupational
license, such person shall be required to pay the five-hundred-dollar
annual fee prescribed in subdivision (2) of subsection 3 of this section
in lieu of any municipal or county occupational license fee.

7. In addition to the other requirements of this section for licensure,
no license shall be issued under this section on or after May 20, 1994,
for the initial operation of a pawnshop if such pawnshop is to be located
within one-half mile of a site where an excursion gambling boat dock or
facility is located or within one-half mile of a site where an
application for such an excursion gambling boat dock or facility is on
file with the gaming commission prior to the date the application for the
pawnshop license is filed. The provisions of this subsection shall not
prohibit a pawnshop from being located within one-half mile of a dock or
facility or proposed dock or facility described in this subsection if the
license for such pawnshop has been issued prior to May 20, 1994. (L. 1990
H.B. 1125, A.L. 1993 S.B. 18, A.L. 1994 S.B. 740)

Effective 5-20-94

1. As used in sections 367.044 to 367.055, the following terms
mean:

(1) "Claimant", a person who claims that property in the possession of a
pawnbroker is misappropriated from the claimant and fraudulently pledged
or sold to the pawnbroker;

(2) "Conveying customer", a person who delivers property into the
possession of a pawnbroker, either through a pawn transaction, a sale or
trade, which property is later claimed to be misappropriated;

(3) "Hold order", a written legal instrument issued to a pawnbroker by a
law enforcement officer commissioned by the law enforcement agency of the
municipality or county that licenses and regulates the pawnbroker,
ordering the pawnbroker to retain physical possession of pledged goods in
the possession of a pawnbroker or property purchased by and in the
possession of a pawnbroker and not to return, sell or otherwise dispose
of such property as such property is believed to be misappropriated goods;

(4) "Law enforcement officer", the sheriff or sheriff's deputy designated
by the sheriff of the county in which the pawnbroker's pawnshop is
located, or when the pawnbroker's pawnshop is located within a
municipality, the police chief or police officer designated by the police
chief of the municipality in which the pawnbroker's pawnshop is located;

(5) "Misappropriated", stolen, embezzled, converted, or otherwise
wrongfully appropriated or pledged against the will of the rightful owner
or party holding a perfected security interest;

(6) "Pledgor", a person who pledges property to the pawnbroker;

(7) "Purchaser", a person who purchases property from a pawnbroker; and

(8) "Seller", a person who sells property to a pawnbroker.

2. A pawnbroker shall have no recourse against the pledgor for payment on
a pawn transaction except the pledged goods themselves, unless the goods
are found to have been misappropriated.

3. A pawnbroker shall require of every person from whom the pawnbroker
receives sold or pledged property proof of identification which includes
a current address and, if applicable, telephone number, and a current
picture identification issued by state or federal government.

4. If any seller fails to provide a pawnbroker with proof of
identification, the pawnbroker shall hold such property for a period of
thirty days prior to selling or otherwise transferring such property,
provided, the seller has submitted a signed statement that the seller is
the legal owner of the property and stating when or from whom such
property was acquired by the seller.

5. To obtain possession of tangible personal property held by a
pawnbroker which a claimant claims to be misappropriated, the claimant
shall provide the pawnbroker with a written demand for the return of such
property, a copy of a police or sheriff's report wherein claimant
reported the misappropriation or theft of said property and which
contains a particularized description of the property or applicable
serial number, and a signed affidavit made under oath setting forth they
are the true owner of the property, the name and address of the claimant,
a description of the property being claimed, the fact that such property
was taken from the claimant without the claimant's consent, permission or
knowledge, the fact that the claimant has reported the theft to the
police, the fact that the claimant will assist in any prosecution
relating to such property, the promise that the claimant will respond to
court process in any criminal prosecution relating to said property and
will testify truthfully as to all facts within the claimant's knowledge
and not claim any testimonial privilege with respect to said facts. These
documents shall be presented to the pawnbroker concurrently.

6. Upon being served with a proper demand by a claimant for the return of
property pursuant to subsection 5 of this section, the pawnbroker shall
return the property to the claimant, in the presence of a law enforcement
officer, within seven days unless the pawnbroker has good reason to
believe that any of the matters set forth in the claimant's affidavit are
false or if there is a hold order on the property pursuant to section
367.055. If a pawnbroker refuses to deliver property to a claimant upon a
proper demand as described in subsection 5 of this section, the claimant
may file a petition in a court of competent jurisdiction seeking the
return of said property. The nonprevailing party shall be responsible for
the costs of said action and the attorney fees of the prevailing party.
The provisions of section 482.305, RSMo, to the contrary notwithstanding,
a court of competent jurisdiction shall include a small claims court,
even if the value of the property named in the petition is greater than
three thousand dollars.

7. If a pawnbroker returns property to a claimant relying on the veracity
of the affidavit described in subsection 5 of this section, and later
learns that the information contained in said affidavit is false or that
the claimant has failed to assist in prosecution or otherwise testify
truthfully with respect to the facts within the claimant's knowledge, the
pawnbroker shall have a cause of action against the claimant for the
value of the property. The nonprevailing party shall be responsible for
the cost of said action and the attorney fees of the prevailing party.

8. Nothing contained in this section shall limit a pawnbroker from
bringing the conveying customer into a suit as a third party, nor limit a
pawnbroker from recovering from a conveying customer repayment of the
full amount received from the pawnbroker from the pawn or sales
transaction, including all applicable fees and interest charged,
attorney's fees and the cost of the action. (L. 1993 S.B. 18, A.L. 1998
H.B. 1526 § 367.044 subsecs. 1 to 5, A.L. 2002 H.B. 1888)

1. When the tangible personal property subject to the pawn or
sales transaction has been delivered or awarded to a claimant pursuant to
section 367.044, and within ten business days after a written demand for
payment and notice is deposited by the pawnbroker as certified or
registered mail in the United States mail and addressed to the conveying
customer, the conveying customer fails to repay the pawnbroker the full
amount incurred by the pawnbroker in connection with such property and
the procedure described in section 367.044, the conveying customer shall
have committed the crime of fraudulently pledging or selling
misappropriated property.

