06 LC 34
0728
House
Bill 1535
By:
Representatives Hugley of the
133rd,
Smith of the
13th,
Oliver of the
83rd,
Porter of the
143rd,
Smyre of the
132nd,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 44 of the Official Code of Georgia Annotated, relating to property,
so as to define interest rates to be charged in pawn transactions involving a
motor vehicle or motor vehicle certificate of title; to provide for related
matters; to provide for an effective date and applicability; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
44 of the Official Code of Georgia Annotated, relating to property, is amended
by striking paragraph (4) of subsection (a) of Code Section 44-12-131, relating
to pawn transactions, in its entirety and inserting in its place a new paragraph
(4) to read as follows:
"(4)(A)
During the first 90 days of any pawn
transaction,
except a pawn transaction involving a motor vehicle or a motor vehicle
certificate of title, or extension or
continuation of the pawn transaction, a pawnbroker may charge for each 30 day
period interest and pawnshop charges which together equal no more than 25
percent of the principal amount advanced, with a minimum charge of up to $10.00
per 30 day period.
(B)
On any pawn transaction which is continued or extended beyond 90 days,
except a pawn
transaction involving a motor vehicle or a motor vehicle certificate of
title, a pawnbroker may charge for each 30
day period interest and pawnshop charges which together equal no more than 12.5
percent of the principal amount advanced, with a minimum charge of up to $5.00
per 30 day period.
(C)
In a pawn transaction or in any extension or continuation of a pawn transaction
involving a motor vehicle or a motor vehicle certificate of title, a pawnbroker
may charge the following interest rates:
(i)
Twenty-five percent for the first 30 day period;
(ii)
Twenty-five percent for the second 30 day period; and
(iii)
Five percent per 30 day period for any further extensions or continuations of
the pawn transaction.
(C)(D)
In addition to the charges provided for in
subparagraphs
(A) and (B)
subparagraph
(C) of this paragraph, in a pawn
transaction or in any extension or continuation of a pawn transaction involving
a motor vehicle or a motor vehicle certificate of title, a pawnbroker may charge
the following:
(i)
A fee equal to no more than any fee imposed by the appropriate state to register
a lien upon a motor vehicle title, but only if the pawnbroker actually registers
such a lien;
(ii)
No more than $5.00 per day in storage fees, but only if an actual repossession
pursuant to a default takes place on a vehicle which was not already in the
pawnbrokeŕs
possession and only for each day the pawnbroker must actually retain possession
of the motor vehicle; and
(iii)
A repossession fee of $50.00 within 50 miles of the office where the pawn
originated, $100.00 within 51 to 100 miles, $150.00 within 101 to 300 miles and
a fee of $250.00 beyond 300 miles, but only if an actual repossession pursuant
to a default takes place on a vehicle which was not already in the
pawnbrokeŕs
possession.
(D)(E)
If a pledgor or seller requests that the pawnbroker mail or ship the pledged
item to the pledgor or seller, a pawnbroker may charge a fee for the actual
shipping and mailing costs, plus a handling fee equal to not more than 50
percent of the actual shipping and mailing costs.
(E)(F)
In the event the pledgor or seller has lost or destroyed the original pawn
ticket, a pawnbroker may, at the time of redemption, charge a fee equal to not
more than
$2.00."
SECTION
2.
This
Act shall become effective on July 1, 2006, and be applicable to all pawn
transactions entered into on or after that date.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.