G45-10 (2) •
Ordinance No. G45-IO
AN ORDINANCE
AMENDING CHAPTER 6.42 OF THE
ELGIN MUNICIPAL CODE, 1976, AS AMENDED,
ENTITLED "PAWNBROKERS"
WHEREAS, 65 ILCS 5/11-42-5 provides in part that the corporate authorities of each
municipality may license, tax, regulate, or prohibit pawnbrokers; and
WHEREAS,the City of Elgin is a home-rule unit; and
WHEREAS, pursuant to Article 7, Section 6 of the Constitution of the State of Illinois,
the City of Elgin, as a home-rule unit, may exercise any power and perform any function
pertaining to its government and affairs, including, but not limited to, the power to regulate for
the protection of the public health, safety, morals and welfare, and to license; and
WHEREAS, Elgin Municipal Code Chapter 6.42 currently provides that no person, firm
or corporation shall conduct or operate the business of a pawnbroker within the corporate limits
of the city; and
WHEREAS, the city council of the City of Elgin has determined that it is desirable to
rallow a limited number of pawnbrokers in the city subject to licensing and other regulations; and
WHEREAS, the regulation of pawnbrokers through licensing and other regulations is
necessary to deter and detect crime and to otherwise protect the public health, safety, morals and
welfare relating to the operations by pawnbrokers; and
WHEREAS, deterring crime, detecting crime, protecting theft victims and recovering
stolen property relates to the protection of the public health, safety, morals and welfare and
pertains to the government and affairs of the City of Elgin.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS:
Section 1. That Chapter 6.42 of the Elgin Municipal Code, 1976, as amended, entitled
"Pawnbrokers"be and is hereby amended by creating in its entirety to read as follows:
"SECTION:
6.42.010: Definitions
6.42.020: License Required
6.42.030: Number of Licenses to be Issued
6.42.040: Application
6.42.050: Fees
6.42.060: Investigation of Applicant
6.42.070: Bond Prerequisite to Issuance
6.42.080: Issuance
6.42.090: Posting
6.42.100: Transfer
6.42.110: Change of Location
6.42.120: Hours of Operation
6.42.130: Prohibited Purchases
6.42.140: Purchasing, Selling; Weapons Prohibited
6.42.150: Sales and Redemptions Regulated
6.42.160: Records of Purchases
6.42.170: Reports to Chief of Police
6.42.180: Inspections of Premises
6.42.190: Waiting Period
6.42.200: Removal of Identifying Marks Prohibited
6.42.210: Video Camera Surveillance Required
6.42.220: Inventory System
6.42.230: Suspension or Revocation
6.42.240: Summary Suspension
6.42.250: Notice of Hearing
6.42.260: Hearings
6.42.270: Appeals
6.42.280: Penalty for Violation
6.42.290: Severability
6.42.010: DEFINITIONS:
"Approved Identification" shall mean any one of the following validly issued and
unexpired forms of identification which includes a photograph of the person: (i) United
States passport, (ii) a state driver's license, (iii) a state issued identification card, (iv) a
military identification card, or(v) a United States permanent resident card.
"Pawnbroker" means any person who lends money on deposit or pledge of personal
property, or deals in the purchase of personal property on condition of selling the same
back at a stipulated price, or who publicly displays at his or her place of business the sign
generally used by pawnbrokers to denote the pawnbroker business, or who publicly
displays a sign which indicates, in substance, a business on the premises which "loans
money for personal property, or deposit or pledge". The business of a pawnbroker shall
not include the lending of money on deposit or pledge of title to property.
"Person" means a natural person, joint venture, joint stock company, partnership,
association, club, company, corporation, business, trust or organization, or the manager,
lessee, agent, servant, officer, or employee of any of them.
6.42.020: LICENSE REQUIRED:
A. No person, either as owner, manager, lessee, officer or agent, or in any other
capacity, shall operate or permit to be operated a pawnbroker establishment
without first having obtained a license from the city to do so. The license fee
shall be due and payable on or before February 1 of each year. The requisite fee
shall accompany all original or renewal applications. Such licenses shall expire
on January 31, next after the date of issue. Failure or neglect to pay the requisite
license fee in a timely manner shall be cause for denial of issuance or non-renewal
or revocation as the case may be.