2. Fraudulently pledging or selling property is a class B misdemeanor if
the amount received by the conveying customer from the pawnbroker was
less than fifty dollars. Fraudulently pledging or selling property is a
class A misdemeanor if the amount received by the conveying customer from
the pawnbroker was more than fifty dollars and less than one hundred
fifty dollars. Fraudulently pledging or selling property is a class C
felony if the amount received by the conveying customer from the
pawnbroker was one hundred fifty dollars or more. (L. 1993 S.B. 18, A.L.
1998 H.B. 1526)

1. To obtain from a pawnbroker the amount of purchase for
tangible personal property which a purchaser claims was misappropriated
prior to the purchase, the purchaser shall file a petition in a court of
competent jurisdiction in the county where the pawnbroker's pawnshop is
located, requesting the return of the purchase amount, naming the
pawnbroker as a defendant and serving the pawnbroker with the petition.
The provisions of section 482.305, RSMo, to the contrary notwithstanding,
a court of competent jurisdiction shall include a small claims court,
even if the purchase amount named in the petition is greater than three
thousand dollars. Upon receiving notice that a petition has been filed by
a purchaser for the amount of purchase, the purchaser shall hold the
purchased property until the right to possession is resolved by the
parties or by a court of competent jurisdiction, unless such property is
subject to a hold order for law enforcement purposes and a law
enforcement officer has provided written acknowledgment that the property
has been released to the officer.

2. Upon being served notice that a petition has been filed pursuant to
this section, the pawnbroker may return the amount of purchase to the
purchaser prior to a decision being rendered on the purchaser's petition
by the court. The pawnbroker shall return the amount of purchase to the
purchaser conditioned only upon the purchaser withdrawing the petition
filed with a court of competent jurisdiction seeking the disposition of
such property. The provisions of this section to the contrary
notwithstanding, the pawnbroker shall not be required to pay any costs
incurred by the purchaser and the purchaser shall not be required to pay
any costs incurred by the pawnbroker when the amount of purchase is
returned to the purchaser pursuant to this subsection.

3. When a purchaser files a petition pursuant to this section, the
pawnbroker may bring the conveying customer of the alleged
misappropriated property into the action as a third-party defendant. If
after notice to the pawnbroker and an opportunity to add the conveying
customer as a defendant, the purchased property is found by a court to
have been misappropriated and purchased by the purchaser in good faith,
then:

(1) The prevailing purchaser may recover from the pawnbroker the cost of
the action, including attorney's fees;

(2) The conveying customer shall be liable to repay the pawnbroker the
full amount received from the pawn or sales transaction, including all
applicable fees and interest charged and the costs incurred by the
pawnbroker in pursuing the procedure described in this section, including
attorney's fees. (L. 1998 H.B. 1526)

*No continuity with § 367.046 as repealed by L. 1994 S.B. 740 § A.

1. Upon written notice from a law enforcement officer indicating
that property in the possession of a pawnbroker and subject to a hold
order is needed for the purpose of furthering a criminal investigation
and prosecution, the pawnbroker shall release the property subject to the
hold order to the custody of the law enforcement officer for such purpose
and the officer shall provide a written acknowledgment that the property
has been released to the officer. The release of the property to the
custody of the law enforcement officer shall not be considered a waiver
or release of the pawnbroker's property rights or interest in the
property. Upon completion of the criminal investigation, the property
shall be returned to the pawnbroker who consented to its release; except
that if the law enforcement officer has not completed the criminal
investigation within one hundred twenty days after its release, the
officer shall immediately return the property to the pawnbroker or obtain
and furnish to the pawnbroker a warrant for the continued custody of the
property.

2. Except as provided in subsection 1 of this section, the pawnbroker
shall not release or dispose of the property except pursuant to a court
order or the expiration of the holding period of the hold order,
including all extensions. (L. 1993 S.B. 18, A.L. 1998 H.B. 1526)

1. The prosecuting attorney or the circuit attorney shall notify
the pawnbroker in writing in cases where criminal charges have been filed
and the property may be needed as evidence. The notice shall contain the
case number, the style of the case and a description of the property.

2. The pawnbroker shall hold such property until receiving notice of the
disposition of the case from the prosecuting attorney or the circuit
attorney. The prosecuting attorney or the circuit attorney shall notify
the pawnbroker and claimant in writing within fifteen days of the
disposition of the case. (L. 1993 S.B. 18, A.L. 1998 H.B. 1526)

A licensed pawnbroker, or agent or employee of the licensed
pawnbroker, who acts, pursuant to the provisions of sections 367.011 to
367.060, in good faith, exercises due care and follows the provisions of
the law, shall not be subject to criminal or civil liability for any such
act. (L. 1993 S.B. 18)

1. In addition to any other penalty which may be applicable, any
person who operates a pawnshop pursuant to the provisions of sections
367.011 to 367.060, or is required to be licensed pursuant to section
367.043 who willfully violates any provision of sections 367.011 to
367.060 or who willfully makes a false entry in any records specifically
required by sections 367.011 to 367.060 shall be guilty of a misdemeanor
and upon conviction thereof shall be punishable by a fine not in excess
of five thousand dollars, or by confinement in the county jail for not
more than six months, or by both such fine and imprisonment. Upon the
second conviction of the offense described in this section, in addition
to being punishable by fine or imprisonment, the person's pawnshop
license shall be permanently revoked; except that there shall be no
penalty for a violation resulting from an accidental and bona fide error,
where such error is corrected upon discovery.

2. Except as provided in subsection 6 of section 367.043, any person who
engages in the business of operating a pawnshop without first securing a
license shall be guilty of a misdemeanor and upon conviction thereof
shall be punishable by a fine not in excess of ten thousand dollars or by
confinement in the county jail for not more than one year, or by both
such fine and imprisonment. Any person who violates the provisions of
this subsection shall be permanently prohibited from securing or holding
a valid pawnshop license. (L. 1951 p. 281 § 5, A.L. 1955 p. 241, A.L.
1990 H.B. 1125, A.L. 1998 H.B. 1526)

The sale or pledge of tangible personal property by any person
shall be deemed:

(1) An agreement by the person who sells or pledges that the person shall
be subject to the jurisdiction of the courts of this state in all civil
actions and proceedings, arising out of the pledge or sale transaction,
filed either by a resident or nonresident plaintiff;

(2) An appointment by any nonresident of the secretary of state as the
person's lawful attorney and agent upon whom may be served all process in
suits pertaining to the actions and proceedings arising out of the pledge
or sale; and

(3) An agreement by any nonresident that any process in any suit so
served shall be of the same legal force and validity as if personally
served in this state. (L. 1998 H.B. 1526 § 367.044 subsec. 6)

