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AN ACT Relating to loans made by pawnbrokers; and amending RCW 19.60.010, 19.60.060, and 19.60.061.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 19.60.010 and 1991 c 323 s 1 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) Melted metals means metals derived from metal junk or precious metals that have been reduced to a melted state from other than ore or ingots which are produced from ore that has not previously been processed.

(2) Metal junk means any metal that has previously been milled, shaped, stamped, or forged and that is no longer useful in its original form, except precious metals.

(3) Nonmetal junk means any nonmetal, commonly discarded item that is worn out, or has outlasted its usefulness as intended in its original form except nonmetal junk does not include an item made in a former period which has enhanced value because of its age.

(4) Pawnbroker means every person engaged, in whole or in part, in the business of loaning money on the security of pledges of personal property, or deposits or conditional sales of personal property, or the purchase or sale of personal property.

(5) Precious metals means gold, silver, and platinum.

(6) Second-hand dealer means every person engaged in whole or in part in the business of purchasing, selling, trading, consignment selling, or otherwise transferring for value, second-hand property including metal junk, melted metals, precious metals, whether or not the person maintains a fixed place of business within the state. Second-hand dealer also includes persons or entities conducting business at flea markets or swap meets, more than three times per year.

(7) Second-hand property means any item of personal property offered for sale which is not new, including metals in any form, except postage stamps, coins that are legal tender, bullion in the form of fabricated hallmarked bars, used books, and clothing of a resale value of seventy-five dollars or less, except furs.

(8) Transaction means a pledge, or the purchase of, or consignment of, or the trade of any item of personal property by a pawnbroker or a second-hand dealer from a member of the general public.

(9) ((~~Term of the loan as defined in this chapter shall be set for a period of thirty days to include the date of the loan.~~)) "Loan period" means the period of time from the date the loan is made until the date the loan is paid off, the loan is in default, or the loan is refinanced and new loan documents are issued, including all grace or extension periods.

Sec. 2. RCW 19.60.060 and 1991 c 323 s 7 are each amended to read as follows:

All pawnbrokers are authorized to charge and receive interest and other fees at the following rates for money on the security of personal property actually received in pledge:

(1) The interest for the loan period shall not exceed:

(a) For an amount loaned up to $ 9.99 ‑ interest at $1.00 for each thirty-day period to include the loan date.

(b) For an amount loaned from $10.00 to $19.99 ‑ interest at the rate of $1.25 for each thirty-day period to include the loan date.

(c) For an amount loaned from $20.00 to $24.99 ‑ interest at the rate of $1.50 for each thirty-day period to include the loan date.

(d) For an amount loaned from $25.00 to $34.99 ‑ interest at the rate of $1.75 for each thirty-day period to include the loan date.

(e) For an amount loaned from $35.00 to $39.99 ‑ interest at the rate of $2.00 for each thirty-day period to include the loan date.

(f) For an amount loaned from $40.00 to $49.99 ‑ interest at the rate of $2.25 for each thirty-day period to include the loan date.

(g) For the amount loaned from $50.00 to $59.99 ‑ interest at the rate of $2.50 for each thirty-day period to include the loan date.

(h) For the amount loaned from $60.00 to $69.99 ‑ interest at the rate of $2.75 for each thirty-day period to include the loan date.

(i) For the amount loaned from $70.00 to $79.99 ‑ interest at the rate of $3.00 for each thirty-day period to include the loan date.

(j) For the amount loaned from $80.00 to $89.99 ‑ interest at the rate of $3.25 for each thirty-day period to include the loan date.

(k) For the amount loaned from $90.00 to $99.99 ‑ interest at the rate of $3.50 for each thirty-day period to include the loan date.

(l) For the amount loaned from $100.00 or more ‑ interest at the rate of three percent for each thirty-day period to include the loan date.

(2) The fee for the preparation of loan documents, pledges, or reports required under the laws of the United States of America, the state of Washington, or the counties, cities, towns, or other political subdivisions thereof, shall not exceed:

(a) For the amount loaned up to $4.99 ‑ the sum of $.50;

(b) For the amount loaned from $5.00 to $9.99 ‑ the sum of $2.00;

(d) For the amount loaned from $15.00 to $19.99 ‑ the sum of $3.50.

(e) For the amount loaned from $20.00 to $24.99 ‑ the sum of $4.00.

(f) For the amount loaned from $25.00 to $29.99 ‑ the sum of $4.50.

(g) For the amount loaned from $30.00 to $34.99 ‑ the sum of $5.00.

(h) For the amount loaned from $35.00 to $39.99 ‑ the sum of $5.50.

(i) For the amount loaned from $40.00 to $44.99 ‑ the sum of $6.00.

(j) For the amount loaned from $45.00 to $49.99 ‑ the sum of $6.50.

(k) For the amount loaned from $50.00 to $54.99 ‑ the sum of $7.00.

(l) For the amount loaned from $55.00 to $59.99 ‑ the sum of $7.50.

(m) For the amount loaned from $60.00 to $64.99 ‑ the sum of $8.00.

(n) For the amount loaned from $65.00 to $69.99 ‑ the sum of $8.50.

(o) For the amount loaned from $70.00 to $74.99 ‑ the sum of $9.00.

(p) For the amount loaned from $75.00 to $79.99 ‑ the sum of $9.50.

(q) For the amount loaned from $80.00 to $84.99 ‑ the sum of $10.00.

(r) For the amount loaned from $85.00 to $89.99 ‑ the sum of $10.50.

(s) For the amount loaned from $90.00 to $94.99 ‑ the sum of $11.00.

