All pawnbrokers which means any person who lends
money on a deposit or pledge or who takes other things into possession as
security for money advanced or who makes a public display at his place of
business of the sign generally used by pawnbrokers to denote his business,
namely, three gilt or yellow balls, or who publicly exhibits a sign that
money is to be loaned on things on deposit.
2. How long does it take to get licensed?
If all information and documentation is submitted
correctly at the initial receipt of the application then normal licensure
time is approximately 3 to 4 weeks.It is imperative for all
applicants to be as thorough and timely in the submission of their
application for licensure in order for the Office to efficiently expedite
the licensing time.Please remember that you, the applicant, control
much of the licensure time frame by your thoroughness and correctness in
filing the initial application.
3. What is the fee for licensing?
$1,000; $700 for the licensing fee and $300 for the
4. What qualifications must be met to be eligible
for a license?
To be eligible for a license whether by issuance of a new
license or a transfer of an existing license, an applicant shall meet all of
(1)Be over eighteen years of age and of good
character and reputation.
(2)Not have been convicted of a felony under the
laws of the United States,
the state of Louisiana,
or any other state or country within the last ten years.
(3)Show that the pawnshop shall meet all other
requirements of law.
(4)Have net assets of at least $50,000 or obtain
and file with the commissioner a surety bond issued by a company licensed to
do business in Louisiana in the amount of at $50,000.
5. What if a pawnbroker operates more than one
Each location at which a pawnbroker regularly conducts
business must have a separate license.An application and payment
of a $500 fee for each additional location must be submitted.
6. Does the net assets/surety bond requirement
apply for each location that I operate?
No.The $50,000 net assets requirement applies to the
entity that is being licensed; therefore, if you own one pawnshop, you must
meet and maintain the $50,000 requirement.
If you own four pawnshops, the net asset/bond requirement remains the same.
However, if multiple pawnshops have common ownership but are different
juridical entities, the requirement is $50,000 per entity.
7. What are net assets?
Net assets mean the book value of current assets less
applicable liabilities.Net assets may include capital investment
unencumbered by a lien or other encumbrance and subject to a claim by a
8. What type of financial statement must I
A current balance sheet and income statement should be
submitted.If the information furnished can not be verified, an
audited statement conducted by a licensed CPA can be required.
The audit must be conducted in compliance with Generally Accepted Accounting
9. When is my renewal due? What is the renewal
Your renewal is due no later than September 1st of each successive year.
The fee is $300 per location.
10. Is there a penalty for late renewal?
$150 if the renewal packet is postmarked after September 1st but prior to
11. If I wish to transfer my license to another
entity, what is required?
An application for a new license is required
upon a 25% or more change in the ownership of any licensed pawnshop.
In the event that a licensee wishes to change its legal
entity it shall notify the Commissioner 30 days prior to such change and
submit a fee of $100.A natural person can become a juridical person
and a juridical person can transfer into another juridical person provided
that 75% or more of the ownership in the newly created entity remains the
same as that legal entity currently licensed by the Commissioner.
12. What is a juridical person?
Any juridical person is an entity to which the law
attributes personality, such as a corporation or a partnership.
The personality of a juridical person is distinct from that of its members.
13. What if I cease doing business as a pawnshop?
Before a licensee ceases business, he shall provide 30
days prior written notice to the Commissioner, who will then cancel the
license.The licensee must also provide 30 days prior written
notice to all persons who have things in pledge.
The pawnshop license must be returned, signs must be removed, and the
address of the location where records will be maintained for two years must
be submitted to our Office.
14. What are the designated hours for a pawnshop?
A pawnbroker shall neither open his place of business
before nor keep it open after , except during the month of December
during which the hour of
will be extended to
No pawnbroker may keep his pawnshop open on Sunday except
during the period beginning on the fourth Thursday of November and ending on
15. Are there any restrictions governing the
location of a pawnshop?
Your designated place of business may not be
within 300 feet or less of any official gaming establishment or designated
docking facility of a river boat licensed to conduct gaming activities or
gaming operations pursuant to Chapter 4 or 5 of Title 27 of the Louisiana
Revised Statutes of 1950.
16. Are there any restrictions governing motor
vehicle "title only" pawns?
Under no circumstances shall the practice commonly
referred to as motor vehicle "title only" pawn transactions be allowed in Louisiana.
Every motor vehicle subject to a pawn transaction shall be stored at the
business location at which the transaction occurred or at any other location
in this state secured or maintained by the pawnbroker.
17. What is the penalty if I do not obtain a
Any person who engages in the business of
operating a pawnshop or who advertises in any media or by any means that he
is a pawnbroker without first securing the license shall be punished by a
fine up to five thousand dollars by the commissioner or imprisoned for not
more than one year, or both.
18. Who are the people with whom I
interacting? The Commissioner of
Financial Institutions, John Ducrest, is responsible for all the
facets of the agency.Chief Examiner Darin Domingue oversees all operations in the Non-Depository Division.Deputy Chief Examiner Dale Babin handles questions regarding examinations.Deputy Chief Examiner
Michelle Jeansonne is in
charge of the administrative review of the application.Of course, all employees are willing to assist
you in any way possible.If you have any
questions, please call Michelle Jeansonne at (225) 925-3828.