When an item of property is the subject of a lease, rental
transaction or retail installment contract with a company domiciled in
the state, between the claimant and the claimant's lease or rental
customer at the time it is delivered into the possession of the
pawnbroker, the property shall not be deemed misappropriated unless it
bears a conspicuous permanent label or marking identifying it as the
claimant's property. Evidence of defacing or the removal of
identification marking of leased or rented property shall be treated as
marked and identified and therefore deemed to be misappropriated.
Property subject to a lease, rental transaction or retail installment
contract with a company domiciled in the state, which is not marked as
provided in this subsection may be recovered by the claimant upon payment
to the pawnbroker of all moneys owing to or advanced by the pawnbroker in
the pawn or purchase transaction, and upon producing evidence identifying
the property as having been the property of the claimant and leased or
rented at the time the property was placed in the pawnbroker's
possession. The pawnbroker shall be free from liability in connection
with the recovery of leased or rental property pursuant to this
subsection. (L. 1998 H.B. 1526 § 367.044 subsec. 7)

Any title, license or permit for pledged goods shall remain in
effect during the period of the pawn transaction and shall remain valid
if such pledged goods are redeemed by the pledgor, and shall be voided if
the pledged goods are redeemed by someone other than the pledgor or when
ownership of the pledged goods passes to the pawnbroker, who shall
retitle, relicense or repermit such goods as otherwise provided by law.
(L. 1998 H.B. 1526 § 367.044 subsec. 8)

1. Upon request of a law enforcement officer to inspect property
that is described in information furnished by the pawnbroker pursuant to
subdivisions (1) to (4) of subsection 1 of section 367.031, the law
enforcement officer shall be entitled to inspect the property described,
without prior notice or the necessity of obtaining a search warrant
during regular business hours in a manner so as to minimize interference
with or delay to the pawnbroker's business operation. When a law
enforcement officer has probable cause to believe that goods or property
in the possession of a pawnbroker are misappropriated, the officer may
place a hold order on the property. The hold order shall contain the
following:

(1) The name of the pawnbroker;

(2) The name and mailing address of the pawnshop where the property is
held;

(3) The name, title and identification number of the law enforcement
officer placing the hold order;

(4) The name and address of the agency to which the law enforcement
officer is attached and the claim or case number, if any, assigned by the
agency to the claim regarding the property;

(5) A complete description of the property to be held including model and
serial numbers;

(6) The expiration date of the holding period.

The hold order shall be signed and dated by the issuing officer and
signed and dated by the pawnbroker or the pawnbroker's designee as
evidence of the hold order's issuance by the officer, receipt by the
pawnbroker and the beginning of the initial holding period. The officer
issuing the hold order shall provide an executed copy of the hold order
to the pawnbroker for the pawnbroker's record-keeping purposes at no cost
to the pawnbroker.

2. Upon receiving the hold order, and subject to the provisions of
section 367.047, the pawnbroker shall retain physical possession of the
property subject to the order in a secured area. The initial holding
period of the hold order shall not exceed two months, except that the
hold order may be extended for up to two successive one-month holding
periods upon written notification prior to the expiration of the
immediately preceding holding period. A hold order may be released prior
to the expiration of any holding period or extension thereof by written
release from the agency placing the initial hold order. The initial hold
order shall be deemed expired upon the expiration date if the holding
period is not extended pursuant to this subsection.

3. Upon the expiration of the initial holding period or any extension
thereof, the pawnbroker shall deliver written notice to the law
enforcement officer issuing the hold order that such order has expired
and that title to the property subject to the hold order will vest in the
pawnbroker in ten business days. Ownership shall only vest in the
pawnbroker upon the expiration of the ten-day waiting period subject to
any restriction contained in the pawn contract and subject to the
provisions of sections 367.044 to 367.053. Vesting of title and ownership
shall be subject to any claim asserted by a claimant pursuant to section
367.044.

4. In addition to the penalty provisions contained in section 367.050,
gross negligence or willful noncompliance with the provisions of this
section by a pawnbroker shall be cause for the licensing authority to
suspend or revoke the pawnbroker's license. Any imposed suspensions or
revocation provided for by this subsection may be appealed by the
pawnbroker to the licensing authority or to a court of competent
jurisdiction.

5. A county or municipality may enact orders or ordinances to license or
regulate the operations of pawnbrokers which are consistent with and not
more restrictive than the provisions of sections 367.011 to 367.055,
except that municipalities located in any county with a charter form of
government having a population greater than one million inhabitants or
any city not within a county may regulate the number of pawnshop
licensees.

6. All records and information that relate to a pawnbroker's pawn,
purchase or trade transactions and that are delivered to or otherwise
obtained by an appropriate law enforcement officer pursuant to sections
367.031 and 367.040 are confidential and may be used only by such
appropriate law enforcement officer and only for the following official
law enforcement purposes:

(1) The investigation of a crime specifically involving the item of
property delivered to the pawnbroker in a pawn, purchase or trade
transaction;

(2) The investigation of a pawnbroker's possible specific violation of
the record-keeping or reporting requirements of sections 367.031 and
367.040, but only when the appropriate law enforcement officer, based on
a review of the records and the information received, has probable cause
to believe that such a violation occurred; and

(3) The notification of property crime victims of where property that has
been reported misappropriated can be located. (L. 1998 H.B. 1526 §
367.051, A.L. 2002 H.B. 1888)

Nothing in sections 367.011 to 367.060 contained shall be deemed
to amend or repeal any of the provisions of sections 367.100 to 367.200
and 408.100 to 408.220, RSMo. (L. 1951 p. 281 § 7)

As used in sections 367.100 to 367.200:

(1) "Consumer credit loans" shall mean:

(a) Prior to January 1, 2002, loans for the benefit of or use by an
individual or individuals:

a. Secured by a security agreement or any other lien on tangible personal
property or by the assignment of wages, salary or other compensation; or

b. Unsecured and whether with or without comakers, guarantors, endorsers
or sureties;

(b) Beginning January 1, 2002, and thereafter, loans for personal, family
or household purposes in amounts of five hundred dollars or more;

(2) "Director" shall mean the director of the division of finance or such
agency or agencies as may exercise the powers and duties now performed by
such director;

(3) "Lender" shall mean any person engaged in the business of making
consumer credit loans. A person who makes an occasional consumer credit
loan or who occasionally makes loans but is not regularly engaged in the
business of making consumer credit loans shall not be considered a lender
subject to sections 367.100 to 367.200;