B. It shall also not be lawful for an individual or business entity to conduct business
in the city using the word "pawn", "pawnshop" or "pawnbroker" in connection
with a business or to transact business in the city in a manner which has a
substantial likelihood of misleading the public by implying that the business is a
pawnshop, without first obtaining a license from the city as provided in this
chapter.
6.42.030: NUMBER OF LICENSES TO BE ISSUED:
The number of pawnbroker licenses shall not exceed one (1) in number.
6.42.040: APPLICATION:
An application for a license required by this chapter shall be made in writing under oath
to the city's finance director on a form prescribed by the city's finance director. All
references to the finance director in this chapter shall be deemed to include the finance
director or his authorized designee. Each application shall include, but not be limited to,
the following information:
A. The name of the individual, partnership, corporation or association applying for a
license.
B. The residence, phone number, date of birth and driver's license number of the
applicant or partners; or, if a corporation or association, the residence, phone
number and driver's license number of the officers and all shareholders owning
more than five percent (5%) of the outstanding shares of stock.
C. The location for which the license is requested.
D. Whether the applicant, its partners, officers or listed shareholders have been
convicted of any criminal offense or ordinance violation (other than traffic or
parking offenses) in any jurisdiction and, if so, a list of such convictions with date
and prosecuting jurisdiction.
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E. Such information as required by the Chief of Police in order to conduct a criminal
history background investigation on the applicant, its partners, officers or listed
shareholders owning more than five percent (5%) of the outstanding shares of
stock.
F. Whether the applicant, its partners, officers or listed shareholders have held a
license or had an interest in a license issued by the city or any other jurisdiction
regulating the purchase or sale of used property revoked for cause, and, if so, list
the date of revocation and jurisdiction.
G. A statement whether the applicant has made application for a similar or other
license on premises other than described in the application, and the disposition of
such application.
6.42.050: FEES:
The applicant for a license required by this chapter shall pay the finance director at the
time of filing an application a license fee of two hundred dollars ($200.00) per calendar
year or part thereof Should the license be denied, the license fee shall be refunded to the
applicant.
6.42.060: INVESTIGATION OF APPLICANT:
Upon receipt of an application for an available license under this chapter, the finance
director shall cause a copy thereof to be sent to the chief of police and the community
development group director both of whom shall report back to the finance director in
thirty (30) days whether the applicant is in accordance with applicable city codes. The
investigation by the chief of police shall include, but not be limited to, conducting a
criminal history background investigation on the applicant, its partners, officers or listed
shareholders owning more than five percent (5%) of the outstanding shares of stock.
6.42.070: BOND PREREQUISITE TO ISSUANCE:
Every applicant for a license under this chapter shall file with the city a license and
permit bond in the penal sum of one thousand dollars ($1,000.00), approved by the
corporation counsel, with the city as obligee, conditioned for the faithful and due
performance of the provisions of this chapter and the laws of the state concerning the
operation of the licensed business, and the payment of all fines and penalties by reason of
the violation thereof
6.42.080: ISSUANCE:
Upon receipt of the report from the chief of police and community development group
director, the finance director shall issue the license requested under this chapter unless it
is determined that:
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A. The applicant is under the age of 18.
B. The location requested is not in a permanent structure.
C. The applicant, its partners, officers or listed shareholders have been convicted of
or had plead guilty to any offense related to theft, burglary, or purchasing or
receiving stolen items under the laws of this state, city or any other jurisdiction
within the past ten years, or have forfeited a bond to appear in court to answer for
charges for such offenses during such time.
D. The location requested and structure to be used would not comply with all
applicable laws including, but not limited to, the zoning code of the city.
E. The applicant, its partners, officers or listed shareholders have held a license or
had an interest in a license issued by the city or any other jurisdiction regulating
pawnbrokers which was revoked for cause.
F. The applicant, its partners, officers or listed shareholders has knowingly furnished
false or misleading information or withheld relevant information on any
application for a license required by this division or any investigation into any
application.
G. The application has not been properly completed and/or the licensing fee required
in this chapter has not been paid.
H. An investigation reveals that the applicant has falsified information on the
application.
