Pawnbrokers in Lexington must hold a Kentucky Department of Financial Institutions license under KRS Chapter 226. LFUCG requires an additional business license, and Lexington Police receives daily transaction reports through Kentucky's pawn database for stolen-property recovery.
KRS Chapter 226 governs pawnbroker licensing statewide through the Kentucky Department of Financial Institutions, requiring background checks, surety bonds, interest-rate caps, and minimum hold periods on pledged property before redemption or sale. Lexington pawnbrokers also need an LFUCG Chapter 13 business license. Operators must report daily transactions including descriptions, serial numbers, and customer identification through Kentucky's electronic pawn-reporting system, which Lexington Police searches for stolen property. Failure to report transactions or holding pledged items below minimum periods brings state license suspension and local citation.
Operating without state license is a misdemeanor; failing to report transactions or breaching hold periods brings license suspension and local fines.
See how Lexington's pawnbrokers rules stack up against other locations.
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