(t) For the amount loaned from $95.00 to $99.99 ‑ the sum of $11.50.

(u) For the amount loaned from $100.00 to $104.99 ‑ the sum of $12.00.

(v) For the amount loaned from $105.00 to $109.99 ‑ the sum of $12.25.

(w) For the amount loaned from $110.00 to $114.99 ‑ the sum of $12.75.

(x) For the amount loaned from $115.00 to $119.99 ‑ the sum of $13.25.

(y) For the amount loaned from $120.00 to $124.99 ‑ the sum of $13.50.

(z) For the amount loaned from $125.00 to $129.99 ‑ the sum of $13.75.

(aa) For the amount loaned from $130.00 to $149.99 ‑ the sum of $14.50.

(bb) For the amount loaned from $150.00 to $174.99 ‑ the sum of $14.75.

(cc) For the amount loaned from $175.00 to $199.99 ‑ the sum of $15.00.

(dd) For the amount loaned from $200.00 to $224.99 ‑ the sum of $16.00.

(ee) For the amount loaned from $225.00 to $249.99 ‑ the sum of $17.00.

(ff) For the amount loaned from $250.00 to $274.99 ‑ the sum of $18.00.

(gg) For the amount loaned from $275.00 to $299.99 ‑ the sum of $19.00.

(hh) For the amount loaned from $300.00 to $324.99 ‑ the sum of $20.00.

(ii) For the amount loaned from $325.00 to $349.99 ‑ the sum of $21.00.

(jj) For the amount loaned from $350.00 to $374.99 ‑ the sum of $22.00.

(kk) For the amount loaned from $375.00 to $399.99 ‑ the sum of $23.00.

(ll) For the amount loaned from $400.00 to $424.99 ‑ the sum of $24.00.

(mm) For the amount loaned from $425.00 to $449.99 ‑ the sum of $25.00.

(nn) For the amount loaned from $450.00 to $474.99 ‑ the sum of $26.00.

(oo) For the amount loaned from $475.00 to $499.99 ‑ the sum of $27.00.

(pp) For the amount loaned from $500.00 to $524.99 ‑ the sum of $28.00.

(qq) For the amount loaned from $525.00 to $549.99 ‑ the sum of $29.00.

(rr) For the amount loaned from $550.00 to $599.99 ‑ the sum of $30.00.

(ss) For the amount loaned from $600.00 to $699.99 ‑ the sum of $35.00.

(tt) For the amount loaned from $700.00 to $799.99 ‑ the sum of $40.00.

(uu) For the amount loaned from $800.00 to $899.99 ‑ the sum of $40.00.

(vv) For the amount loaned from $900.00 to $999.99 ‑ the sum of $50.00.

(ww) For the amount loaned from $1000.00 to $1499.99 ‑ the sum of $55.00.

(xx) For the amount loaned from $1500.00 to $1999.99 ‑ the sum of $60.00.

(yy) For the amount loaned from $2000.00 to $2499.99 ‑ the sum of $65.00.

(zz) For the amount loaned from $2500.00 to $2999.99 ‑ the sum of $70.00.

(aaa) For the amount loaned from $3000.00 to $3499.99 ‑ the sum of $75.00.

(bbb) For the amount loaned from $3500.00 to $3999.99 ‑ the sum of $80.00.

(ccc) For the amount loaned from $4000.00 to $4499.99 ‑ the sum of $85.00.

(ddd) For the amount loaned from $4500.00 or more ‑ the sum of $90.00.

(3) Fees under subsection (2) of this section may be charged one time only ((~~during the term of the loan~~)) for each loan period; no additional fees, other than interest allowed under subsection (1) of this section, shall be charged for making the loan.

A copy of this section, set in twelve point type or larger, shall be posted prominently in each premises subject to this chapter.

Sec. 3. RCW 19.60.061 and 1991 c 323 s 8 are each amended to read as follows:

(1) The term of the loan shall be for a period of thirty days to include the date of the loan.

(2) A pawnbroker shall not sell any property received in pledge, until both the term of the loan and a grace period of a minimum of sixty days has expired. However, if a pledged article is not redeemed within the ninety-day period of ((~~both~~)) the term of the loan and the grace period, the pawnbroker shall have all rights, title, and interest of that item of personal property. The pawnbroker shall not be required to account to the pledgor for the proceeds received from the disposition of that item. Any provision of law relating to the foreclosures and the subsequent sale of forfeited pledged items, shall not be applicable to any pledge as defined under this chapter, the title to which is transferred in accordance with this section.

((~~(2)~~)) (3) Every loan transaction entered into by a pawnbroker shall be evidenced by a written document, a copy of which shall be furnished to the pledgor. The document shall set forth the term of the loan((,)); the final date on which the loan is due and payable((,)); the loan preparation fee; the amount of interest charged every thirty days; the total amount due including the principal amount, the preparation fee, and all interest charges due if the loan is outstanding for the full ninety days allowed by the term and minimum grace period; and the annual percentage rate, and shall inform the pledgor of the pledgor's right to redeem the pledge at any time within ((~~sixty days after the expiration of the loan term~~)) the term of the loan or the minimum sixty-day grace period.

(4) If a person who has entered into a loan transaction with a pawnbroker in this state is unable to redeem and repay the loan on or before the expiration of the term of the loan plus the minimum sixty-day grace period, and that person wishes to retain his or her rights to use that item by rewriting the loan, and if both parties mutually agree, an existing loan transaction may be rewritten into a new loan, either in person or by mail. All applicable provisions of this chapter shall be followed in rewriting a loan, except that where an existing loan is rewritten by mail RCW 19.60.020(1) (a) and (g) shall not apply.