07 LC 34
1009
House
Bill 398
By:
Representatives Oliver of the
83rd,
Hugley of the
133rd,
Thomas of the
100th,
Fludd of the
66th,
and Stephenson of the
92nd
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 1 of Chapter 4 of Title 7 of the Official Code of Georgia
Annotated, relating to interest and usury generally, so as to include title pawn
transactions; to amend Title 44 of the Official Code of Georgia Annotated,
relating to property, so as to change the laws relating to pawnbrokers; to
change definitions; to provide for different treatment of title pawn
transactions; to provide for reductions in interest and fees for title pawn
transactions; to provide for notice; to provide for criminal and civil
penalties; to change provisions relating to pawnbrokers´ liens; 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.
Article
1 of Chapter 4 of Title 7 of the Official Code of Georgia Annotated, relating to
interest and usury generally, is amended by revising subsection (a) of Code
Section 7-4-18, relating to the criminal penalty for excessive interest, as
follows:
"(a)
Any person, company, or corporation who shall reserve, charge, or take for any
loan or advance of money, or forbearance to enforce the collection of any sum of
money, any rate of interest greater than 5 percent per month, either directly or
indirectly, by way of commission for advances, discount, exchange, or the
purchase of salary or wages; by notarial or other fees; or by any contract,
contrivance, or device whatsoever shall be guilty of a misdemeanor; provided,
however, that regularly licensed pawnbrokers, as defined in Code Section
44-12-130, are limited in the amount of interest they may charge only by the
limitations set forth in Code
Section
Sections
44-12-131 and
44-12-131.1."
SECTION
2.
Title
44 of the Official Code of Georgia Annotated, relating to property, is amended
by revising Part 5 of Article 3 of Chapter 12, relating to pawnbrokers, as
follows:
"Part
5
44-12-130.
As
used in this part, the term:
(1)
'Month' means that period of time from one date in a calendar month to the
corresponding date in the following calendar month, but if there is no such
corresponding date, then the last day of such following month.
(3)(2)
'Pawn transaction' means any loan on the security of pledged goods or any
purchase of pledged goods on the condition that the pledged goods may be
redeemed or repurchased by the pledgor or seller for a fixed price within a
fixed period of
time,
excluding title pawn transactions as described in paragraph (6) of this Code
section.
(2)(3)
'Pawnbroker' means any person engaged in whole or in part in the business of
lending money on the security of pledged goods
or motor
vehicles or motor vehicle certificates of
title,
or
in the business of purchasing tangible personal property on the condition that
it may be redeemed or repurchased by the seller for a fixed price within a fixed
period of time, or in the business of purchasing tangible personal property from
persons or sources other than manufacturers or licensed dealers as a part of or
in conjunction with the business activities described in this
paragraph.
(4)
'Person' means an individual, partnership, corporation, joint venture, trust,
association, or any other legal entity however organized.
(5)
'Pledged goods' means tangible personal property,
including,
without limitation, all types of motor vehicles or any motor vehicle certificate
of title, which property is purchased by,
deposited with, or otherwise actually delivered into the possession of a
pawnbroker in connection with a pawn transaction.
However,
for purposes of this Code section, possession of any motor vehicle certificate
of title which has come into the possession of a pawnbroker through a pawn
transaction made in accordance with law shall be conclusively deemed to be
possession of the motor vehicle, and the pawnbroker shall retain physical
possession of the motor vehicle certificate of title for the entire length of
the pawn transaction but shall not be required in any way to retain physical
possession of the motor vehicle at any
time. 'Pledged goods' shall not include
choses in action, securities, or printed evidences of indebtedness.
(6)
'Title pawn transaction' means any loan on the security of a motor vehicle or a
motor vehicle certificate of title. A pawnbroker shall retain physical
possession of the motor vehicle certificate of title for the entire length of
the title pawn transaction but shall not be required in any way to retain
physical possession of the motor vehicle at any time.
44-12-131.
(a)(1)
All pawn transactions shall be for 30 day periods but may be extended or
continued for additional 30 day periods.
(2)
A pawnbroker shall not lease back to the seller or pledgor any motor vehicle
during a pawn transaction or during any extension or continuation of the pawn
transaction.
(3)
Unless otherwise agreed, a pawnbroker has upon default the right to take
possession of the motor vehicle. In taking possession, the pawnbroker or his
agent may proceed without judicial process if this can be done without breach of
the peace or may proceed by action.
