Troy, NY Business Licensing & Operations: Pawnbrokers (2026)
Key Facts
- License issuer
- The Mayor of Troy
- Bond
- $5,000 with two responsible sureties
- Annual fee
- $250
- License term
- One year from the date of the license
- Interest cap, loans up to $100
- 3% per month for six months, then 2% per month
- Holding period before sale
- Four months, then public auction in the City
Summary
In the City of Troy, New York, pawnbrokers are licensed as collateral loan brokers under Chapter 191 of the City Code. The Mayor issues the license, the licensee files a $5,000 bond, and the fee is $250 yearly. The license names one location and expires one year from its date.
§ 191-16. License required. ... It shall be unlawful for any person to carry on the business of a collateral loan broker, within the corporate limits of the City, without having first obtained from the Mayor a license authorizing such person to carry on the same in the manner and upon the conditions stated in this chapter. § 191-1 ... 8. Bond. ... Every person licensed under this chapter shall, at the time of receiving such license, file with the Mayor granting the same a bond payable to the City, to be executed by the person so licensed and by two responsible sureties, in the penal sum of $5,000, to be approved by the Mayor. ... § 191-19. Fee. ... Any person receiving a license under this chapter shall pay therefor the sum of $250, for the use of the City yearly. § 191-2 ... 2. Expiration; renewal. Every license issued under this chapter shall expire one year from the date thereof and may be renewed on application to the Mayor each and every year on payment of the fee specified in this chapter and upon performance of the other conditions contained in this chapter.
Full Breakdown
The Troy City Council regulates pawn lending in Chapter 191 under the term "collateral loan broker," which covers anyone loaning money on deposit or pledge of personal property other than securities or printed evidences of indebtedness, anyone buying personal property on condition of selling it back at a stipulated price, and any furniture storage warehouse that advances money on pledged goods (§ 191-1). Doing business inside the corporate limits of the City without a license from the Mayor is unlawful (§ 191-16). The Mayor grants licenses, under his or her name and the official seal of the City, to citizens who produce satisfactory evidence of good character (§ 191-17). Each licensee files a bond payable to the City with two responsible sureties in the penal sum of $5,000, approved by the Mayor (§ 191-18), and pays $250 yearly (§ 191-19). The license designates the business location, and operating at any other location is unlawful (§§ 191-20 and 191-21). It expires one year from its date and is renewed on application to the Mayor with payment of the fee (§ 191-22). The Mayor can revoke a license for cause (§ 191-23).
Operating rules sit alongside the license. The broker keeps a book recording each loan, with the goods, the amount, the time of pledging, the rate of interest and the name and residence of the pledger (§ 191-3), and hands the pledger a signed memorandum or note at no charge (§ 191-4). Interest is capped at 3% per month for the first six months and 2% per month after that on loans not exceeding $100, and at 2% per month for the first six months and 1% per month after that on larger loans (§ 191-9). A pledge cannot be sold until it has stayed four months in the broker's possession, and sales are public auctions held in the City, after written notice mailed at least 10 days ahead (§§ 191-11 and 191-12). Dealing with anyone actually or apparently under 21 is prohibited (§ 191-15), and a licensed broker cannot run a secondhand business (§ 191-10).
Violations & Fines
Carrying on the business without a Mayor's license, or at any location other than the one named in the license, is unlawful under §§ 191-16 and 191-21. Chapter 191 prints no penalty of its own and points to the Code's general penalty in Chapter 1, Article II. Section 1-16 sets a fine not exceeding $250 or imprisonment not exceeding 15 days, or both, with each day a separate offense. The Mayor can also revoke the license for cause (§ 191-23).
Frequently Asked Questions
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Sources & Official References
Other rules in Troy
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