AN ACT

 

1Amending the act of April 6, 1937 (P.L.200, No.51), entitled "An
2act licensing and regulating the business of pawnbrokers;
3providing for the issuance of licenses by the Secretary of
4Banking; authorizing the Secretary of Banking to make
5examinations and issue regulations; limiting the interest and
6charges on loans; and prescribing penalties for the violation
7of this act," further providing for definitions, for license
8required, for application for license; repealing provisions
9relating to interest and charges, to identity of pledgor, to
10pawn ticket, to negotiability of ticket, to altered ticket,
11to loss of ticket, seizure of ticket or of property offered
12as pledge, to payment or renewal and to pawnbroker's lien on
13pledge; further providing for pawnbroker's lien on pledge;
14further providing for sale of pledge; repealing provisions
15relating to business hours and business with minors; and
16providing for pawnbroker transaction form, for recordkeeping
17and storage, for pledged goods not redeemed, for pawn service
18charges, for prohibited acts, for right to redeem, lost 
19transaction form, for pawnbroker's lien, for claims against 
20purchased goods or pledged goods held by pawnbrokers and for 
21hold orders.

22The General Assembly of the Commonwealth of Pennsylvania
23hereby enacts as follows:

24Section 1. Section 2 of the act of April 6, 1937 (P.L.200,
25No.51), known as the Pawnbrokers License Act, amended June 20,
261947 (P.L.701, No.305) and December 28, 1994 (P.L.1402, No.163),

1is amended to read:

2[Section 2. Definitions.--The following terms shall be
3construed in this act to have the following meanings, except in
4those instances where the context clearly indicates otherwise.

5"Pawnbroker" includes any person, who--(1) engages in the
6business of lending money on the deposit or pledge of personal
7property, other than choses in action, securities, or written
8evidences of indebtedness; or (2) purchases personal property
9with an expressed or implied agreement or understanding to sell
10it back at a subsequent time at a stipulated price; or (3) lends
11money upon goods, wares or merchandise pledged, stored or
12deposited as collateral security.

13"Pledge" means an article or articles deposited with a
14pawnbroker as security for a loan in the course of his business
15as defined in the preceding paragraph.

16"Pledger" means the person who obtains a loan from a
17pawnbroker and delivers a pledge into the possession of a
18pawnbroker, unless such person discloses that he is or was
19acting for another in which case a "pledger" means the disclosed
20principal.

21"Person" includes an individual, partnership, association,
22business corporation, nonprofit corporation, common law trust,
23joint-stock company or any group of individuals however
24organized.

25"Pawnbroking" means the business of a pawnbroker as defined
26in this act.

27"Pawn Ticket" means the card, book, receipt or other record
28furnished to the pledger at the time a loan is granted
29containing the terms of the contract for a loan.

30"Applicant" means any individual, partnership, association,

1business corporation, nonprofit corporation, common law trust,
2joint-stock company or any group of individuals however
3organized applying for a license under this act and/or any
4person appearing as owner, partner, officer, director, trustee
5or other official of a partnership, association, business
6corporation, nonprofit corporation, common law trust, joint-
7stock company or any group of individuals however organized, on
8such application for license under this act.

9"Municipality" includes a city, town, borough or township.

10"Secretary of Banking" includes a designee of the Secretary
11of Banking.]

12Section 1.1. The act is amended by adding a section to read:

13Section 2.1. Definitions.--The following terms shall be
14construed in this act to have the following meanings, except in
15those instances where the context clearly indicates otherwise:

16"Amount financed." The amount of money loaned or principal
17amount.

18"Applicant." Any individual, partnership, association,
19business corporation, nonprofit corporation, common law trust,
20joint-stock company or any group of individuals however
21organized applying for a license under this act and/or any
22person appearing as owner, partner, officer, director, trustee
23or other official of a partnership, association, business
24corporation, nonprofit corporation, common law trust, joint-
25stock company or any group of individuals however organized, on
26such application for license under this act.

27"Appropriate law enforcement official." Includes the
28following:

29(1) the sheriff of the county in which a pawnshop is
30located;

1(2) the police chief of the municipality in which a pawnshop
2is located;

3(3) the law enforcement official designated by the sheriff
4or police chief if the official is employed by the county or
5municipality; or

6(4) the Pennsylvania State Police in the case of a pawnshop
7located in a municipality which does not have a police
8department and receives law enforcement services from the
9Pennsylvania State Police.

10"Beneficial owner." A person who does not have title to a
11property but has rights in the property which are the normal
12incident of owning the property.

13"Claimant." A person who claims that his property was
14misappropriated.

15"Conveying customer." A person who delivers property into
16the custody of a pawnbroker by pawn, sale, consignment or trade.

17"Default date." That date upon which the pledgor's right of
18redemption expires and absolute right, title and interest in the
19pledged goods vests and is deemed conveyed to the pawnbroker by
20operation of law.

21"Identification." A government-issued photographic
22identification, an electronic image taken from a government-
23issued photographic identification or a government-issued non-
24photographic identification.

25"Misappropriated." Stolen, embezzled, converted or otherwise
26wrongfully appropriated against the will of the rightful owner.

27"Municipality." Includes a city, town, borough or township.

28"Net worth." Total assets less total liabilities.

29"Pawn." Any loan of funds on the security of pledged goods
30on condition that the pledged goods are left in the possession

1of the pawnbroker for a specified time period and may be
2redeemed by the pledgor on the terms and conditions contained in
3this act.

4"Pawn service charge." A charge investigating the title,
5storage and insuring of the security, closing the transaction,
6making daily reports to appropriate law enforcement officials,
7expenses and losses and all other services.

8"Pawnbroker." Includes any person, who;

9(1) engages in the business of lending money on the deposit
10or pledge of personal property, other than choses in action,
11securities, or written evidences of indebtedness; or

12(2) purchases personal property with an expressed or implied
13agreement or understanding to sell it back at a subsequent time
14at a stipulated price; or

15(3) lends money upon goods, wares or merchandise pledged,
16stored or deposited as collateral security.