(4)(2)(A)
During the first 90 days of any pawn transaction 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, 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 addition to the charges provided for in subparagraphs (A) and (B) 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
pawnbroker´s 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
pawnbroker´s possession.
(D)(C)
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)
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.
(5)(3)
No other charge or fee of any kind by whatever name
denominated,
including but not limited to any other storage fee for a motor
vehicle, shall be made by a pawnbroker
except as set out in paragraph
(4)
(2)
of this subsection.
(6)(4)
No fee or charge provided for in this Code section may be imposed unless a
disclosure regarding that fee or charge has been properly made as provided for
in Code Section 44-12-138.
(7)(5)(A)
Any interest, fees, or charges collected which are undisclosed, improperly
disclosed, or in excess of that allowed by this subsection may be recovered by
the pledgor or seller in an action at law in any superior court of appropriate
jurisdiction.
(B)
In any such action in which the pledgor or seller prevails, the court shall also
award reasonable attorneys´ fees, court costs, and any expenses of
litigation to the pledgor or seller.
The court may
award punitive damages to the pledgor or seller if appropriate.
(C)
Before filing an action under this Code section, the pledgor or seller shall
provide the pawnbroker with a written notice by certified mail or statutory
overnight delivery, return receipt requested, that such an action is
contemplated, identifying any fees or charges which the pledgor or seller
contends are undisclosed, improperly disclosed, or in excess of the fees and
charges allowed by this Code section.
If the
court finds that during the 30 days following receipt of this notice the
pawnbroker made a good faith offer to return any excess, undisclosed, or
improperly disclosed charges, the court shall award reasonable attorneys´
fees, court costs, and expenses of litigation to the pawnbroker.
(D)
No action shall be brought under this Code section more than two years after the
pledgor or seller knew or should have known of the excess, undisclosed, or
improperly disclosed charges
or more than
two years after the conclusion of the pawn transaction, whichever is
later.
(b)
Any interest, charge, or fees contracted for or received, directly or
indirectly, in excess of the amounts permitted under subsection (a) of this Code
section shall be uncollectible and the pawn transaction shall be void
and the
pledgor or seller shall have his or her pledged goods returned by the
pawnbroker. All interest and the pawnshop
charge allowed under subsection (a) of this Code section shall be deemed earned,
due, and owing as of the date of the pawn transaction and a like sum shall be
deemed earned, due, and owing on the same day of the succeeding
month.
44-12-131.1.
(a)(1)
All title pawn transactions shall be for 30 day periods but may be extended or
continued for additional 30 day periods.
(2)
A pawnbroker shall not lease back to the pledgor or seller any motor vehicle
during a title pawn transaction or during any extension or continuation of a
title pawn transaction.
(3)(A)
A pawnbroker has upon default of the pledgor the right to take possession of the
motor vehicle that is the subject of a motor vehicle title pawn agreement. At
least ten days prior to repossession, the pawnbroker shall send written notice
to the pledgor by certified mail or statutory overnight delivery, return receipt
requested, indicating that repossession may occur. The notice shall be sent to
the address provided to the pawnbroker by the pledgor at the time the motor
vehicle title pawn agreement was executed or the last address thereafter
provided to the pawnbroker by the pledgor in writing. The pledgor shall be
advised to remove all of his or her personal property from the vehicle before
the repossession occurs. The pawnbroker need only send one such notice during
the life of the title pawn transaction and any extensions thereof
notwithstanding subsequent defaults. In taking possession, the pawnbroker or
the pawnbroker´s agent may proceed without judicial process if this can be
done without breach of the peace or may proceed by action.
(B)
Notwithstanding any other law to the contrary, including but not limited to Code
Section 44-14-403, if a pawnbroker obtains possession of a motor vehicle as
permitted in subparagraph (A) of this paragraph, the pawnbroker shall send a
notice to the pledgor by certified mail or statutory overnight delivery, return
receipt requested, informing the pledgor that the pledgor has 20 days from the
date of such notice to redeem the motor vehicle by paying to the pawnbroker all
amounts owed. The amounts owed shall be disclosed to the pledgor and shall be
calculated pursuant to the provisions of this subsection. During this 20 day
period, the pledgor shall have the right to redeem the motor vehicle and
certificate of title by paying to the pawnbroker the unpaid principal amount of
the title pawn, the unpaid interest, and pawnshop charges calculated at the
rates charged by the pawnbroker in accordance with subparagraphs (A) and (B) of
paragraph (4) of this subsection for each 30 day period from the date of the
title pawn agreement through the date of repossession, plus the repossession and
storage expenses permitted pursuant to subparagraph (C) of paragraph (4) of this
subsection.