I. There is an outstanding code violation on the proposed premises, unless the
applicant can provide satisfactory evidence that the condition will be corrected
within a reasonable time, and the conduct of the business pending the correction
of such condition will not endanger the public health, safety or welfare.
J. There is no pawnbroker's license currently available.
K. Failure to comply with other provisions of this chapter or applicable requirements
of law.
6.42.090: POSTING:
Every license issued under the provisions of this chapter shall, at all times during the
period for which it is effective, be posted in a conspicuous place at or near the principal
entrance to the premises for which the license is issued.
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6.42.100: TRANSFER:
A. No license issued under this division may be transferred to any other person.
B. No corporate pawnbroker licensee shall permit any transfer of its stock which
would vest in aggregate more than five percent (5%) of the stock outstanding in
such corporation in any shareholder unless such shareholder has been certified by
the finance director as meeting the requirements of this chapter.
6.42.110: CHANGE OF LOCATION:
No pawnbroker shall carry on any business required to be licensed under this chapter
except at the location designated on the license. Should the pawnbroker wish to change
the location, application shall be made to the finance director for such change in writing.
The finance director shall approve the change of location unless the new location would
be contrary to the provisions of this chapter, the ordinances of the city or any other
applicable requirements of law.
6.42.120: HOURS OF OPERATION:
No pawnbroker shall purchase, accept or take or receive in pawn any goods, wares,
articles or things whatsoever from any person before the hour of 6:00 a.m. or after the
hour of 9:00 p.m.
6.42.130: PROHIBITED PURCHASES:
No pawnbroker under this chapter shall purchase, accept or take or receive in pawn any
goods, wares, articles, or things under any of the following circumstances:
A. Where the seller is less than the age of 18.
B. Where the seller is intoxicated, as that term is defined in section 10.33.010 of this
Code.
C. Where the seller fails to present at least one form of Approved Identification that
contains the seller's full legal name, residence address and a photograph, as
required in section 6.42.160A6.
D. Where the article to be purchased had an original manufacturer's serial number at
the time it was new, but no longer legibly exhibits such number.
E. Where the seller is known to be a thief or has been convicted of theft, burglary,
robbery or possession of stolen property. A law enforcement officer may provide
such criminal conviction information to a pawnbroker. When any person is found
to be the owner of stolen property which has been pawned, such property shall be
returned to the owner thereof without the payment of the money advanced by the
pawnbroker thereon or any costs or charges of any kind which the pawnbroker
may have placed upon the same.
6.42.140: PURCHASING, SELLING; WEAPONS PROHIBITED:
No pawnbroker shall deal in, buy, sell, accept, take or receive in pawn or display in his
shop, any pistol, revolver, derringer, Bowie knife, dirk or other deadly weapon of like
character, capable of being secreted upon the person.
6.42.150: SALES AND REDEMPTIONS REGULATED:
A. It shall be unlawful for any pawnbroker to charge or collect a greater benefit or
percentage upon money advanced, and for the use and forbearance thereof, than
the rate of three percent (3%) per month. Nothing in this section shall be
construed so as to conflict with the law pertaining to usury, and the person
receiving money so advanced may hold such monies to pay any fees in addition to
interest as herein provided.
B. Each pawnbroker, when making a loan, must disclose, in printed form on the
pawn contract, the following information to the persons receiving the loan:
1. The amount of money advanced, which must be designated as the
amount financed;
2. The maturity date of the pawn, which must be at least thirty (30)
days after the date of the pawn;
3. The total pawn interest and the total service charge payable on the
maturity date, and the total of both which must be designated as
the finance charge;
4. The total of payments that must be paid to redeem the pledged
goods on the maturity date, which must be designated as the total
of payments; and
5. The annual percentage rate, computed according to the regulations
adopted by the Board of Governors of the Federal Reserve System
under the Federal Truth In Lending Act.
C. Each pawnbroker may contract for and receive a monthly finance charge,
including interest and fees, not to exceed one-fifth (1/5) of the loan amount, as set
forth herein, for appraising, investigating title, storing and insuring the collateral,
closing the loan, making daily reports to local law enforcement officers including
enhanced computerized reporting, complying with regulatory requirements and
for other expenses and losses of every nature whatsoever and for all other
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services. Such fees, when made and collected, shall not be deemed interest for
any purpose of law.