(4) "Person" shall include individuals, partnerships, associations,
trusts, corporations, and any other legal entities, excepting those
corporations whose powers emanate from the laws of the United States and
those which under other law are subject to the supervisory jurisdiction
of the director or the director of the division of credit unions of
Missouri;

(5) "Supervised business" shall mean the business of making consumer
credit loans, as herein defined, of money, credit, goods, or things in
action. (L. 1951 p. 262 § 1, A.L. 1965 p. 114, A.L. 1977 H.B. 48, A.L.
1978 S.B. 745, A.L. 1994 H.B. 1165, A.L. 2001 H.B. 738, A.L. 2001 S.B.
186)

CROSS REFERENCE: Interest rate on small loans, RSMo 408.100 to 408.210

No lender shall engage in the business of making consumer credit
loans as herein defined in this state of money, credit, goods or things
in action without first having obtained a certificate of registration
from the director as provided in sections 367.100 to 367.200. (L. 1951 p.
262 § 2)

Application for a certificate of registration shall be in
writing in the form prescribed by the director. No certificate of
registration is required until thirty days after sections 367.100 to
367.200 become effective, during which period such application may be
made. (L. 1951 p. 262 § 3)

The director may require the lender to file with the director a
bond in the principal amount of one thousand dollars at the time of
filing the application for a certificate of registration hereunder, or at
such later time as the director deems necessary for the purposes of
sections 367.100 to 367.200. The lender shall be the obligor, and the
surety shall be approved by the director. The bond shall run to the state
of Missouri for the use of the state or any person or persons who may
have a cause of action against the lender-obligor arising out of the
supervised business. The condition of the bond shall be that the
lender-obligor will conform to and abide by the provisions of sections
367.100 to 367.200 and the laws of the state of Missouri relating to
consumer credit loans, and the assignment or sale of wages, salaries, or
other compensation, and will pay to the state and to any person any and
all moneys that may become due under sections 367.100 to 367.200 or under
any transaction which is a part of the supervised business. If in the
opinion of the director the bond shall at any time appear to be insecure
or exhausted or otherwise doubtful an additional bond in the principal
sum of not more than one thousand dollars in form and with surety
satisfactory to the director, shall be filed within fifteen days after
notice of the requirement thereof be given to the lender by the director.
(L. 1951 p. 262 § 4)

1. Every lender shall, at the time of filing application for
certificate of registration as provided in section 367.120 hereof, pay
the sum of three hundred dollars as an annual registration fee for the
period ending the thirtieth day of June next following the date of
payment and in full payment of all expenses for investigations,
examinations and for the administration of sections 367.100 to 367.200,
except as provided in section 367.160, and thereafter a like fee shall be
paid on or before June thirtieth of each year; provided, that if a lender
is supervised by the commissioner of finance under any other law, the
charges for examination and supervision required to be paid under said
law shall be in lieu of the annual fee for registration and examination
required under this section. The fee shall be made payable to the
director of revenue. If the initial registration fee for any certificate
of registration is for a period of less than twelve months, the
registration fee shall be prorated according to the number of months that
said period shall run. The director may establish a biennial licensing
arrangement but in no case shall the fees be payable for more than one
year at a time.

2. Upon receipt of such fee and application for registration, and
provided the bond, if required by the director, has been filed, the
director shall issue to the lender a certificate containing the lender's
name and address and reciting that such lender is duly and properly
registered to conduct the supervised business. The lender shall keep this
certificate of registration posted in a conspicuous place at the place of
business recited in the registration certificate. Where the lender
engages in the supervised business at or from more than one office or
place of business, such lender shall obtain a separate certificate of
registration for each such office or place of business.

3. Certificates of registration shall not be assignable or transferable
except that the lender named in any such certificate may obtain a change
of address of the place of business therein set forth. Each certificate
of registration shall remain in full force and effect until surrendered,
revoked, or suspended as herein provided. (L. 1951 p. 262 § 5, A.L. 1986
H.B. 1195, A.L. 2003 S.B. 346)

Every lender shall, on or before April thirtieth of each year,
and upon a form prescribed by the director, file with the director a
written report under oath containing the following information pertaining
to the supervised business conducted by the lender during the preceding
calendar year:

(1) The name of the lender, and the address of each office in the state
of Missouri, and the principal office if it is outside the state of
Missouri;

(2) The names and addresses of all officers and directors of the lender,
and where a partnership the names and addresses of all partners, giving
their respective interests;

(3) A balance sheet showing the financial condition of the lender as of
the end of the lender's previous fiscal year, including a statement of
the total assets used and useful in conducting the business, both
tangible and intangible. Where any item of assets or liabilities is
involved both in the consumer loan business and in additional loan or
other business of the lender, the latter shall indicate on the balance
sheet the proportion of each item properly attributable to the consumer
loan business in accordance with formulae and regulations prescribed by
the director. In the event the lender is a corporation, in addition to
the statement of assets and liabilities normally included in balance
sheets, a detailed statement of the lender's capitalization shall be
given, including:

(a) Total of each class of securities authorized and outstanding;

(b) Capital or paid-in surplus;

(c) Earned surplus at beginning of period;

(d) Dividends paid during period;

(e) Earned surplus at end of period;

(4) A profit and loss statement covering operations of the supervised
business during the previous fiscal year, including a statement of gross
earnings, a detailed statement of expenses and the amount paid or
reserved for federal, state and other taxes. Where any item of income or
expenses arises in connection with both the consumer loan business and
some additional loan or other business of the lender the latter shall
indicate on the profit and loss statement the proportion of each item
properly attributable to the consumer loan business, in accordance with
formulae and regulations prescribed by the director;

(5) The total aggregate number and principal amount of loans made by the
lender in the following categories:

(a) $ 1 $ 100

(b) $ 100 $ 200

(c) $ 200 $ 400

(d) $ 400 $ 600

(e) $ 600 $ 1000

(f) $ 1000 or higher;

(6) The number of garnishments, attachments and other suits filed and
judgments obtained;

(7) The number of security agreements foreclosed and the amount received
from such sales and from the resale;

(8) Any other additional and relevant information relating to loans that
the director may from time to time prescribe by regulation. (L. 1951 p.
262 § 6, A.L. 1965 p. 114)

