16-714.   Loans secured by pledged goods; written contract required,contents; retention, disposition and redemption of pledged articles.Every loan made by a pawnbroker for which goods are received in pledgeas security shall be evidenced by a written contract, in ink, a copy ofwhich shall be furnished to the borrower. The loan contract shall set forththe loan period, which shall be one (1) month, the date on which the loanis due and payable and the charges, and it shall clearly inform theborrower of his right to redeem the pledge during the redemption period oftwo (2) months after due date. Except as otherwise provided herein, theholder of any such contract shall be presumed to be the person entitled toredeem the pledge, and the pawnbroker shall deliver the pledge to the personpresenting the contract, upon payment of the principal and charges.

      Every pawnbroker shall retain in his possession, after the date on whichthe loan became due and payable, every article pledged to him for aredemption period of two (2) months. During such period, the borrower mayredeem the pledged articles, upon payment of the principal and charges. Itshall be unlawful for any pawnbroker to sell or transfer title orpossession of any pledged property until the expiration of such period ofredemption.

      If any pledged article is not redeemed within such redemption period,the pawnbroker shall become vested with all right, title and interest ofthe pledgor, or his assigns, to such pledged article, to hold and disposeof as his own property. Any other provision of law relating to theforeclosure and sale of pledges shall not be applicable to any pledge, thetitle to which is transferred in accordance with this section.

      History:   L. 1972, ch. 51, § 9; July 1.