17"Pawnbroker transaction form." The instrument on which a
18pawnbroker records a pawn or purchase as provided in section
1929.1.

20"Pawnbroking." The business of a pawnbroker as defined in
21this act.

22"Pawnshop." The location at which a pawnbroker conducts
23business.

24"Permitted vendor." Includes:

25(1) a vendor who furnishes a pawnbroker with an invoice
26specifying the vendor's name and address, the date of the sale,
27a description of the items sold and the sales price and has an
28established place of business; or

29(2) in the case of a secondhand dealer, has represented in
30writing that such dealer has complied with all applicable

1recordkeeping, reporting and retention requirements pertaining
2to goods sold or otherwise delivered to a pawnbroker.

3"Person." Includes an individual, partnership, association,
4business corporation, nonprofit corporation, common law trust,
5joint-stock company or any group of individuals however
6organized.

7"Pledge." An article or articles deposited with a pawnbroker
8as security for a loan in the course of his business under this
9act.

10"Pledged goods." Tangible personal property that is
11deposited or delivered into the possession of a pawnbroker in
12connection with a pawn. "Pledged goods" does not include a title
13or any other form of written security in tangible property in
14lieu of actual physical possession, including, but not limited
15to, choses in action, securities, printed evidence of
16indebtedness or certificate of titles and other instruments
17evidencing title to separate items of property, including motor
18vehicles. For the purpose of Federal and State law, the term
19"pledged goods" includes only a pledgor's right of redemption
20interest in the tangible personal property for the duration of
21the pawn.

22"Pledgor." The person who obtains a loan from a pawnbroker
23and delivers a pledge into the possession of a pawnbroker,
24unless such person discloses that he is or was acting for
25another in which case a "pledgor" means the disclosed principal.

26"Purchase." The transfer and delivery of goods, by a person
27other than a permitted vendor, to a pawnbroker by acquisition
28for value, consignment or trade for other goods.

29"Secretary of Banking and Securities." Includes a designee
30of the Secretary of Banking and Securities.

1Section 2. Section 3 of the act is amended to read:

2Section 3. License Required.--(a) No person, partnership,
3association, business corporation, nonprofit corporation, common
4law trust, joint-stock company or any group of individuals
5however organized shall, on and after the effective date of this
6act, engage or continue to engage in business as a pawnbroker in
7this Commonwealth except as authorized by this act and without
8first obtaining a license from the Secretary of Banking and 
9Securities.

10(b) No person shall engage in the business of pawnbroking in
11this Commonwealth unless the person has a valid license issued
12by the secretary. A separate license is required for each
13pawnshop. The secretary shall issue a license for each pawnshop
14which meets the requirements for licensure.

15(c) A licensee who seeks to move a pawnshop to another
16location in this Commonwealth shall give written notice to the
17secretary and the appropriate law enforcement official at least
18thirty (30) days before the move. The secretary shall amend the
19license to indicate the new location.

20(d) A license issued under this section is valid for a
21period of one year unless it is earlier relinquished, suspended
22or revoked. The license shall be renewed annually, and each
23licensee shall, initially and annually thereafter, pay to the
24secretary a license fee of three hundred ($300) dollars for each
25license held.

26(e) The secretary may issue a temporary license for the
27operation of a pawnshop upon receipt of any of the following:

28(1) An application to transfer an existing license from one
29person to another.

30(2) An application for a license which has an owner or

1principal that the secretary, in his discretion, determines is
2substantially similar to the existing licensee.

3The temporary license is effective until a permanent license is
4issued or denied by the secretary.

5(f) A person shall apply to the secretary for a new license
6or for a temporary license upon any change, directly or
7beneficially, in the ownership of any pawnshop. An application
8for a license or an application to transfer an existing license
9is not required upon any change, directly or beneficially, in
10the ownership of a pawnshop if one or more holders of at least
11ninety per cent (90%) of the outstanding equity interest of the
12pawnshop before the change in ownership continue to hold at
13least ninety per cent (90%) of the outstanding equity interest
14after the change in ownership.

15(g) Any person applying for or renewing a local occupational
16license to engage in the business of pawnbroking shall obtain a
17valid license to engage in the business of pawnbroking before
18the local business tax receipt may be issued or reissued.

19Section 3. Section 4 of the act, amended December 28, 1994
20(P.L.1402, No.163), is amended to read:

21Section 4. Application for License.--(a) The application
22for such license shall be in writing, under oath and in the form
23prescribed by the Secretary of Banking and Securities and shall
24contain the name and address of the residence of the applicant,
25and if the applicant is a partnership, association, joint-stock
26company or common law trust of every member thereof, and if the
27applicant is a business corporation or nonprofit corporation of
28each officer and director thereof; also the county and
29municipality with street and number, if any, office building and
30room number, if any, where the business is to be conducted and

1such further information as the Secretary of Banking and 
2Securities may require. The application shall be signed by the
3individual owner if the applicant is an individual, by all the
4partners if the applicant is a partnership, by two officers if
5the applicant is an association, joint-stock company or common
6law trust, and by the president and secretary if the applicant
7is a business corporation or a nonprofit corporation.

8(b) Every applicant for a new license shall post, for a
9period of at least thirty (30) days beginning with the day the
10application is filed with the Secretary of Banking and 
11Securities, in a conspicuous place on the outside of the
12premises or at the proposed new location for which the licensee
13applies a notice of the application in the form, of the size and
14containing provisions as the Secretary of Banking and Securities
15may require by its regulations. Proof of the posting of the
16notice shall be filed with the Secretary of Banking and 
17Securities.