The director, his deputies and examiners shall have full power
and authority at any time and as often as reasonably necessary to
investigate or examine the supervised business, affairs and loans made in
the supervised business of any registered lender and of every person,
firm, partnership and corporation making loans who the director has
reasonable grounds to believe is subject to and violating the provisions
of sections 367.100 to 367.200, for the purpose of ascertaining whether
or not the lender, or such person, firm, partnership or corporation is
complying with the provisions of sections 367.100 to 367.200 and the laws
of Missouri relating to consumer credit loans or assignment or sale of
wages or salary or other compensation. In connection with any such
investigation or examination the director and his representatives shall
have free and immediate access to the lender's place or places of
business and his or its books and records and shall have the right and
power to examine under oath all persons whomsoever whose testimony may be
required relative to the affairs and business of the particular lender.
Whenever it is necessary to examine the business and loans of a
registered lender more than once a year or of any other lender at any
time, then the lender shall be chargeable with and be required to pay the
necessary cost and expenses thereof, including the actual travel expenses
and a per diem of one hundred dollars for each examining official while
engaged in travel to and from the place of such examination and during
the period required for such examination. Whenever any lender is subject
to examination by or required to make reports to municipal officers under
city ordinances regulating the supervised business, such examinations or
reports shall be in lieu of the examinations and reports required by the
provisions of sections 367.100 to 367.200. (L. 1951 p. 262 § 7, A.L. 1986
H.B. 1195)

Effective 5-15-86

The director is authorized and empowered to make such general
regulations as may be necessary for the enforcement of sections 367.100
to 367.200 and shall issue regulations providing and governing the types
and limits of insurance and the issuance of policies which may be sold in
connection with consumer credit loans. The cost of any insurance shall
not exceed the standard rates and the insurance shall be obtained from an
insurance company duly authorized to conduct business in this state and
the registrant, or any of its employees, may be licensed as an insurance
agent. Insurance premiums shall not be considered as interest, service
charges or fees in connection with any loan. Each such regulation shall
be consistent with sections 367.100 to 367.200 and shall be referenced to
the specific provision of sections 367.100 to 367.200 which is to be
enforced by it. Nothing in this section shall alter or amend the statutes
of this state relating to insurance or affect the powers of the director
of insurance under statutes relating to credit life insurance and credit
accident and health insurance. (L. 1951 p. 262 § 8, A.L. 1984 S.B. 686 §
367.170 subsec. 1)

Every lender shall keep books and records of the supervised
business. (L. 1951 p. 262 § 9)

1. Every nondepository financial institution licensed under
sections 367.100 to 367.215 and otherwise defined as a person in section
367.100 shall comply with the provisions of this section.

2. In addition to any disclosures otherwise provided by law, such person
soliciting loans using facsimile or negotiable checks shall disclose the
following:

"THIS IS A SOLICITATION FOR A LOAN. READ THE ENCLOSED DISCLOSURES BEFORE
SIGNING THIS AGREEMENT." This notice shall be printed in not less than
ten-point bold type and shall appear directly on the face of the check.

3. When such persons make loans secured by real estate as otherwise
provided by law, such persons shall include in a printed portion of the
contract the following notice:

"WARNING TO BORROWER: DEFAULT IN THE PAYMENT OF THIS LOAN AGREEMENT MAY
RESULT IN THE LOSS OF THE PROPERTY SECURING THE LOAN. UNDER FEDERAL LAW
YOU MAY HAVE THE RIGHT TO CANCEL THIS AGREEMENT. IF YOU HAVE THIS RIGHT,
THE CREDITOR IS REQUIRED TO PROVIDE YOU WITH A SEPARATE WRITTEN NOTICE
SPECIFYING THE CIRCUMSTANCES AND TIMES UNDER WHICH YOU CAN EXERCISE THIS
RIGHT." This notice shall be printed in not less than ten-point bold type.

4. When making or negotiating loans, such person shall take into
consideration in determining the size and duration of a loan contract the
financial ability of borrowers to reasonably repay the loan in the time
and manner as specified in the loan contract.

5. Such person shall post in a conspicuous location in each licensed
office the maximum rates and fees that such person is currently charging
on any loans made. (L. 1998 S.B. 792)

In the event any lender fails, refuses, or neglects to comply
with the provisions of sections 367.100 to 367.200, or of any laws of the
state of Missouri relating to consumer credit loans or assignment or sale
of wages, or salaries or other compensation, his or its certificate of
registration for the place of business at which the violation occurred,
may be suspended or revoked by order of the director after a hearing
before said director on any order to show cause why such order of
suspension or revocation should not be entered specifying the grounds
therefor which shall be served on the particular lender at least ten days
prior to the hearing. Such action shall not affect any rights or charter
powers which any state bank, state trust company or national banking
association has by virtue of any other law. Review may be had of any such
order made and entered by the director in the manner provided by law. (L.
1951 p. 262 § 10)

If any person, firm, partnership or corporation to whom or which
sections 367.100 to 367.200 apply, or any officer, agent or
representative of such person, firm, partnership or corporation violates
any of the provisions of said sections or shall attempt to transact any
supervised business whatsoever in the name or on behalf of such person,
firm, partnership or corporation, while he or it fails or refuses to
comply with provisions of sections 367.100 to 367.200, each such person,
firm, partnership, or corporation, agent, officer, or representative
shall be deemed guilty of a misdemeanor. (L. 1951 p. 262 § 11)

All persons and entities licensed under the provisions of
sections 367.100 to 367.200 shall cause an audit to be made once each
year by a certified public accountant firm, of which at least one partner
is the holder of a Missouri certified public accountant license. In the
event that entities licensed under the provisions of sections 367.100 to
367.200 are affiliated with entities which engage in other than such
licensed activities in this state or elsewhere, an audit of the financial
statements which consolidate the financial statements of the licensee,
made according to generally accepted auditing standards, will be
sufficient for the purpose of sections 367.205 to 367.215. (L. 1972 S.B.
405 § 1)

A copy of the report of the audit required by section 367.205
shall be delivered to the director of finance of the state of Missouri at
least thirty days prior to the license renewal date. (L. 1972 S.B. 405 §
2)

The director of finance shall not issue a renewal license to any
person or entity licensed under the provisions of sections 367.100 to
367.200 unless the audit report is furnished as required by section
367.210. In lieu of the requirements of sections 367.205 to 367.215, the
licensee may post a surety bond in the amount of one hundred thousand
dollars. The bond shall be in a form satisfactory to the director and
shall be issued by a bonding or insurance company authorized to do
business in the state to secure compliance with all laws relative to
consumer credit. If, in the opinion of the director, the bond shall at
any time appear to be inadequate, insecure, exhausted, or otherwise
doubtful, additional bond in a form and with surety satisfactory to the
director shall be filed within fifteen days after the director gives
notice to the licensee. A licensee may, in lieu of filing any bond
required under this section, provide the director with a one hundred
thousand dollar irrevocable letter of credit, as defined in section
400.5-103, RSMo, issued by any bank, trust company, savings and loan or
credit union operating in Missouri. (L. 1972 S.B. 405 § 3, A.L. 2001 H.B.
738 merged with S.B. 186)