D. If the pawner or a pledger fails to repay the loan during the period specified on the
pawn ticket, the pawnbroker shall automatically extend a grace period of thirty
(30) days from the default date on the loan during which the pawnbroker shall not
dispose of or sell the personal property pledged. The parties may agree to extend
or renew a loan upon terms agreed upon by the parties, provided the terms comply
with the requirements of this chapter.
E. Every pawnbroker shall, at the time of each advancement or each loan, deliver to
the person pawning or pledging any goods, articles or things, a memorandum or
note, signed by him or her, containing an identifying pledge number and the
substance of the entry required to be made in the pawnbroker's record book by
Section 6.42.160 of this chapter, and no charge shall be made or received by any
pawnbroker, loan broker or keeper of a loan office for any such entry,
memorandum or note.
F. Every pawnbroker shall for each article pledged attach thereto a tag with the
pledge number, the time when said pledge was obtained and the amount of said
pledge.
G. It shall be unlawful for any person to sell or pledge any property to a pawnbroker
that is not owned by the person selling or pledging such property.
6.42.160: RECORDS OF PURCHASES:
A. Every pawnbroker shall keep and maintain at the licensed location a book in
which the pawnbroker shall cause to be entered in English for each purchase or
receipt of property the following information:
1. A succinct and accurate description of all property taken, purchased or received
in the course of the business licensed under this chapter, including any number or
inscription that may be in or on such property, and the amount paid by the
pawnbroker for such property. The description of each musical instrument,
camera, appliance or machine of any type shall include the brand name; the model
number, if available; any serial number or other identification number installed by
the manufacturer; and a description of every other identifying marking, such as
inscription, a Social Security number, a name, a nickname or address appearing
on the item. The description of each watch shall include the brand name; model
number, if available; a description of the metal or metals of its composition; a
description of the brand, if any; a description of the face by number, color, cut,
shape and type of stone or stones, if any; and a description of any inscriptions
appearing on the watch. The description of each item of jewelry shall include the
type; a description of the metal or metals of its composition; the type, shape and
cut of each stone; and a description of all inscriptions.
2. The full legal name of the person from whom the property is received including
full first name and middle initial, if any.
3. Such person's current residential address, date of birth and physical description;
the amount given or loaned to such person and the terms thereof The physical
description of the person who sells property to the pawnbroker shall consist of
such person's height (as estimated by the pawnbroker) and gender.
4. The signature of the employee who received the property.
5. A signed statement of the person from whom the property was obtained that he
or she is over 18 years of age and the legal owner of same clear of all attachments
and with the legal right to sell.
6. The name and address of the person or persons from whom the property is
received shall be verified from two forms of identification, to be shown to the
pawnbroker by each person selling any property or other items to the pawnbroker.
At least one of the two forms of identification must include an Approved
Identification which lists the person's name and residence address and include a
photograph of such person. The pawnbroker shall make and record a photocopy
or electronic scan of the presented form(s) of Approved Identification. If the
person delivering the used property does not have at least one of the forms of
Approved Identification required by this ordinance, the pawnbroker shall not
complete the transaction.
B. Entries made in the register shall be printed or typed in ink and shall be legible.
C. All entries shall be made immediately upon receipt or purchase of any property.
No entry made in the record of purchases shall be erased, obliterated or defaced.
D. For purposes of this section, the phrase "printed or typed in ink" may include a
computer printout, and "book" includes an accessible computer database capable
of being printed at the pawnbroker's business location.
E. A copy of the completed record shall be kept in a separate book or register by the
pawnbroker and shall be retained for a period of three (3) years. Such book or
register shall at all times during the pawnbroker's business hours be open to the
inspection of any member of the city's police department.
6.42.170: REPORTS TO CHIEF OF POLICE:
A. It shall be the duty of every pawnbroker under this chapter to have available for
delivery to the chief of police, or officer designated by the chief of police, every
business day and before the hour of 12:00 noon, a legible and correct copy from
the register of all personal property, or the valuable things, received or deposited
or purchased the preceding day in whatever quantity received, including property
purchased as used merchandise at wholesale, used merchandise taken in for sale
or possessed on consignment for sale, and used merchandise taken in for trade.