(C)
In the event the pledgor does not redeem the motor vehicle within the 20 day
redemption period required by subparagraph (B) of this paragraph, the pawnbroker
shall sell the motor vehicle. The pawnbroker must sell the motor vehicle in a
commercially reasonable manner within 60 days of the expiration of the 20 day
redemption period. Any amount received from such sale in excess of the unpaid
principal amount of the title pawn, the unpaid interest and pawnshop charges
calculated pursuant to subparagraph (B) of this paragraph, and the repossession
and storage expenses actually and reasonably incurred by the pawnbroker shall be
returned to the pledgor within 15 days. For the purposes of this subsection, a
sale is made in a commercially reasonable manner if the sale is made at any
generally known motor vehicle auction or otherwise in conformity with reasonable
commercial practices among dealers in used motor vehicles.
(4)(A)
During the first 90 days of any title pawn transaction or extension or
continuation of the title pawn transaction, a pawnbroker may charge for each 30
day period interest and pawnshop charges which together equal no more than 20
percent of the principal amount advanced, with a minimum charge of up to $10.00
per 30 day period.
(B)
On any title pawn transaction which is continued or extended beyond 90 days, a
pawnbroker may charge for each 30 day period interest and pawnshop charges which
together equal no more than five percent of the principal amount advanced, with
a minimum charge of up to $5.00 per 30 day period.
(C)
In addition to the interest provided for in subparagraphs (A) and (B) of this
paragraph, in a title pawn transaction or in any extension or continuation of a
title pawn transaction, 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
pawnbroker´s 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 or a fee of $100.00 beyond 50 miles, but only if an actual
repossession pursuant to a default takes place on a vehicle which was not
already in the pawnbroker´s possession.
(5)
No other charge or fee of any kind by whatever name denominated shall be made by
a pawnbroker in a title pawn transaction except as set out in paragraph (4) of
this subsection.
(6)
No fee or charge provided for in this Code section may be imposed unless a
disclosure regarding that fee or charge has been properly made as provided for
in Code Section 44-12-138.
(7)(A)
Any interest, fees, or charges collected which are undisclosed, improperly
disclosed, or in excess of that allowed by this subsection may be recovered by
the pledgor or seller in an action at law in any superior court of appropriate
jurisdiction.
(B)
In any such action in which the pledgor or seller prevails, the court shall also
award reasonable attorneys´ fees, court costs, and any expenses of
litigation to the pledgor or seller. The court may award punitive damages to
the pledgor or seller if appropriate.
(C)
Before filing an action under this Code section, the pledgor or seller shall
provide the pawnbroker with a written notice by certified mail or statutory
overnight delivery, return receipt requested, that such an action is
contemplated, identifying any fees or charges which the pledgor or seller
contends are undisclosed, improperly disclosed, or in excess of the fees and
charges allowed by this Code section.
(D)
No action shall be brought under this Code section more than two years after the
pledgor or seller knew or should have known of the excess, undisclosed, or
improperly disclosed charges or more than two years after the conclusion of the
pawn transaction, whichever is later.
(b)
Any interest, charge, or fees contracted for or received, directly or
indirectly, in excess of the amounts permitted under subsection (a) of this Code
section shall be uncollectible and the title pawn transaction shall be void.
All interest and the pawnshop charge allowed under subsection (a) of this Code
section shall be deemed earned, due, and owing as of the date of the title pawn
transaction and a like sum shall be deemed earned, due, and owing on the same
day of the succeeding month.
44-12-132.
Every
pawnbroker shall maintain a permanent record book in which shall be entered in
legible English at the time of each loan, purchase, or sale:
(1)
The date of the transaction;
(2)
The name of the person conducting the transaction;
(3)
The name, age, and address of the customer; a description of the general
appearance of the customer; and the distinctive number from the customer´s
driver´s license or other similar identification card;
(4)
An identification and description of the pledged or purchased goods, including,
if reasonably available, the serial, model, or other number, and all identifying
marks inscribed thereon;
(5)
The number of the receipt or pawn ticket;
(6)
The price paid or the amount loaned;
(7)
If payment is made by check, the number of the check issued for the purchase
price or loan;
(8)
The maturity date of the transaction;
and
(9)
The signature of the
customer;
and
(10)
A statement as to whether the transaction was a pawn transaction or a title pawn
transaction.