18(c) An applicant shall not be eligible for a license who,
19within ten (10) years of receipt of the application by the
20Secretary of Banking and Securities:

21(1) has been convicted or found guilty of or pled guilty or
22nolo contendere to a felony;

23(2) has been convicted or found guilty of or pled guilty or
24nolo contendere to a crime of theft, larceny, dealing in stolen 
25property, receiving stolen property, burglary, embezzlement, 
26obtaining property by false pretenses, possession of altered 
27property or any other fraudulent or dishonest dealing within ten 
28(10) years;

29(3) acts as a beneficial owner for someone who has been
30convicted or found guilty of or pled guilty or nolo contendere

1to a felony or a crime listed under paragraph (2).

2Section 4. Section 12 of the act, amended March 10, 1949
3(P.L.305, No.16), May 20, 1949 (P.L.1485, No.442), July 31, 1963 
4(P.L.423, No.220) and December 28, 1994 (P.L.1402, No.163) is 
5repealed:

6[Section 12. Interest and Charges.--(A) A pawnbroker shall
7not charge, contract for or receive interest in excess of six
8per cent (6%) per year on any loan.

9In addition to interest at the rate of six per cent (6%) per
10year, a pawnbroker may charge and collect from the pledger fees
11for storage, insurance, investigation, and other services which
12shall be--

13Not more than two and one-half per cent (2 1/2%) per month on
14that part of the unpaid principal balance of any loan: Provided,
15however, That a pawnbroker may charge an additional fee of up to
16one dollar ($1.00) to cover reporting relating to any pledge
17required by any governmental unit.

18(B) The interest and charges authorized by this act shall be
19computed at the rates specified on the actual principal balance
20of the loan due for the actual time which has elapsed from the
21date of the loan to the date of payment. For the purpose of
22calculation of interest and charges permitted under this act, a
23year shall be twelve (12) calendar months, and a month shall be
24one calendar month, or any fractional part thereof. A calendar
25month shall be any period from a certain date in one month to
26the same date in the next succeeding month.

27(C) A minimum of twenty-five cents ($.25) on loans of three
28dollars and ninety-nine cents ($3.99), or less, a minimum of
29fifty cents ($.50) on loans of more than three dollars and
30ninety-nine cents ($3.99) and not in excess of six dollars and

1ninety-nine cents ($6.99), a minimum of seventy-five cents
2($.75) on loans of more than six dollars and ninety-nine cents
3($6.99) and not in excess of nine dollars and ninety-nine cents
4($9.99), and a minimum of one dollar ($1.00) on loans in excess
5of ten dollars ($10) and not exceeding fourteen dollars and
6ninety-nine cents ($14.99), and a minimum of one dollar and
7fifty cents ($1.50) on loans in excess of fifteen dollars ($15),
8may be collected on any loan for interest and charges.

9(D) No greater interest nor other fees, fines, charges or
10costs shall be charged, contracted for or received, directly or
11indirectly, under any pretext whatsoever. Interest and charges
12permitted under this act shall not be collected or deducted in
13advance.

14(E) A pawnbroker who charges, contracts for or receives
15interest or charges greater than permitted under this act shall
16forfeit both principal and interest, and shall return the pledge
17upon demand of the pledger, and surrender of the pawn ticket
18without tender or payment of principal or interest. A pledger,
19borrowing money from a pawnbroker licensed under this act, who
20shall have paid any interest and charges in excess of those
21prescribed and allowed by the provisions of this act, shall be
22entitled to recover back from the pawnbroker, by action at law
23commenced within six months from the date of the last payment,
24any and all interest and charges paid in excess of those
25permitted under this act, and in addition fifty dollars ($50.00)
26as a penalty to be paid to the pledger: Provided, nothing in
27this section shall be construed as prohibiting the pawnbroker
28from charging the pledger for actual expenses incurred for
29mailing when a pledge is redeemed by mail.

30A pawnbroker shall at the time of payment furnish to the

1person paying a receipt showing the number of the pawn ticket on
2which the payment is made, the date of payment, the amount paid
3on principal of the loan, the amount paid for interest, and fees
4for storage, insurance, investigation and other services
5contemplated by this section, and the amount, if any, paid to
6the pawnbroker for cleaning, pressing, repairing or other
7similar services to the pledged personal property, which have
8been requested by the pledger. A duplicate copy of every receipt
9issued shall be retained by the pawnbroker for his record.]

10Section 5. Section 13 of the act, amended December 15, 1969
11(P.L.364, No.159), is repealed:

12[Section 13. Identity of Pledger.--At the time of granting
13an original loan, the pawnbroker shall enter upon his records,
14in the form and manner designated by the Secretary of Banking, a
15description of the pledger so as to identify the pledger,
16including the pledger's name and address, and either the
17pledger's motor vehicle operator's number, the pledger's Social
18Security number, or, if the pledger does not have this
19information, such other proof of identity as the Secretary of
20Banking shall provide by regulation.]

21Section 6. Sections 14 and 15 of the act are repealed:

22[Section 14. Pawn Ticket.--At the time of granting a loan
23and upon the subsequent renewal of any loan, the pawnbroker
24shall furnish to the pledger a pawn ticket which is serially
25numbered and which shall contain the following information--name
26and address of the pawnbroker, the name and address of the
27pledger, name and address of disclosed principal, if any, the
28date of the loan, the amount actually loaned, the serial number
29of the loan, description of the pledge, due date of the loan,
30the total amount of principal, interest and charges required to

1redeem the pledge on the due date, a statement setting forth
2that the pledge may be sold after ninety (90) days of the due
3date of the loan if not redeemed. A pawnbroker may insert
4additional provisions on the pawn ticket not inconsistent with
5this act, and he shall insert such other provisions as may be
6required by the Secretary of Banking.

7A duplicate copy of the pawn ticket shall be retained by the
8pawnbroker for his record.

9The pawnbroker shall require the pledger to surrender the
10original pawn ticket when the pledge is released or the loan is
11renewed.

