Pawnbrokers Act 2015 · 2020 Revised Edition · Part 3 · Rights and Obligations When Goods Are Pawned
60. Pawnbroker’s liability if unable to produce goods, etc., upon redemption
Feedback & supportThis section applies where —
a pawnbroker is required under section 57 to allow a person to redeem the pledge; but(b)the pawnbroker is unable for any reason to —
produce the pledge; or
produce the pledge in the physical condition the pledge was in when the pawnbroker first took possession of the pledge.
Where the pawnbroker is unable to produce the pledge, the pawnbroker is liable to compensate the person for the value of the pledge.
pawnbroker
“pawnbroker” means a person who carries on a business of lending money on the security of pledges;
Where the pawnbroker is unable to produce the pledge in the physical condition the pledge was in when the pawnbroker first took possession of the pledge, the person may choose either of the following remedies:
pledge
“pledge” means goods that are taken into possession by a lender of money as security for the repayment of a loan.
compensation by the pawnbroker for the value of the pledge; (b)the return of the pledge, and compensation by the pawnbroker for any decrease in the value of the pledge caused by the change in physical condition.
If the person chooses the remedy in subsection (3)(a), the pledge becomes the absolute property of the pawnbroker.
For the purposes of this section, the value of the pledge is the value as determined by the valuation provided under section 48(1) when the pawnbroker first took possession of the pledge.