44-12-133.
Entries
shall appear in ink and shall be in chronological order. No blank lines may be
left between entries. No obliterations, alterations, or erasures may be made.
Corrections shall be made by drawing a line of ink through the entry without
destroying its legibility. The book shall be open to the inspection of any duly
authorized law enforcement officer during the ordinary hours of business or at
any reasonable time
and shall be
discoverable in any legal
proceeding.
44-12-134.
The
record of each pawn or purchase transaction provided for in Code Sections
44-12-132 and 44-12-133 shall be maintained for a period of not less than four
years.
44-12-135.
Nothing
in this part shall supersede existing local laws nor relieve a pawnbroker from
the necessity of complying with them. The requirements of local laws shall be
construed as cumulative to this part.
44-12-136.
Municipal
authorities may license pawnbrokers, define their powers and privileges by
ordinance, impose taxes upon them, revoke their licenses, and exercise such
general supervision as will ensure fair dealing between the pawnbroker and his
or
her customers.
44-12-137.
(a)
Any pawnbroker and any clerk, agent, or employee of such pawnbroker who
shall:
(1)
Fail to make an entry of any material matter in
his
the
permanent record book;
(2)
Make any false entry therein;
(3)
Falsify, obliterate, destroy, or remove from
his
the
pawnbroker´s place of business such
permanent record book;
(4)
Refuse to allow any duly authorized law enforcement officer who is certified by
the Georgia Peace Officer Standards and Training Council or who is a federal
officer to inspect
his
the
permanent record book or any goods in his
or
her possession during the ordinary hours
of business or at any reasonable time;
(5)
Fail to maintain a record of each pawn transaction for at least four
years;
(6)
Accept a pledge or purchase property from a person under the age of 18 years or
who the pawnbroker knows is not the true owner of such property;
(7)
Make any agreement requiring the personal liability of a pledgor or seller or
waiving any of the provisions of this part or providing for a maturity date less
than one month after the date of the pawn transaction; or
(8)
Fail to return or replace pledged goods to a pledgor or seller upon payment of
the full amount due the pawnbroker unless the pledged goods have been taken into
custody by a court or a law enforcement officer or
agency,
shall
be guilty of a misdemeanor
upon
conviction for the first offense and of a misdemeanor of a high and aggravated
nature upon conviction for the second and any subsequent
offense.
(b)
Any person properly identifying himself
or
herself and presenting a pawn ticket to
the pawnbroker shall be presumed to be the pledgor or seller and shall be
entitled to redeem the pledged goods described in such ticket. In the event
such pledged goods are lost or damaged while in the possession of the
pawnbroker, it shall be the responsibility of the pawnbroker to replace the lost
or damaged goods with like kinds of merchandise and proof of replacement shall
be a defense to prosecution. For the purposes of this subsection, 'lost'
includes destroyed or having disappeared because of any cause, whether known or
unknown, that results in the pledged goods being unavailable for return to the
pledgor.
44-12-138.
(a)(1)
Any pawnbroker as defined in paragraph
(2)(3)
of Code Section 44-12-130 shall include most prominently in any and all types of
advertisements the word 'pawn' or the words 'pawn
transaction.'
and the words
'title pawn,' if appropriate. A
pawnbroker shall not use the term 'loan' in any advertisements or in connection
with any advertising of the business of the pawnbroker; provided, however, that
the provisions of this sentence shall not apply to a pawnbroker in business on
March 1, 1992, which uses the term 'loan' in connection with the name of the
business or with advertising of the business.
(2)
On any sign advertising a pawnbroker´s business, the words on such sign
shall be in at least 24 inch high
letters.
On any other sign on the property where the pawnbroker´s business is
located which advertises any other activities or business engaged in by the
person who is a pawnbroker, the words on such sign shall be in 12 inch high
letters or smaller; provided, however,
that the provisions of this paragraph shall not apply to signs of pawnbrokers
which signs are in existence on March 1, 1992.