12Section 15. Negotiability of Ticket.--The pledger may by
13delivery of the pawn ticket, assign all his right, title, and
14interest in a pawn ticket and the pledge described therein.
15Except as otherwise provided in this act, the person presenting
16a pawn ticket to the pawnbroker shall be presumed to be the
17pledger and shall be entitled to redeem the pledge, and the
18pawnbroker shall deliver the pledge to the person presenting
19such pawn ticket upon payment of principal, interest, and
20charges on the loan and upon surrender of the pawn ticket.]

21Section 7. Section 16 of the act, amended July 31, 1963
22(P.L.423, No.220), is repealed:

23[Section 16. Loss of Ticket; Seizure of Ticket or of
24Property Offered as Pledge.--Notice of a pawn ticket which has
25been lost, destroyed or stolen shall be furnished to the
26pawnbroker by the pledger in person or by registered mail. The
27receipt of notice by registered mail of a lost, destroyed or
28stolen ticket or the issuance of a stop ticket by the pawnbroker
29after personal notice by the pledger of a lost, destroyed or
30stolen ticket shall be treated by the pawnbroker as a stop

1against the loan. The pawnbroker shall require the alleged
2pledger to furnish an affidavit or written statement as to the
3loss, destruction or theft of the pawn ticket. The pawnbroker,
4upon receipt of such affidavit or written statement, shall
5permit the pledger to redeem the loan or shall furnish the
6pledger with a duplicate pawn ticket, and the pawnbroker shall
7not be liable for any pledge released on such affidavit or
8written statement, unless previous written notice by registered
9mail of an adverse claim was received by the pawnbroker or a
10stop ticket was issued by the pawnbroker.

11Whenever a pawn ticket is presented to a pawnbroker, which
12pawn ticket has previously been reported to such pawnbroker as
13lost or stolen, the pawnbroker may seize and retain such pawn
14ticket on behalf of the rightful owner without incurring any
15liability whatsoever to the person presenting such pawn ticket.

16Whenever any property is offered to a pawnbroker as a pledge
17which is stolen property or which the pawnbroker has reason to
18believe is stolen property, he may seize such property without
19incurring any liability whatsoever, either civil or criminal.
20Upon such seizure of property, a seizure receipt therefor shall
21be issued by the pawnbroker to the person from whom the property
22was seized. Such property and a copy of the seizure receipt
23shall be delivered immediately by the pawnbroker to the police
24authorities.]

25Section 8. Sections 17 and 18 of the act are repealed:

26[Section 17. Altered Ticket.--Whenever a pawn ticket has
27been altered, the pawnbroker's records shall govern, and the
28pawnbroker shall deliver the pledge according to the terms of
29the pawn ticket as originally issued, and shall be relieved of
30any other liability to the pledgor or holder of the ticket.

1Section 18. Counterfeit Ticket.--Whenever a pawn ticket is
2presented to a pawnbroker which is found to be counterfeit, the
3pawnbroker may seize and retain such counterfeit pawn ticket on
4behalf of the rightful owner of the pawn ticket without
5incurring any liability whatsoever to the person presenting such
6pawn ticket.]

7Section 9. Section 19 of the act, amended July 31, 1963
8(P.L.423, No.220), is repealed:

9[Section 19. Payment or Renewal.--A loan granted under the
10provisions of this act shall not be repayable in installments.

11A pledge taken as security on a loan granted under the
12provisions of this act may be retained by the pawnbroker until a
13period of forty-eight (48) hours has elapsed since such pledge
14was received by the pawnbroker.

15A pawnbroker shall, upon receipt of interest and charges,
16renew a loan for the original amount for a period of eight (8)
17months after the date of the original loan. Interest and charges
18on a loan shall not be compounded, nor may the interest or
19charges be added to the principal balance, when a loan is
20renewed for an amount greater than the principal amount due at
21the time of renewal. The pledger shall, however, have the
22privilege of paying the loan in full at any time subsequent to
23forty-eight hours after the granting of the loan by payment of
24principal, interest, and charges authorized under the provisions
25of this act.

26Whenever a loan is renewed, a new pawn ticket shall be
27furnished to the pledger as required under this act.]

28Section 10. Sections 21 and 23 of the act are amended to
29read:

30Section 21. Pawnbroker's Lien on Pledge.--The pawnbroker

1shall have first lien on all pledges for the amount of his loan,
2interest, and charges in all cases, except where the pledging or
3possession thereof by the pledger constituted larceny at common
4law, or except where a prior lien exists by virtue of any other
5statute.

6Except as otherwise provided in this act, a pawnbroker shall
7not be required by legal process, or otherwise, to deliver a
8pledge without surrender of [the pawn ticket] an exact copy of 
9the completed pawnbroker transaction form unless the [pawn
10ticket] pawnbroker transaction form has been impounded or its
11negotiation enjoined by a court of competent jurisdiction.

12Section 23. Sale of Pledge.--Upon default in the payment of
13any loan, a pawnbroker may sell the pledge upon the conditions
14contained in this section.

15A pawnbroker may sell a pledge at private sale for an amount
16not less than that agreed to by the [pledger] pledgor, which
17amount shall be stipulated on the pawn ticket and shall not be
18less than one hundred twenty-five per cent (125%) of the amount
19of the loan. A pledge which cannot be sold at private sale at
20the minimum price agreed to by the [pledger] pledgor must be
21sold at public auction.

22[No unredeemed pledge may be sold before the expiration of
23ninety (90) days after the due date of the loan unless otherwise
24specifically authorized in writing by the pledger. This
25authority to sell an unredeemed pledge prior to the expiration
26of ninety (90) days after the due date of the loan must be given
27by the pledger on a date subsequent to the due date of the loan.

28An unredeemed pledge shall be sold within twelve months of the
29due date of a loan. No interest or charges permitted under this
30act may be collected on a loan after the expiration of twelve

1months of the due date of a loan, whether the loan is renewed,
2or the loan is paid and the pledge redeemed. Where the
3pawnbroker has failed to sell the pledge within six months of
4the due date of the loan, no such interest or charges may be
5computed for the period after six months of the due date of a
6loan in determining the surplus due the pledger if a pledge is
7sold subsequent to six months after the due date of a loan.]