As used in sections 367.300 to 367.310, unless the context
otherwise requires, the following terms shall mean:

(1) "Advance fee", any consideration which is assessed or collected prior
to the closing by a loan broker;

(2) "Borrower", a person obtaining or desiring to obtain a loan of money,
a credit card, or a line of credit;

(3) "Loan", an agreement to advance money or property in return for the
promise to make payments therefor;

(4) "Loan broker", any person; except any bank, savings and loan
association, trust company, building and loan association, credit union,
retail installment sales company, securities broker-dealer, real estate
broker or salesperson, attorney, federal housing administration or
veterans' administration approved lender, credit card company,
installment loan licensee, mortgage banker or lender, or insurance
company, provided that the person excepted is licensed by or subject to
regulation or supervision of any agency of the United States or this
state and, if licensed, is acting within the scope of the license; and
also excepting subsidiaries of licensed or chartered banks or savings and
loan associations; who:

(a) For or in expectation of consideration arranges or attempts to
arrange or offers to fund a loan of money, a credit card, or a line of
credit;

(b) For or in expectation of consideration assists or advises a borrower
in obtaining or attempting to obtain a loan of money, a credit card, a
line of credit, or related guarantee, enhancement, or collateral of any
kind or nature;

(c) Acts for or on behalf of a loan broker for the purpose of soliciting
borrowers; or

(d) Holds himself out as a loan broker;

(5) "Principal", any officer, director, partner, joint venturer, branch
manager, or other person with similar managerial or supervisory
responsibilities for a loan broker. (L. 1992 S.B. 705)

1. No loan broker shall charge, assess, collect or receive an
advance fee from a borrower to provide services as a loan broker.

2. The knowing charging, assessment, collection or receipt of an advance
fee, in violation of this section, is a class A misdemeanor. (L. 1992
S.B. 705)

Each principal of a loan broker shall be liable under sections
407.010 to 407.140, RSMo, for the actions of the loan broker, including
its agents or employees, in the course of business of the loan broker.
(L. 1992 S.B. 705)

1. Violation of any provision of sections 367.300 to 367.310
shall be deemed an unlawful practice under sections 407.010 to 407.130,
RSMo, and shall be subject to all penalties, remedies and procedures
provided in sections 407.010 to 407.130, RSMo. The attorney general shall
have all powers, rights and duties regarding violations of sections
367.300 to 367.310 as are provided in sections 407.010 to 407.130, RSMo,
and shall have the rulemaking authority as provided in section 407.145,
RSMo.

2. The provisions of sections 367.300 to 367.310 are not exclusive. The
remedy specified in sections 367.300 to 367.310 for violation of sections
367.300 to 367.310 or for conduct described in sections 367.300 to
367.310 shall be in addition to any other procedures or remedies for any
violation or conduct provided for by any other law, including chapter
407, RSMo. Nothing in sections 367.300 to 367.310 shall limit any other
statutory or any common law rights of the attorney general, any circuit
attorney or prosecuting attorney, or any other person. If any act or
practice prescribed by sections 367.300 to 367.310 is also the basis for
a cause of action in common law or a violation of another statute, the
purchaser may assert the common law or statutory cause of action under
the procedures and with the remedies applicable thereto. (L. 1992 S.B.
705)

As used in sections 367.500 to 367.533, unless the context
otherwise requires, the following terms mean:

(1) "Borrower", a person who borrows money pursuant to a title loan
agreement;

(2) "Capital", the assets of a person less the liabilities of that
person. Assets and liabilities shall be measured according to generally
accepted accounting principles;

(3) "Certificate of title", a state-issued certificate of title or
certificate of ownership for personal property;

(4) "Director", the director of the division of finance of the department
of economic development or its successor agency;

(5) "Person", any resident of the state of Missouri or any business
entity formed under Missouri law or duly qualified to do business in
Missouri;

(6) "Pledged property", personal property, ownership of which is
evidenced and delineated by a title;

(7) "Title lending office" or "title loan office", a location at which,
or premises in which, a title lender regularly conducts business;

(8) "Title lender", a person qualified to make title loans pursuant to
sections 367.500 to 367.533 who maintains at least one title lending
office within the state of Missouri, which office is open for the conduct
of business not less than thirty hours per week, excluding legal holidays;

(9) "Title loan agreement", a written agreement between a borrower and a
title lender in a form which complies with the requirements of sections
367.500 to 367.533. The title lender shall perfect its lien pursuant to
sections 301.600 to 301.660, RSMo, but need not retain physical
possession of the titled personal property at any time; and

(10) "Titled personal property", any personal property excluding property
qualified to be a personal dwelling the ownership of which is evidenced
by a certificate of title. (L. 1998 H.B. 1526 § 1, A.L. 2001 H.B. 738
merged with S.B. 186)

1. The director shall administer and regulate sections 367.500
to 367.533. The director, deputy director, other assistants and
examiners, and all special agents and other employees shall keep all
information concerning title lenders confidential as required by sections
361.070 and 361.080, RSMo.

2. No employee of the division of finance shall have any ownership or
interest in any title loan business or receive directly or indirectly any
payment or gratuity from any such entity.

3. The director shall issue as many title loan licenses as may be applied
for by qualified applicants.

4. No rule or portion of a rule promulgated pursuant to the authority of
sections 367.500 to 367.533 shall become effective unless it has been
promulgated pursuant to the provisions of chapter 536, RSMo. (L. 1998
H.B. 1526 § 2, A.L. 2001 H.B. 738 merged with S.B. 186)

1. Any person who acts as a title lender without a title loan
license is subject to both civil and criminal penalties.

2. All title loan agreements entered into by a person who acts in
violation of the licensing requirements of sections 367.500 to 367.533,
and all title pledges accepted by such person, shall be null and void.
Any borrower who enters into a title loan agreement with a person who
acts in violation of the provisions of sections 367.500 to 367.533 shall
not be bound by such agreement, and such borrower's only liability shall
be for the return of the principal.