(b)
Every pawnbroker in every pawn transaction
or title pawn
transaction shall present the pledgor or
seller with a written disclosure ticket or statement in at least nine-point
type, appropriately completed, with no other written or pictorial matter except
as provided in subsection (c) of this Code section, containing the following
information:
(1)
Information identifying the pawnbroker by name and address;
(2)
A statement as follows:
'This
is a pawn transaction. Failure to make your payments as described in this
document can result in the loss of the pawned item. The pawnbroker can sell or
keep the item if you have not made all payments by the specified maturity
date.';
(3)
If the pawned item is a motor vehicle or motor vehicle certificate of title, a
statement as follows:
'Failure
to make your payment as described in this document can result in the loss of
your motor vehicle. The pawnbroker can also charge you certain fees if he or
she actually repossesses the motor vehicle.';
(4)
A statement that the length of the pawn transaction
or title pawn
transaction is 30 days and that it can
only be renewed with the agreement of both parties and only for 30 day
incremental periods;
(5)
For pawn
transactions:
(A)
The annual percentage rate, computed in accordance with the federal Truth in
Lending Act and regulations under the federal Truth in Lending Act, for the
first 30 days of the transaction, computed as if all interest and pawnshop
charges were considered to be interest;
and
(6)(B)
The annual percentage rate, computed in accordance with the federal Truth in
Lending Act and regulations under the federal Truth in Lending Act, for each 30
day period in which the pawn transaction might be continued or extended,
computed as if all interest and pawnshop charges were considered to be interest.
For purposes of identifying the annual percentage rate after the second
continuation or extension, a single statement which identifies an annual
percentage rate for each possible 30 day period thereafter shall meet the
requirements of this Code section;
(6)
For title pawn transactions, the annual percentage rate, computed in accordance
with the federal Truth in Lending Act and regulations under the federal Truth in
Lending Act and the provisions of Code Section 7-4-18 for the first 30 day
period and each 30 day period in which the pawn transaction might be continued
or extended, computed as if all interest and pawnshop charges were considered to
be interest;
(7)
A statement in dollar amounts of how much it will cost the
seller
or pledgor
or
seller to redeem the merchandise in the
first 30 day period of the transaction;
(8)
A statement in dollar amounts of how much it will cost the
seller
or pledgor
or
seller to redeem the merchandise in any 30
day period after the first 30 day period of the pawn transaction, provided that
all fees and charges have been kept current;
(9)
A statement of the specific maturity date of the pawn transaction;
(10)
A statement of
how long,
the grace period,
the length of
the grace period the pledged goods may be
redeemed after the specific maturity date and the dollar amount which will be
required to redeem the pledged goods after the specific maturity
date;
(11)
A statement that after the grace period the pledged goods become the property of
the pawnbroker;
(12)
If
the
a
title pawn transaction
involves a
motor vehicle or motor vehicle certificate of
title, a statement that the pawnbroker may
not charge a storage fee for the motor vehicle unless the pawnbroker repossesses
the motor vehicle pursuant to a default;
(13)
If
the
a
title pawn transaction
involves a
motor vehicle or motor vehicle certificate of
title, a statement that the pawnbroker may
charge a storage fee for a repossessed motor vehicle not to exceed $5.00 per
day, but only if the pawnbroker actually repossesses and actually must store the
motor vehicle;
(14)
If
the
a
title pawn transaction
involves a
motor vehicle or motor vehicle certificate of
title, a statement that the pawnbroker may
charge a repossession fee, not to exceed $50.00,
or $100.00 if
the vehicle is located more than 50 miles from the
pawnshop, but only if the pawnbroker
actually repossesses the motor vehicle;
(15)
If
the
a
title pawn transaction
involves a
motor vehicle or motor vehicle certificate of
title, a statement that the pawnbroker may
charge a fee to register a lien upon the motor vehicle certificate of title, not
to exceed any fee actually charged by the appropriate state to register a lien
upon a motor vehicle certificate of title, but only if the pawnbroker actually
places such a lien upon the motor vehicle certificate of title;
(16)
A statement that any costs to ship the pledged items to the pledgor or seller
can be charged to the pledgor or seller, along with a handling fee to equal no
more than 50 percent of the actual costs to ship the pledged items;
and
(17)
A statement
that a fee of up to $2.00 can be charged for each lost or destroyed pawn
ticket
Any other
information required to be disclosed to consumers by any other law, rule, or
regulation of the United States or of the State of
Georgia.