8Section 11. Section 28 of the act is repealed:

9[Section 28. Business Hours.--A pawnbroker shall not
10transact any business on Sunday, nor shall he accept a pledge on
11any other day between the hours of nine o'clock in the evening
12and seven o'clock in the morning, unless further restricted by
13municipal ordinance.]

14Section 12. Section 29 of the act, amended October 10, 1974
15(P.L.709, No.236), is repealed:

16[Section 29. Business with Minors.--A pawnbroker shall not
17accept a pledge from any person under the age of eighteen
18years.]

19Section 13. The act is amended by adding sections to read:

20Section 29.1. Pawnbroker Transaction Form.--(a) When a
21pawnbroker enters into any pawn or purchase transaction, the 
22pawnbroker shall complete a pawnbroker transaction form for such 
23transaction. The form shall include whether the transaction is a 
24pawn or a purchase. The pledgor or seller shall sign such 
25completed form. The pawnbroker transaction form shall not be 
26used if the design and format of the pawnbroker transaction form 
27does not meet the requirements of this section. The pawnbroking 
28transaction form shall be eight and one-half inches by eleven
29inches in size and contain the information required under this 
30section, which must be typed or written indelibly and legibly in
 

1English.

2(b) The front of the pawnbroker transaction form for a pawn
3or purchase, as applicable, shall include all of the following:

4(1) The name and address of the pawnshop.

5(2) A complete and accurate description of the pledged goods
6or purchased goods, including all of the following information:

7(i) Brand name.

8(ii) Model number.

9(iii) Manufacturer's serial number.

10(iv) Size.

11(v) Color, as apparent to the untrained eye.

12(vi) Precious metal type, weight and content, if known.

13(vii) Gemstone description, including the number of stones.

14(viii) In the case of firearms, the type of action, caliber
15or gauge, number of barrels, barrel length and finish.

16(ix) Any other unique identifying marks, numbers, names or
17letters.

18Notwithstanding subparagraphs (ii), (iii) and (vii), a pawn or
19purchase of items of a similar nature delivered together in one
20transaction which do not bear serial or model numbers or do not
21include precious metal or gemstones, such as musical or video
22recordings, books or hand tools, shall not require more than the
23amount of items and a description of the type of items
24delivered.

25(3) The name, address, home telephone number, place of
26employment, date of birth, physical description and right
27thumbprint of the pledgor or seller.

28(4) The date and time of the transaction.

29(5) The type of identification accepted from the pledger or
30seller, including the issuing agency and the identification

1number.

2(b) The front or back of the pawnbroker transaction form for
3a pawn or purchase shall include all of the following:

4(1) The amount of money advanced, which shall be designated
5as the amount financed.

6(2) The maturity date of the pawn, which shall be thirty
7(30) days after the date of the pawn.

8(3) The default date of the pawn and the amount due on the
9default date.

10(4) The total pawn service charge payable on the maturity
11date, which shall be designated as the finance charge.

12(5) The amount financed plus the finance charge that shall
13be paid to redeem the pledged goods on the maturity date, which
14shall be designated as the total of payments.

15(6) The annual percentage rate, computed according to the
16regulations adopted by the Federal Reserve Board under the Truth
17in Lending Act (Public Law 90-321, 15 U.S.C. § 1601 et seq.).

18(7) The amount of money paid for the goods or the monetary
19value assigned to the goods in connection with the transaction.

20(8) A statement that the pledgor or seller of the item
21represents and warrants that it is not stolen, that it has no
22liens or encumbrances against it and that the pledgor or seller
23is the rightful owner of the goods and has the right to enter
24into the transaction.

25(c) The front of the pawnbroker transaction form for a pawn
26shall include a statement of all of the following:

27(1) Any personal property pledged to a pawnbroker within
28this Commonwealth which is not redeemed within thirty (30) days
29after the maturity date of the pawn shall be automatically
30forfeited to the pawnbroker on the next business day after the

1thirty (30) day period, and absolute right, title and interest
2in the property vests and is deemed conveyed to the pawnbroker
3by operation of law and no further notice is necessary.

4(2) The pledgor is not obligated to redeem the pledged
5goods.

6(3) If the pawnbroker transaction form is lost, destroyed or
7stolen, the pledgor shall immediately advise the issuing
8pawnbroker in writing by certified or registered mail, return
9receipt requested or in person evidenced by a signed receipt.

10(4) A pawn may be extended upon mutual agreement of the
11parties.

12(d) A pawnbroker transaction form shall provide a space for
13the imprint of the right thumbprint of the pledgor or seller and
14a blank line for the signature of the pledgor or seller.

15(e) At the time of the pawn or purchase transaction, the
16pawnbroker shall obtain a right thumbprint and signature of the
17pledgor or seller on the correct space and line of the
18pawnbroker transaction form and shall deliver to the pledgor or
19seller an exact copy of the completed pawnbroker transaction
20form.

21(f) Any person who knowingly provides false verification of
22ownership or identification to a pawnbroker in the course of
23pawn or purchase and receives compensation in exchange for
24personal property commits:

25(1) if the value of the money received is less than three
26hundred dollars ($300), a felony of the third degree; or

27(2) if the value of the money received is three hundred
28dollars ($300) or more, a felony of the second degree.

29Section 29.2. Recordkeeping; Storage.--(a) (1) Before the
30end of each business day, a pawnbroker shall deliver, unless

1subsection (d) applies, the original pawnbroker transaction form
2to the appropriate law enforcement official for each transaction
3during the previous business day, unless other arrangements have
4been agreed upon between the pawnbroker and the appropriate law
5enforcement official.

