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;
(c)
For the amount loaned from $10.00 to $14.99 ‑ the sum of $3.00;
(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.