3. The attorney general may initiate a civil action against any person
who acts as a title lender without a title loan license. Such action
shall be commenced in the circuit court for any county in which the
person executed any title loan agreement and any county in which any of
the pledged titled personal property is normally kept. The civil penalty
for title lending without a title loan license shall be not less than one
thousand dollars and not more than five thousand dollars for each day
that a person acts in violation of the licensing requirement. If the
violation of the licensing requirement is intentional or knowing, the
person shall be barred from applying for a title loan license for a
period of five years from the date of the last violation.

4. A first offense violation of the licensing requirement pursuant to
this section shall be a class C misdemeanor. Second and subsequent
offenses shall be class A misdemeanors. For purposes of jurisdiction and
venue, the crime of unlawful title lending shall be deemed to have
occurred in both the county in which an unlawful title loan agreement was
executed and the county in which the pledged property is normally kept.
(L. 1998 H.B. 1526 § 3, A.L. 2001 H.B. 738 merged with S.B. 186)

1. A title loan license applicant must have and maintain capital
of at least seventy-five thousand dollars at all times.

2. The license application shall be in writing, under oath and in the
form prescribed by the director. The application shall contain the name
of the applicant, date of formation if a business entity, the address of
each title loan office operated or sought to be operated, the name and
residential address of the owner, partners, directors, trustees and
principal officers, and such other pertinent information as the director
may require. A corporate surety bond in the principal sum of twenty
thousand dollars per location shall accompany each license application.
The bond shall be in a form satisfactory to the director and shall be
issued by a bonding company or insurance company authorized to do
business in this state in order to ensure the faithful performance of the
obligations of the applicant and the applicant's agents and subagents in
connection with title loan activities. An applicant or licensee may, in
lieu of filing any bond required pursuant to this section, provide the
director with an irrevocable letter of credit as defined in section
400.5-103, RSMo, in the amount of twenty thousand dollars per location,
issued by any bank, trust company, savings and loan or credit union
operating in Missouri in a form acceptable to the director.

3. Every person applying for a title loan license shall pay one thousand
dollars as an investigation fee. Applicants for additional title lending
licenses shall pay one thousand dollars per additional location as an
investigation fee. The lender shall, beginning with the first license
renewal, pay annually to the director a fee of one thousand dollars for
each licensed location.

4. Each license shall specify the location of the title loan office and
shall be conspicuously displayed therein. Before any title lending office
may relocate, the director shall approve such relocation by mailing the
licensee a new license to that effect, without charge.

5. Upon the filing of the application, and the payment of the fee, by a
person eligible to apply for a title loan license, the director shall
issue a license to engage in the title loan business in accordance with
sections 367.500 to 367.533. The licensing year shall commence on January
first and end the following December thirty-first. The director may
establish a biennial licensing arrangement but in no case shall the fees
be payable for more than one year at a time. Each license shall be
uniquely numbered and shall not be transferable or assignable. (L. 1998
H.B. 1526 § 4, A.L. 2001 H.B. 738 merged with S.B. 186, A.L. 2003 S.B.
346)

1. Every title loan, and each extension or renewal of such title
loan, shall be in writing, signed by the borrower and shall provide that:

(1) The title lender agrees to make a loan to the borrower, and the
borrower agrees to give the title lender a security interest in
unencumbered titled personal property;

(2) Whether the borrower consents to the title lender keeping possession
of the certificate of title;

(3) The borrower shall have the right to redeem the certificate of title
by repaying the loan in full and by complying with the title loan
agreement which may be for any agreed period of time not less than thirty
days;

(4) The title lender shall renew the title loan agreement upon the
borrower's written request and the payment by the borrower of any
interest due at the time of such renewal. However, upon the third renewal
of any title loan agreement, and any subsequent renewal, the borrower
shall reduce the principal by ten percent until such loan is paid in full;

(5) When the loan is satisfied, the title lender shall release its lien
and return the title to the borrower;

(6) If the borrower defaults, the title lender shall be allowed to take
possession of the titled personal property after compliance with chapter
400, RSMo, sections 408.551 to 408.557, RSMo, and sections 408.560 to
408.562, RSMo;

(7) Upon obtaining possession of the titled personal property in
accordance with chapter 400, RSMo, sections 408.551 to 408.557, RSMo, and
sections 408.560 to 408.562, RSMo, the title lender shall be authorized
to sell the titled personal property in accordance with chapter 400,
RSMo, sections 408.551 to 408.557, RSMo, and sections 408.560 to 408.562,
RSMo, and to convey to the buyer thereof good title thereto.

2. Any borrower who obtains a title loan under false pretenses by hiding
or not disclosing the existence of a valid prior lien or security
interest affecting the titled personal property shall be personally
liable to the title lender for the full amount stated in the title loan
agreement. (L. 1998 H.B. 1526 § 5, A.L. 2001 H.B. 738 merged with S.B.
186)

A title lender shall contract for and receive simple interest
and fees in accordance with sections 408.100 and 408.140, RSMo. (L. 1998
H.B. 1526 § 6, A.L. 2001 H.B. 738 merged with S.B. 186)

1. Each title loan agreement shall disclose the following:

(1) All disclosures required by the federal Truth in Lending Act and
regulation Z;

(2) That the transaction is a loan secured by the pledge of titled
personal property and, in at least ten-point bold type, that nonpayment
of the loan may result in loss of the borrower's vehicle or other titled
personal property;

(3) The name, business address, telephone number and certificate number
of the title lender, and the name and residential address of the borrower;

(4) The monthly interest rate to be charged;

(5) A statement which shall be in at least ten-point bold type,
separately acknowledged by the signature of the borrower and reading as
follows:

You may cancel this loan without any costs by returning the full
principal amount to the lender by the close of the lender's next full
business day;

(6) The location where the titled personal property may be delivered if
the loan is not paid and the hours such location is open for receiving
such deliveries; and

(7) Any additional disclosures deemed necessary by the director or
required pursuant to sections 400.9-101 to 400.9-710, RSMo.