6(2) A pawnbroker shall maintain the original or a copy of
7each completed pawnbroker transaction form on the pawnshop
8premises for at least one year after the date of the
9transaction.

10(3) If the original transaction form is lost or destroyed by
11the appropriate law enforcement official, the copy retained by
12the pawnbroker shall be admissible in court in the same manner
13as an original pawnbroker transaction form.

14(b) When an electronic image of a pledgor or seller 
15identification is accepted for a transaction, the pawnbroker 
16shall maintain the electronic image in order to meet the same 
17recordkeeping requirements as for the original transaction form. 
18If a criminal investigation occurs, the pawnbroker shall, upon 
19request, provide a clear and legible copy of the image to the 
20appropriate law enforcement official.

21(c) If the appropriate law enforcement agency supplies the 
22appropriate software and the pawnbroker presently has the 
23computer ability, pawn transactions shall be electronically 
24transferred. If a pawnbroker does not presently have the
25computer ability, the appropriate law enforcement agency may 
26provide the pawnbroker with a computer and all necessary 
27equipment for the purpose of electronically transferring pawn 
28transaction forms. The appropriate law enforcement agency shall 
29retain ownership of the computer, unless otherwise agreed upon. 
30Notwithstanding ordinary wear and tear, the pawnbroker shall
 

1maintain the computer in good working order.

2(d) A pawnbroker may transfer pawnbroker transaction forms
3electronically to the appropriate law enforcement official. If
4the pawnbroker elects to do so, the pawnbroker shall not be
5required to deliver the original of the pawnbroker transaction
6forms to the appropriate law enforcement official under
7subsection (a)(1), but must retain the original form for a
8period of at least one year from the date of the transaction.
9The appropriate law enforcement official may, for the purposes
10of a criminal investigation, request that the pawnbroker produce
11the original of a transaction form that has been electronically
12transferred. The pawnbroker shall deliver the form to the
13appropriate law enforcement official within twenty-four (24)
14hours of the request.

15(e) All goods delivered to a pawnbroker in a pawn or
16purchase transaction shall be securely stored and maintained in
17an unaltered condition within the jurisdiction of the
18appropriate law enforcement official for a period of thirty (30)
19calendar days after the transaction. The goods delivered to a
20pawnbroker in a purchase transaction shall not be sold or
21otherwise disposed of before the expiration of such period. The
22pawnbroker shall make all pledged and purchased goods and all
23records relating to such goods available for inspection by the
24appropriate law enforcement official during normal business
25hours throughout such period. The pawnbroker may relinquish the
26goods before the end of such period if the pledged goods are
27redeemed by the pledgor or the pledgor's authorized 
28representative.

29Section 29.3. Pledged Goods Not Redeemed.--Pledged goods not
30redeemed by the pledgor on or before the maturity date of a pawn

1shall be held by the pawnbroker for at least thirty (30) days
2after the date until the next business day. Pledged goods not
3redeemed within the period following the maturity date of a pawn
4are automatically forfeited to the pawnbroker and absolute
5right, title and interest in the goods shall vest and be deemed
6conveyed to the pawnbroker by operation of law and no further
7notice shall be necessary. A pledgor has no obligation to redeem
8pledged goods or make any payment on a pawn.

9Section 29.4. Pawn Service Charges.--(a) In a pawn
10transaction, a pawnbroker may contract for and receive a pawn
11service charge, including an interest component. The interest
12component of the pawn service charge shall be deemed to be two
13per cent (2%) of the amount financed for each thirty (30) day
14period in a pawn transaction. The pawnbroker may charge any
15amount of pawn service charge, so long as the total amount,
16inclusive of the interest component, does not exceed twenty-five
17per cent (25%) of the amount financed for the thirty (30) day
18period in a pawn transaction, except that the pawnbroker is
19entitled to receive a minimum pawn service charge of five
20dollars ($5) for such thirty (30) day period.

21(b) The default date of any pawn may be extended to a
22subsequent date by mutual agreement between the pledgor and the
23pawnbroker, except the pawnbroker shall not impose a minimum
24duration of more than thirty (30) days. The new default date
25shall be evidenced by a written memorandum, a copy of which
26shall be supplied to the pledgor. The written memorandum shall
27clearly specify the new default date and the pawn service
28charges owed on the new default date. The daily pawn service
29charge for the extension shall be eight per cent (8%) of the
30original total pawn service charge. There shall be no limit on

1the number of extensions that the parties may agree to.

2(c) The total amount of pawn service charges that a
3pawnbroker may collect in the case of pledged goods redeemed at
4any time within thirty (30) days after the date of the pawn
5shall be the amount provided in subsection (a). The total amount
6of pawn service charges that a pawnbroker may collect in the
7case of redemptions occurring at any time after thirty (30) days
8from the date of the pawn is twice the amount provided in
9subsection (a). For redemptions occurring more than sixty (60)
10days after the date of the pawn, pawn service charges shall
11continue to accrue after the sixty (60) day period at the daily
12rate as provided in subsection (b). Any unused pawn service
13charge paid in advance by the pledgor shall be refunded by the
14pawnbroker.

15(d) Pledged goods may be redeemed by mail by agreement
16between the pledgor and the pawnbroker. The pledgor shall pay in
17advance all moneys due and a reasonable charge assessed by the
18pawnbroker to recover its cost and expenses involved in the
19packaging, insuring and shipping of the pledged goods. The
20pawnbroker shall insure the pledged goods in an amount
21acceptable to the pledgor. The pawnbroker's liability for loss
22or damage in connection with the shipment of such pledged goods
23is limited to the amount of the insurance coverage obtained.

24(e) Any interest, charge or fees contracted for or received,
25directly or indirectly, in excess of the amounts authorized
26under this section shall be prohibited. The amounts in excess
27shall not be collected and shall render the pawn transaction
28voidable. Any pawnbroker who violates this subsection shall:

29(1) forfeit the right to collect twice the amount of the
30pawn service charge contracted for in the pawn; and

1(2) upon the pledgor's written request received by the
2pawnbroker within thirty (30) days after the maturity date, be
3obligated to return to the pledgor the pledged goods delivered
4to the pawnbroker in connection with the pawn upon payment of
5the balance remaining due.

