Pawnbrokers Act 2015 · 2020 Revised Edition · Part 3 · Rights and Obligations When Goods Are Pawned
51. Sections 48, 49 and 50 to apply, with modifications, to agreement to extend redemption period
Feedback & supportWhere the redemption period for a pledge is extended by agreement, sections 48, 49 and 50 apply as if the pledge is offered to be pawned for the first time, subject to the modifications in subsections (2) to (5).
pledge
“pledge” means goods that are taken into possession by a lender of money as security for the repayment of a loan.
The pawnbroker must cancel the original pawn ticket.
pawnbroker
“pawnbroker” means a person who carries on a business of lending money on the security of pledges;
The new pawn ticket issued by the pawnbroker must state the profit due at the date of the agreement to extend the redemption period, in addition to the particulars required under section 49(2).
pawn
“pawn” means to give possession of goods to a lender of money as security for the repayment of a loan;
The rights and obligations under the original agreement to pawn the goods are deemed to have merged in the agreement to extend the redemption period.
Where the pawnbroker fails to give a valuation in accordance with section 48(1), or purports to take any profit or charge any fee contrary to section 50(1) —
profit
“profit”, in relation to a loan secured by a pledge, includes interest on the loan;
the validity of the agreement to extend the redemption period is not thereby affected; but(b)the pawnbroker is not entitled to take any profit on the loan in respect of the extended redemption period.