B. No pawnbroker shall be required to furnish such description of any new property
purchased by the pawnbroker from manufacturers, other retailers or wholesale
dealers having an established place of business, or of any goods purchased at open
sale, or from a bankrupt stock. Such goods must be accompanied by a bill of sale
or other evidence of open and legitimate purchase and shall at all times during the
pawnbroker's business hours be open to the inspection of members of the city's
police department.
6.42.180: INSPECTION OF PREMISES;
Every pawnbroker under this chapter and every person employed by him in the conduct
of business shall admit to any and every part of the premises designated in the license,
during the pawnbroker's business hours, any police officer of the city to examine any
goods, articles, things or books or other records on the premises dealing with purchase or
sale of used property.
6.42.190: WAITING PERIOD:
Every pawnbroker under this chapter shall keep all property purchased or received
available for inspection on the licensed premises for a period of ten (10) days from the
date of purchase or receipt. The pawnbroker shall hold such property on the licensed
premises for such ten-day period in such a manner as to be identifiable and separate from
property obtained in other transactions. The pawnbroker shall not alter such property
purchased or received in any manner during the ten-day waiting period. Such ten-day
waiting period shall not apply to any new property purchased by the pawnbroker from
manufacturers, other retailers or wholesale dealers having an established place of
business, or of any goods purchased at open sale, or from a bankrupt stock. Such ten-day
waiting period shall also not apply to property purchased or received by the pawnbroker
in a pawn transaction which has been redeemed by the customer who originally pawned
such property within such ten-day period.
6.42.200: REMOVAL OF IDENTIFYING MARKS PROHIBITED:
No pawnbroker shall remove, alter or obliterate any manufacturers make, model or serial
number, personal identification number, or identifying marks engraved or etched upon an
item of personal property that was purchased or received by the pawnbroker.
6.42.210: VIDEO CAMERA SURVEILLANCE REQUIRED:
Each pawnbroker shall be required to install, operate and maintain a video camera
surveillance system capable of recording clear and unobstructed photographic
representations of the pawnbroker's customers and shall retain the video tape recordings
produced therefrom for at least thirty (30) days. Said video tape recording shall be
subject to inspection and copying by members of the city's police department during the
licensee's business hours.
6.42.220: INVENTORY SYSTEM:
Every pawnbroker shall maintain an inventory system of all property purchased or
received in such a manner that members of the city's police department making an
inspection pursuant to this chapter can readily ascertain the identity of such property and
readily locate such property on the licensed premises.
6.42.230: SUSPENSION OR REVOCATION:
In addition to any other penalty which may be authorized by this Chapter or other city
ordinances, the finance director may suspend or revoke any license issued pursuant to this
Chapter for:
A. Failure of the pawnbroker licensee, its officers, agents or employees to comply
with any provision of this Chapter, any other applicable ordinances, the laws of
the State, federal laws or other applicable legal requirements.
B. Finding that the pawnbroker licensee, its partners, officers or shareholders have
been convicted of any offense set forth in section 6.42.080D of this Chapter; or
C. Finding that the pawnbroker licensee, its p artners, officers or shareholders have
knowingly furnished false or misleading information or withheld relevant
information on any application for a license required by this Chapter or any
investigation on any application.
The pawnbroker shall be responsible for the acts of its agents, servants and employees in
the operation of the business. Prior to holding a hearing concerning the question of
whether a license shall be revoked or suspended, the finance director shall give at least
ten (10) days written notice to the pawnbroker setting forth the alleged violation
specifically. The pawnbroker may present evidence and cross-examine witnesses at such
hearing.
6.42.240: SUMMARY SUSPENSION:
Where the finance director presents to the city manager sufficient evidence demonstrating
probable cause to believe that the licensee has violated the provisions of this code or the
laws of the United States or the State, and that said violation will immediately threaten
the public health, safety or welfare, the city manager may, upon the issuance of a written
order stating the reason for such conclusion, and without prior notice or hearing, order the
licensed premises closed and the license summarily suspended pending a public hearing
and determination on suspension or revocation. Such hearing shall be commenced not
more than seven (7) days following entry of such an order, unless the licensee shall agree
to a longer period of time. The procedures for such a hearing or any appeal with respect
thereto shall be as otherwise provided in this chapter. Upon entry of an order of
summary suspension, the licensee shall be served with a copy of the order and notice of
violation and a hearing in the manner provided by this chapter.