6There shall not be a penalty for an accidental and bona fide
7error that is corrected upon discovery. Any action to circumvent
8the limitation on pawn service charges collectible under this
9section is voidable. If the pledgor makes a partial payment on a
10pawn that reduces the amount financed, any additional pawn
11service charges shall be calculated on the remaining balance of
12the original amount financed.

13Section 29.5. Prohibited Acts.--(a) A pawnbroker, or an
14employee or agent of a pawnbroker, shall not do any of the
15following:

16(1) Falsify or intentionally fail to make an entry of any
17material matter in a pawnbroker transaction form.

18(2) Refuse to allow the secretary, the appropriate law
19enforcement official or any of their designated representatives
20having jurisdiction, to inspect completed pawnbroker transaction
21forms or pledged or purchased goods during the ordinary hours of
22the pawnbroker's business or other time acceptable to both
23parties. The appropriate law enforcement official shall disclose
24to a claimant the name and address of the pawnbroker, the name
25and address of the conveying customer and a description of
26pawned, purchased or consigned goods that the claimant claims to
27be misappropriated.

28(3) Obliterate, discard or destroy a completed pawnbroker
29transaction form before three years after the date of the
30transaction.

1(4) Accept a pledge or purchase property from an individual
2under eighteen (18) years of age.

3(5) Make any agreement requiring or allowing the personal
4liability of a pledgor or the waiver of any of the provisions of 
5this section.

6(6) Knowingly enter into a pawn or purchase transaction with
7any person who is under the influence of alcohol or controlled
8substances when such condition is apparent or with any person
9using the name of another or the registered name of another's
10business.

11(7) Conduct any pawn or purchase transaction at a drive-
12through window or similar device in which the customer remains
13in a vehicle while conducting the transaction.

14(8) Fail to return or replace pledged goods to a pledgor
15upon payment of the full amount due the pawnbroker, unless the
16pledged goods have been placed under a hold order or taken into
17custody by a court or otherwise disposed of by court order.

18(9) Sell or otherwise charge for insurance in connection
19with a pawn transaction, except in connection with the shipment
20of pledged goods redeemed by mail.

21(10) Engage in title loan transactions.

22(11) Lease pledged goods to the pledgor or any other party.

23(12) Operate a pawnshop between the hours of ten o'clock at
24night and nine o'clock in the morning.

25(13) Knowingly hire anyone to work in a pawnshop who has
26been convicted of, entered a plea of guilty or nolo contendere
27to or had adjudication withheld for a felony or a crime
28involving theft, larceny, dealing in stolen property, receiving
29stolen property, burglary, embezzlement, obtaining property by
30false pretenses, possession of altered property or any

1fraudulent or dishonest dealing within the last five (5) years.

2(14) Knowingly accept or receive misappropriated property
3from a conveying customer in a pawn or purchase transaction.

4(15) Knowingly violate any provision of section 29.4, 29.6,
529.7, 29.8 or 29.9.

6(b) A violation of this section shall constitute an unfair
7or deceptive act or practice under the act of December 17, 1968
8(P.L.1224, No.387), known as the "Unfair Trade Practices and
9Consumer Protection Law," and shall be subject to the right of
10the attorney to bring an action to seek appropriate relief as
11provided by that act.

12Section 29.6. Right to Redeem; Lost Transaction Form.--(a)
13Only a pledgor or a pledgor's authorized representative shall be
14entitled to redeem the pledged goods described in the pawnbroker
15transaction form. If the pawnbroker determines that the person
16is not the original pledgor or the pledgor's authorized
17representative, the pawnbroker shall not be required to allow
18the redemption of the pledged goods by such person. The person
19redeeming the pledged goods shall sign the pledgor's copy of the
20pawnbroker transaction form, which the pawnbroker may retain as
21evidence of the person's receipt of the pledged goods. If the
22person redeeming the pledged goods is the pledgor's authorized
23representative, the person shall present notarized authorization
24from the original pledgor and show identification to the
25pawnbroker. The pawnbroker shall record the person's name and
26address on the pawnbroker transaction form retained by the
27pawnshop. It is the pawnbroker's responsibility to verify that
28the person redeeming the pledged goods is either the pledgor or
29the pledgor's authorized representative.

30(b) If a pledgor's copy of the pawnbroker transaction form

1is lost, destroyed or stolen, the pledgor shall notify the
2pawnbroker in writing by certified or registered mail, return
3receipt requested or in person evidenced by a signed receipt,
4and receipt of this notice invalidates the pawnbroker
5transaction form if the pledged goods have not previously been
6redeemed. Before delivering the pledged goods or issuing a new
7pawnbroker transaction form, the pawnbroker shall require the
8pledgor to make a written statement of the loss, destruction or
9theft of the pledgor's copy of the pawnbroker transaction form.
10The pawnbroker shall record on the written statement the type of
11identification and the identification number accepted from the
12pledgor, the date the statement is given and the number of the
13pawnbroker transaction form that was lost, destroyed or stolen.
14The statement shall be signed by the pawnbroker or the pawnshop
15employee who accepts the statement from the pledgor.

16(c) A pawnbroker is entitled to a fee not to exceed two
17dollars ($2) in connection with each lost, destroyed or stolen
18pawnbroker transaction form and the taking of a properly
19prepared written statement. Sales tax shall not be due or
20collectible in connection with the redemption of pledged goods.

21(d) If pledged goods are lost or damaged while in the
22possession of the pawnbroker, the pawnbroker may satisfy the
23pledgor's claim by replacing the lost or damaged goods with like
24kinds of merchandise of equal value with which the pledgor can
25reasonably replace the goods. Such replacement is a defense to
26any civil action based upon the loss or damage of the goods.

