16-719. Loans; interest and charges; amount; term.
16-719
16-719. Loans; interest and charges; amount; term.
(a) No pawnbroker shall contract for,
charge
or receive directly or indirectly on or in connection with any pawnbroker
transaction any charges, whether for interest, storage, insurance, service
fee, handling, compensation, consideration or expense which in the
aggregate are greater than the charges provided and authorized by this act.
Any other provisions of law relating to interest, storage and such charges
shall not be applicable to any pawnbroker transaction made in accordance
with this act.
(b) Whenever any loan is made by a pawnbroker for which goods are
received in pledge:
(1) A charge may be added in an amount not to
exceed 10% per month or
120% per annum of
the amount advanced to the borrower; and
(2) the amount of the loan shall not exceed $5,000.
(c) The term of any loan made under the provisions of this act shall be
one month. Loans may be extended or renewed by the payment of the
charges herein provided monthly. The charges authorized herein shall be
deemed to be earned at the time the loan is made and shall not be subject
to refund. On loans under this act, no insurance charges or any other
charges of any nature whatsoever shall be permitted.
History: L. 1972, ch. 51, § 14;
L. 1991, ch. 69, § 1; July 1.