May 24, 2005, Introduced by Reps. Brown and Hune and referred to the Committee on Banking and Financial Services.
A bill to amend 1917 PA 273, entitled
"An act to regulate and license pawnbrokers in certain governmental
units of this state; and to prescribe certain powers and duties of
certain local governmental units and state agencies,"
by amending sections 8 and 9 (MCL 446.208 and 446.209), section 8
as amended by 2002 PA 469 and section 9 as amended by 2004 PA 585.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 8. (1) A pawnbroker, at the time of a loan, shall deliver
to
the person pawning or pledging any article a an entry,
memorandum, or note signed by him or her, containing the substance
of
the entry required to be made by him or her in his or her
book
records or database by section 6. A
(2)
The pawnbroker shall not impose or receive a charge shall
not
be made or received by the pawnbroker for the entry,
memorandum, or note.
(3) The entry, memorandum, or note shall be consecutively
numbered, and upon its back shall be printed in English in 12-point
type the following: "If interest or charges in excess of 3% per
month, plus
not including storage and
usage charges provided in
this document, are asked or received, this loan is void and of no
effect; and the borrower cannot be made to pay back the money
loaned, any interest on the loan, or any charges or any part of the
charges, and the pawnbroker loses all right to the possession of
the goods, article, or thing pawned, and shall surrender the item
to the borrower or pawner upon due demand for the item.".
Sec. 9. (1) A licensed pawnbroker may charge upon any loan a
rate of interest not to exceed 3% per month and is not required to
accept any interest less than 50 cents on a single loan.
(2) A pawnbroker may also charge both of the following:
(a) A storage fee of $1.00 per month or fraction of a month
for the storage of unencumbered personal property under any single
pledge or pawn.
(b) (2)
A pawnbroker may charge A
usage fee of $1.00 per
month
or fraction of a month for a usage fee for unencumbered
personal property pawned or pledged and used by the pawner, during
the term of the pawn or pledge.
(3)
A usage fee and a storage fee charged under this
subsection
is (2) are not considered interest.
(4) (3)
A pawnbroker or the pawnbroker's agent or employee
shall not charge or receive interest on the loan in excess of the
amounts
provided for in this act. (4) Interest on any loan is not
payable in advance and shall be computed on unpaid monthly balances
without compounding.
(5) A pawnbroker is not entitled to any examination fee and
shall not make any charge in excess of the amounts provided for in
this act.