2. The division of finance is directed to draft a form to be used in
title loan transactions. Use of this form is not mandatory; however, use
of such form, properly completed, shall satisfy the disclosure provisions
of this section. (L. 1998 H.B. 1526 § 7, A.L. 2001 H.B. 738 merged with
S.B. 186, A.L. 2002 S.B. 895)

The borrower shall be entitled to redeem the security by timely
satisfaction of the terms of the title loan agreement. Upon expiration or
default of a title loan agreement, the title lender may proceed against
the collateral pursuant to chapter 400, RSMo, and with sections 408.551
to 408.557, RSMo, and sections 408.560 to 408.562, RSMo. (L. 1998 H.B.
1526 § 8, A.L. 2001 H.B. 738 merged with S.B. 186)

1. Every title lender shall keep a consecutively numbered record
of each title loan agreement executed, which number shall be placed on
the corresponding title loan agreement itself. Such record shall include
the following:

(1) A clear and accurate description of the titled personal property,
including its vehicle identification or serial number, license plate
number, year, make, model, type, and color;

(2) The date of the title loan agreement;

(3) The amount of the loan;

(4) The date of maturity of the loan; and

(5) The name, date of birth, Social Security number, residential address,
and the type of photo identification of the borrower.

2. The title lender shall photocopy the photo identification of the
borrower or shall take an instant photograph of the borrower, and shall
attach such photocopy or photograph to the lender's copy of the title
loan agreement and all renewals.

3. The borrower shall sign the title loan agreement and shall be provided
with a copy of such agreement. The title lender, or the lender's employee
or agent shall also sign the title loan agreement. The title lender shall
provide each customer with and retain a photocopy of the pledged title at
the time the note is signed.

4. The title lender shall keep the numbered records and copies of its
title loan agreements, including a copy of the notice required pursuant
to subsection 1 of section 367.525, for a period of no less than two
years from the date of the closing of the last transaction reflected
therein. A title lender who ceases engaging in the business of making
title loans shall keep these records for at least two years from the date
the lender ceased engaging in the business. A title lender must notify
the director to request an examination at least ten days before ceasing
business.

5. The records required by this section shall be made available for
inspection by any employee of the division of finance upon request during
ordinary business hours without warrant or court order. (L. 1998 H.B.
1526 § 9, A.L. 2001 H.B. 738 merged with S.B. 186)

1. Before accepting a title loan application, the lender shall
provide the borrower the following notice in at least ten-point bold type
and receipt thereof shall be acknowledged by signature of the borrower:
(Name of Lender) NOTICE TO BORROWER (1.) Your automobile title will be
pledged as security for the loan. If the loan is not repaid in full,
including all finance charges, you may lose your automobile. (2.) This
lender offers short-term loans. Please read and understand the terms of
the loan agreement before signing. I have read the above "NOTICE TO
BORROWER" and I understand that if I do not repay this loan that I may
lose my automobile. _____________ Borrower _____________ Date

2. If the loan is secured by titled personal property other than an
automobile, the lender shall either provide a form with the proper word
describing the security or else shall strike the word "automobile" from
the three places it appears, write or print in the type of titled
personal property serving as security and have the customer initial all
three places.

3. The title lender shall post in a conspicuous location in each licensed
office, in at least fourteen-point bold type the maximum rates that such
title lender is currently charging on any loans made and the statement:

NOTICE:

Borrowing from this lender places your automobile at risk. If this loan
is not repaid in full, including all finance charges, you may lose your
automobile.

This lender offers short-term loans. Please read and understand the terms
of the loan agreement before signing.

4. When making or negotiating loans, the title lender shall take into
consideration in determining the size and duration of a loan contract the
financial ability of the borrower to reasonably repay the loan in the
time and manner specified in the loan contract. (L. 2001 H.B. 738 merged
with S.B. 186)

1. A title lender shall not:

(1) Accept a pledge from a person under eighteen years of age or from
anyone who appears to be intoxicated;

(2) Make a loan which exceeds five thousand dollars;

(3) Accept any waiver of any right or protection of a borrower;

(4) Fail to exercise reasonable care to protect from loss or damage
certificates of title or titled personal property in the physical
possession of the title lender;

(5) Purchase titled personal property in the operation of its business;

(6) Enter into a title loan agreement unless the borrower presents clear
title at the time that the loan is made;

(7) Knowingly violate any provision of sections 367.500 to 367.533 or any
rule promulgated thereunder;

(8) Violate any provision of sections 408.551 to 408.557, RSMo, and
sections 408.560 to 408.562, RSMo; or

(9) Store repossessed titled personal property at a location more than
fifteen miles from the office where the title loan agreement was executed.

2. If a title lender enters into a transaction contrary to this section,
the loan and the lien shall be void. (L. 1998 H.B. 1526 § 10, A.L. 2001
H.B. 738 merged with S.B. 186)

1. Every title lender shall maintain a fireproof place for the
pledged certificates of title and a safe place for pledged property
delivered to or repossessed by the title lender.

2. Every title lender shall maintain premises liability insurance in an
amount of not less than one million dollars per occurrence for the
benefit of customers and employees, which insurance shall provide
coverage for, among other risks, injuries caused by the criminal acts of
third parties.

3. A title lender shall not be liable for any loss or injury occasioned
or caused by the use of pledged property unless the pledged property is
actually in the title lender's possession.

4. A title lender shall be strictly liable to the borrower for any loss
to pledged property in the title lender's possession. (L. 1998 H.B. 1526
§ 11, A.L. 2001 H.B. 738 merged with S.B. 186)

The provisions of sections 408.552 to 408.557, RSMo, and
sections 408.560 to 408.562, RSMo, are applicable to all transactions
pursuant to sections 367.500 to 367.533. (L. 2001 H.B. 738 merged with
S.B. 186)

1. Any title lender which fails, refuses or neglects to comply
with sections 367.500 to 367.533, sections 408.551 to 408.557, RSMo,
sections 408.560 to 408.562, RSMo, or any laws relating to title loans or
commits any criminal act may have its license suspended or revoked by
order of the director after a hearing before said director on an order of
the director to show cause why such order of suspension or revocation
should not be entered specifying the grounds therefor which shall be
served on the title lender at least ten days prior to the hearing.

2. Whenever it shall appear to the director that any title lender is
failing, refusing or neglecting to make a good faith effort to comply
with the provisions of sections 367.500 to 367.533, or any laws relating
to consumer loans, the director may issue an order to cease and desist
which order may be enforceable by a civil penalty of not more than one
thousand dollars per day for each day that the neglect, failure or
refusal shall continue. The penalty shall be assessed and collected by
the director. In determining the amount of the penalty, the director
shall take into account the appropriateness of the penalty with respect
to the gravity of the violation, the history of previous violations, and
such other matters as justice may require. (L. 2001 H.B. 738 merged with
S.B. 186)

No business licensed pursuant to sections 367.500 to 367.530
shall use the terms "pawn" or "pawnbroker" in its title, business name or
advertising. (L. 1998 H.B. 1526 § 12)

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