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Table of Contents
Title 30-A, c. 183, Subchapter VI
Section 3960 Definitions
Section 3961 License
Section 3962 Account of business done and disclosure to consumer
Section 3963 Civil Pawn transaction terms
Section 3964 (repealed)
Section 3964-A Regulation of pawnbrokers
Section 3965 (repealed)
Maine Revised Statutes
As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.
1. Pawn transaction. “Pawn transaction” means the lending of money on the security of pledged tangible personal property. The term also includes the purchase of tangible personal property on the condition that it may be repurchased by the seller for a fixed price within a fixed period of time.
2. Pawnbroker. “Pawnbroker” means a person who engages in pawn transactions.
The municipal officers of any municipality may grant licenses to persons of good moral character to be pawnbrokers in the municipality for one year, unless sooner revoked by the municipal officers for violation of law. Whoever carries on such a business without a license commits a civil violation for which a forfeiture of not more than $100 may be adjudged.
§3962. Account of business done and disclosure to consumer
1. Account kept. Every pawnbroker shall maintain records in which the pawnbroker shall enter:
A. The date, duration, amount, periodic rate of interest and annual percentage rate of every loan that is made;
A-1. The finance charge, due dates for payment and the total payment needed to redeem or repurchase the pawned property;
B. An accurate account and description of the property pawned;
B-1. The terms of redemption or repurchase, including any reduction in the finance charge for early redemption or repurchase and the right of the consumer to at least one extension of one month at the same rate of interest upon request in writing or in person; and
C. The name and residence of the consumer.
The pawnbroker shall allow the municipal officers to inspect these records at all reasonable times.
2. Delivery to consumer. At the time of the pawn transaction, the pawnbroker shall deliver to the consumer a signed, written disclosure complying with the truth-in-lending provisions of the Maine Consumer Credit Code, containing the items required by subsection 1 and the name and address of the pawnbroker.
3. Lists filed with law enforcement agency. Before the 15th day of every month, the pawnbroker shall file with the law enforcement agency of jurisdiction, in a form acceptable to that agency, a summary of the pawn transactions entered into during the preceding calendar month.
4. Violation. A violation of this section constitutes a violation of Title 9-A, section 5-201, subsection 1, subject to the civil remedies of the Maine Consumer Credit Code, and constitutes a violation of the Maine Unfair Trade Practices Act.
§3963. Pawn transaction terms
1. Maximum finance charge established. A pawnbroker may not directly or indirectly receive a finance charge of greater than 25% per month on that part of a loan that is $500 or less, nor more than 20% per month on that part of a loan that is more than $500, made upon property pawned. Accrued interest may not be incorporated as interest-bearing principal.
2. Minimum finance charge authorized. Notwithstanding subsection 1, a pawnbroker may contract for and receive a minimum charge of not more than $2.50.
3. Other charge prohibited. A pawnbroker may not charge a fee in addition to a finance charge allowed under subsections 1 and 2.
4. Time period. The initial redemption or repurchase period of a pawn transaction, not including an extension under subsection 5, may not exceed 60 days.
5. Extension required upon request. A consumer is entitled to at least one extension of the pawn transaction of one month at the same rate of interest upon request in writing or in person.
6. Violation. A violation of this section constitutes a violation of Title 9-A, section 5-201, subject to the civil remedies of the Maine Consumer Credit Code, and constitutes a violation of the Maine Unfair Trade Practices Act.
Nothing in this section prohibits a pawnbroker from charging a consumer a lower rate of interest than established by this section.
§3964. Time and manner of selling pawned property; notice
1993, c. 59, §4 (rp.)
§3964-A. Regulation of pawnbrokers
1. Exemption from state license. A pawnbroker licensed by a municipality pursuant to section 3961 is not required to obtain a supervised lender’s license pursuant to Title 9-A, section 2-301 in order to engage in pawn transactions.
2. Application of law. Pawnbrokers are subject to Title 9-A, sections 6-104, 6-106, 6-102 and 6-203.
3. Model forms. The Superintendent of Consumer Credit Protection may issue model disclosure forms and clauses to facilitate compliance with the disclosure and computational requirements of this subchapter, pursuant to the truth-in-lending provisions of the Maine Consumer Credit Code.
§3965. Disposal of proceeds of sale
1993, c. 59 §6 (rp.)