(c)
In addition to the information required by subsection (b) of this Code section,
the pawnbroker may, but is not required to, include the following information on
the same disclosure ticket or statement, provided that such information is not
used to obscure or obfuscate the information required by subsection (b) of this
Code section:
(1)
Information identifying the pledgor or seller;
(2)
Any logo which the pawnbroker may desire to use;
(3)
Any numbers or characters necessary for the pawnbroker to identify the
merchandise or goods associated with the pawn transaction
or title pawn
transaction;
(4)
Any other information required to be disclosed to consumers by any other law,
rule, or regulation of the United States or of the State of
Georgia;
(5)(4)
Information identifying or describing the pledged item;
(6)(5)
Information which is only for the internal business use of the
pawnbroker;
(7)(6)
The hours of operation of the pawnbroker;
(8)(7)
The time of day of the pawn transaction; and
(9)(8)
Any agreement between the pledgor or seller and the pawnbroker which does not
controvert the provisions of this part, of Part 5 of Article 8 of Chapter 14 of
this title, or of Part 2 of Article 15 of Chapter 1 of Title 10.
(d)
The pawnbroker shall have the pledgor or seller sign the disclosure statement
and shall furnish a completed copy to the pledgor or seller. The pawnbroker
shall maintain a completed and signed copy of the disclosure statement on file
for two years subsequent to the maturity date of the pawn transaction
or title pawn
transaction. Failure to maintain such a
copy shall be conclusive proof that the pawnbroker did not furnish such a
statement to the pledgor or seller.
(e)
Notwithstanding anything to the contrary contained elsewhere in this Code
section, no municipality or local government may impose any requirements upon a
pawnbroker regarding the disclosures which must be made to a pledgor or seller
or which must be made in the pawn ticket, other than those requirements
contained in this Code section.
44-12-139.
Unless
specified to the contrary in this part, the failure of any pawnbroker to do
anything required of him or her under this part or the act of doing anything
prohibited under this part shall cause the pawnbroker, upon a first conviction,
to be guilty of a misdemeanor punishable by a fine not to exceed $500.00 or by
12 months´ imprisonment, or both. Upon a second or subsequent conviction,
the pawnbroker shall be guilty of a misdemeanor of a high and aggravated
nature."
SECTION
3.
Said
title is further amended by revising Code Section 44-14-403, relating to liens
of pawnbrokers and actions for interference, as follows:
"44-14-403.
(a)
A pawnbroker shall have a lien on the pledged goods pawned for the money
advanced, interest, and pawnshop charge owed but not for other debts due to
him.
He
or her. The
pawnbroker may retain possession of the
pledged goods until
his
the
lien is satisfied and may have a right of action against anyone interfering
therewith.
(b)(1)
There shall be a grace period on all pawn transactions. On pawn transactions
involving motor vehicles or motor vehicle certificates of title, the grace
period shall be 30 calendar days; on all other pawn transactions the grace
period shall be ten calendar days. In the event that the last day of the grace
period falls on a day in which the pawnbroker is not open for business, the
grace period shall be extended through the first day following upon which the
pawnbroker is open for business. The pawnbroker shall not sell the pledged
goods during the grace period.
(2)
By agreement of the parties, the maturity date of the pawn transaction may be
extended or continued for 30 day periods, provided that the interest rates and
charges as specified in Code Section 44-12-131
or
44-12-131.1 are not exceeded. The grace
period shall begin running on the first day following the maturity date of the
pawn transaction or on the first day following the expiration of any extension
or continuation of the pawn transaction, whichever occurs later. All extensions
or continuations of the pawn transaction shall be evidenced in
writing.
(3)
Pledged goods may be redeemed by the pledgor or seller within the grace period
by the payment of any unpaid accrued fees and charges, the repayment of the
principal, and the payment of an additional interest charge not to exceed 12.5
percent of the principal. Pledged goods not redeemed within the grace period
shall be automatically forfeited to the pawnbroker by operation of this Code
section, and any ownership interest of the pledgor or seller shall automatically
be extinguished as regards the pledged item.
(4)
Any attempt to circumvent the interest rates and charges as specified in Code
Section 44-12-131
or
44-12-131.1 shall be null and void. A
pawn transaction shall be considered to have been extended or continued
unless:
(A)
All charges, fees, and the principal have actually been paid or repaid on the
previous pawn transaction;
(B)
The pledged goods in the previous transaction, including but not limited to a
motor vehicle certificate of title, have actually been restored to the
possession of the pledgor or seller; and
(C)
The pledged goods in the previous transaction have been removed from the
business premises of the pawnbroker and, in the case of a motor vehicle
certificate of title, any lien on the motor vehicle certificate of title has
been removed or released."
SECTION
4.
This
Act shall become effective on July 1, 2007, and shall apply to all transactions
entered into on or after that date.
SECTION
5.
All
laws and parts of laws in conflict with this Act are repealed.