27Section 29.7. Pawnbroker's Lien.--A pawnbroker shall have a
28possessory lien on the pledged goods pawned as security for the
29funds advanced, the pawn service charge owed and the other
30charges authorized under this section, but not for other debts

1due to the pawnbroker. A pawnbroker shall not have recourse
2against a pledgor for payment on a pawn transaction except for
3the pledged goods themselves. Except as otherwise provided in
4this section, the pawnbroker shall retain possession of the
5pledged goods until the lien is satisfied or until the default
6date. The pawnbroker may be compelled to relinquish possession
7of the pledged goods only after receipt of the applicable funds
8advanced plus the accrued service charge and other authorized
9charges, upon court order or as otherwise provided by law.

10Section 29.8. Claims Against Purchased Goods or Pledged 
11Goods Held by Pawnbrokers.--(a) To obtain possession of 
12purchased or pledged goods held by a pawnbroker which a claimant 
13claims to be misappropriated, the claimant shall notify the 
14pawnbroker by certified mail, return receipt requested or in 
15person evidenced by signed receipt of the claimant's claim to 
16the purchased or pledged goods. The notice shall contain a 
17complete and accurate description of the purchased or pledged 
18goods and shall be accompanied by a legible copy of the 
19applicable law enforcement agency's report on the 
20misappropriation of such property. If the claimant and the 
21pawnbroker fail to resolve the matter within ten (10) days after 
22the pawnbroker's receipt of the notice, the claimant may 
23petition the court to order the return of the property, naming 
24the pawnbroker as a defendant, and shall serve the pawnbroker 
25with a copy of the petition. The pawnbroker shall hold the 
26property described in the petition until the right to possession 
27is resolved by the parties or by a court of competent 
28jurisdiction. The court shall waive any filing fee for the
29petition to recover the property and the sheriff shall waive the 
30service fees.

1(b) If, after notice and a hearing, the court finds that the
2property was misappropriated and orders the return of the
3property to the claimant, all of the following applies:

4(1) The claimant may recover from the pawnbroker the costs
5of the action, including the claimant's reasonable attorney
6fees.

7(2) If the conveying customer is convicted of theft or
8dealing in stolen property relating to this misappropriation,
9the court shall order the conveying customer to repay the
10pawnbroker the full amount the conveying customer received from
11the pawnbroker for the property, plus all applicable pawn
12service charges. As used in this paragraph, the term "convicted
13of" includes a plea of nolo contendere to the charges or any
14agreement in which adjudication is withheld.

15(3) The conveying customer shall be responsible to pay all
16attorney fees and taxable costs incurred by the pawnbroker.

17(c) The sale, pledge or delivery of tangible personal
18property to a pawnbroker by any person in this Commonwealth
19shall be considered to be all of the following:

20(1) An agreement by the person who sells, pledges or
21delivers the tangible personal property that the person is
22subject to the jurisdiction of the court in all civil actions
23and proceedings arising out of the pledge or sale transaction
24filed by either a resident or nonresident plaintiff.

25(2) An agreement by any nonresident that any process in any
26suit so served has the same legal force and validity as if
27personally served in this Commonwealth.

28Section 29.9. Hold Orders.--(a) When the appropriate law
29enforcement official has probable cause to believe that property
30in the possession of a pawnbroker is misappropriated, the

1official may place a written hold order on the property. The
2written hold order shall impose a holding period not to exceed
3ninety (90) days unless extended by court order. The appropriate
4law enforcement official may rescind, in writing, any hold
5order. The appropriate law enforcement official may place only
6one hold order on property.

7(b) Upon the expiration of the holding period, the
8pawnbroker shall notify, in writing, the appropriate law
9enforcement official by certified mail, return receipt
10requested, that the holding period has expired. If ten (10) days
11after the written notice has been received by the appropriate
12law enforcement official, the pawnbroker has not received from a
13court an extension of the hold order on the property and the
14property is not the subject of a proceeding for relating to
15misappropriation, title to the property shall vest in and be
16deemed conveyed by operation of law to the pawnbroker, free of
17any liability for claims but subject to any restrictions
18contained in the pawn transaction contract and subject to the
19provisions of this section.

20(c) A hold order shall specify all of the following:

21(1) The name and address of the pawnbroker.

22(2) The name, title and identification number of the
23representative of the appropriate law enforcement official or
24the court placing the hold order.

25(3) If applicable, the name and address of the appropriate
26law enforcement official or court to which such representative
27is attached and the number, if any, assigned to the claim
28regarding the property.

29(4) A complete description of the property to be held,
30including model number and serial number if applicable.

1(5) The name of the person reporting the property to be
2misappropriated unless otherwise prohibited by law.

3(6) The mailing address of the pawnbroker where the property
4is held.

5(7) The expiration date of the holding period.

6(d) The pawnbroker or the pawnbroker's representative shall
7sign and date a copy of the hold order as evidence of receipt of
8the hold order and the beginning of the ninety (90) day holding
9period.

10(e) Except as provided under subsection (f), a pawnbroker
11shall not release or dispose of property subject to a hold order
12except pursuant to a court order, a written release from the
13appropriate law enforcement official or the expiration of the
14holding period of the hold order.

15(f) While a hold order is in effect, the pawnbroker shall
16upon request release the property subject to the hold order to
17the custody of the appropriate law enforcement official for use
18in a criminal investigation. The release of the property to the
19custody of the appropriate law enforcement official shall not be
20considered a waiver or release of the pawnbroker's property
21rights or interest in the property. Upon completion of the
22criminal proceeding, the property shall be returned to the
23pawnbroker unless the court orders other disposition. When such
24other disposition is ordered, the court shall additionally order
25the conveying customer to pay restitution to the pawnbroker in
26the amount received by the conveying customer for the property
27together with reasonable attorney's fees and costs.

28Section 14. This act shall take effect in 60 days.