6.42.250: NOTICE OF HEARING:
Except as provided in section 6.42.240 hereof, prior to suspension or revocation of a
license under this chapter, the licensee shall be notified in writing of the nature of the
violation(s) and an opportunity for a hearing will be provided if a written request for a
hearing is filed with the finance director by the holder of the license within ten (10) days.
If a written request is filed within ten (10) days, a hearing date shall be set within ten (10)
days of receipt of the request. If no written request for a hearing is filed within ten (10)
days, the suspension or revocation shall be sustained.
6.42.260: HEARINGS:
As provided in this chapter, a hearing shall be conducted by the finance director or his
designee affording the licensee an opportunity to appear and defend the charges. The
finance director shall make a final decision in writing, including the reasons for such
decision, and shall serve such decision on the licensee within ten (10) days after the
conclusion of the hearing.
6.42.270: APPEALS:
A. Any person aggrieved by the action or decision of the city's finance director to
deny, suspend or revoke a license applied for or issued under the provisions of
this chapter shall have the right to appeal such action or decision to the city
manager within ten (10) days after the notice of action or decision has been
mailed to the licensee's address as shown on the license application form, or to
the licensee's last known address.
B. An appeal shall be taken by filing with the city's finance director a written
statement sending forth the grounds for appeal.
C. The city's finance director shall transmit the written statement to the city manager
within ten days of its receipt and the city manager shall set a time and place for a
hearing on the appeal. The city manager may designate an authorized
representative to conduct such hearing.
D. A hearing shall be set not later than twenty (20) days from the date of receipt of
the appellant's written statement.
E. Notice of the time and place of the hearing shall be given to the appellant in the
same manner as provided for the mailing of notice of action decision.
F. The city manager or the city manager's designee shall serve a decision on the
licensee within ten(10) days after the conclusion of the hearing on such appeal.
6.42.280: PENALTY FOR VIOLATION:
A. Any person violating any of the provisions or failure to comply with any of the
mandatory requirements of this chapter shall be guilty of an offense. Any person
convicted of an offense under this chapter, in addition to other legal and equitable
remedies available to the city, shall be punished by a fine in an amount of not less
than five hundred dollars ($500.00) for each offense.
B. Any person shall be guilty of a separate offense for each and every day during any
portion of which any violation of any provision of this chapter is committed,
continued or permitted by any such person, and he shall be punished accordingly.
C. The levy and/or payment of any payment or fine provided in this chapter shall not
be deemed a waiver of the power of the city to suspend, revoke or to refuse to
renew a license or to refuse to renew a license or to seek injunctive relief to enjoin
violations of this chapter or other applicable provisions of law.
6.42.290: SEVERABILITY:
(Pik If any provision, cause, sentence, paragraph, section or part of this chapter or application
thereof to any person or circumstance, shall or any reason to be adjudged by a court of
competent jurisdiction to be unconstitutional or invalid, said judgment shall not effect,
impair or invalidate the remainder of this chapter and the application of such provision to
other persons or circumstances, but shall be confined in its operation to the provision,
clause, sentence, paragraph, section or part thereof directly involved in the controversy in
which such judgment shall have been rendered and to the person or circumstances
involved. It is hereby declared to be the legislative intent of the city council that this
chapter would have been adopted had such constitutional or invalid provisions, clause,
sentence,paragraph, section or part thereof not been included."
Section 2. That all ordinances or parts of ordinances in conflict with the provisions of this
ordinance be and are hereby repealed.
Section 3. That this ordinance shall be in full force and effect upon its passage and
publication in the manner provided by law.
Ed Schock, Mayor
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OF'M E:,
Presented: September 22, 2010 G� � ti „
Passed: September 22, 2010 /(. ,
Vote: Yeas: 6 Nays: 0 '-
FAH-
Recorded: September 23 2010
Published: September 23, 2010 ,<'o� _
Attest:
Diane Robertson, City Cl k
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