PAWNBROKERS ACT

[RSBC 1996] CHAPTER 350

Contents

Section 1 – Definitions

1 In this Act:

"court of summary jurisdiction" means a justice who has jurisdiction under the Offence Act;

"pawnbroker" includes a person who carries on the business of taking goods and chattels in pawn;

"pawner" means a person delivering an article for pawn to a pawnbroker;

"pledge" means an article pawned with a pawnbroker;

"shop" includes dwelling house and warehouse or other place of business, or place where business is transacted.

Section 2 – Pawnbrokers

2 A person who

(a) keeps a shop for the purchase or sale of goods or chattels or for taking in goods or chattels by way of security for money advanced on them, and

(b) purchases, receives or takes in goods or chattels and pays, advances or lends on them a sum of money not more than $50, under an agreement expressed, implied or to be from the nature and character of the dealing reasonably inferred, that those goods or chattels may be afterwards redeemed or repurchased on any terms

is deemed to be carrying on the business of taking goods and chattels in pawn, and the transaction, article, payment, advance and loan is deemed a pawning, pledge and loan respectively under this Act.

Section 3 – Personal representatives

3 (1) The provisions of this Act relating to pawnbrokers extend to and include the personal representatives of deceased pawnbrokers.

(2) As an exception to subsection (1), a personal representative is not answerable for a penalty or forfeiture personally or out of his or her own estate, unless it is incurred by his or her own act or neglect.

Section 4 – Servants and agents of pawnbrokers

4 For the purposes of this Act,

(a) anything done or omitted to be done by an employee, apprentice or agent of a pawnbroker in the course of or in relation to the business of the pawnbroker is deemed to be done or omitted to be done by the pawnbroker, and

(b) anything authorized to be done by a pawnbroker may be done by the pawnbroker’s employee, apprentice or agent.

Section 5 – Assigns and personal representatives of pawners

5 (1) The rights, powers and benefits given to pawners extend to and are deemed to be given to

(a) the assigns of pawners, and

(b) the personal representatives of deceased pawners.

(2) A person representing himself or herself to a pawnbroker to be the assign or personal representative of a pawner must, if required by the pawnbroker, produce to the pawnbroker the assignment, probate, letters of administration or other instrument under which the person claims.

Section 6 – Loans not exceeding $50

6 This Act applies to the following:

(a) a loan by a pawnbroker of $10 or less;

(b) a loan by a pawnbroker of more than $10 and not more than $50, except as otherwise provided in this Act.

Section 7 – Loans exceeding $50

7 (1) Nothing in this Act applies to a loan by a pawnbroker of more than $50, to the pledge on which the loan is made or to the pawnbroker or pawner in relation to the loan or pledge.

(2) A person is not deemed to be a pawnbroker only because of the person paying, advancing or lending on any terms a sum more than $50.

Section 8 – Duty to keep books and documents

8 (1) A pawnbroker must keep and use in the pawnbroker’s business the books and documents described in Schedule 1, in the same or similar form, and must enter in them the particulars required by that Schedule and make all inquiries necessary for that purpose.

(2) If a pawnbroker fails to comply with the requirements of this section, the pawnbroker commits an offence.

Section 9 – Duty to display name and table of rates

9 (1) A pawnbroker must

(a) keep exhibited in large characters over the outer door of the pawnbroker’s shop the pawnbroker’s given name and surname, with the word "pawnbroker", and

(b) keep placed in a conspicuous part of the pawnbroker’s shop in order to be readable by a person pawning or redeeming pledges the information required by Schedule 1 to be printed on pawn tickets.

(2) If a pawnbroker fails to comply with the requirements in this section, the pawnbroker commits an offence.

Section 10 – Pawn tickets for pledges

10 (1) On taking a pledge in pawn, a pawnbroker must give a pawn ticket to the pawner.

(2) A pawnbroker must not take a pledge in pawn unless the pawner takes the pawn ticket.

Section 11 – Charges allowed

11 (1) A pawnbroker may demand and take the charges specified in Schedule 1.

(2) For a loan on a pledge, a pawnbroker must not demand or take a charge or sum other than those specified in Schedule 1.

(3) If required at the time of redemption, a pawnbroker must give a receipt for the amount of loan and profit paid to the pawnbroker.

Section 12 – Pledges redeemable for one year

12 A pledge is redeemable within 12 months from the day of pawning, exclusive of that day, and there must be added to that year of redemption 7 days of grace, within which every pledge, if not redeemed within the year of redemption, continues to be redeemable.

Section 13 – Pledges for $5 or less

13 If not redeemed within the year of redemption and days of grace, a pledge pawned for $5 or less is at the end of the days of grace the pawnbroker’s absolute property.

Section 14 – Pledges above $5

14 A pledge pawned for more than $5 continues to be redeemable until it is disposed of under this Act, even though the year of redemption and days of grace are expired.

Section 15 – Sale by auction

15 (1) When disposed of by the pawnbroker, a pledge pawned for more than $5 must be disposed of by sale by public auction, and not otherwise.

(2) The rules in Schedule 2 must be observed with reference to the sale.

Section 16 – Pawnbrokers may bid at auction

16 A pawnbroker may bid for and purchase at a sale by auction, made or purporting to be made under this Act, a pledge pawned with the pawnbroker and on the purchase the pawnbroker is the absolute owner of the pledge purchased.

Section 17 – Offences

17 If an auctioneer contravenes this Act or a Schedule to it, relating to auctioneers, or fails to do anything that the auctioneer is required to do by this Act or a Schedule to it, the auctioneer commits an offence.

Section 18 – Power to pawner to inspect sale book

18 At any time within 3 years after the auction at which a pledge pawned for more than $5 is sold, the holder of the pawn ticket may inspect the entry of the sale in the pawnbroker’s book, and in the filled up catalogue of the auction, authenticated by the signature of the auctioneer.

Section 19 – Surplus and set off

19 (1) If a pledge pawned for more than $5 is sold and appears from the pawnbroker’s book to have been sold for more than the amount of the loan and profit due at the time of sale, the pawnbroker must, on a demand made within 3 years after the sale, pay the surplus to the holder of the pawn ticket, after deducting the necessary costs and charges of the sale.

(2) If on the demand it appears from the pawnbroker’s book that the sale of a pledge or pledges has resulted in a surplus and that within 12 months before or after that sale the sale of another pledge of the same person has resulted in a deficit, the pawnbroker may set off the deficit against the surplus, and is liable to pay the balance left after the set off.

Section 20 – Offences

20 (1) A pawnbroker who, with respect to pledges for loans of more than $5, does any of the following commits an offence:

(a) does not in good faith, according to the directions of this Act, sell a pledge pawned with the pawnbroker;

(b) enters in the pawnbroker’s book a pledge as sold for less than the sum for which it was sold, or fails to enter it;

(c) refuses to permit the inspection, by a person entitled under this Act to inspection, of an entry of sale in the pawnbroker’s book or of a filled up catalogue of the auction, authenticated by auctioneer’s signature;

(d) fails without lawful excuse, proof of which is on the pawnbroker, to produce the catalogue on lawful demand;

(e) refuses to pay on demand the surplus to the person entitled to receive it.

(2) A pawnbroker who commits an offence under subsection (1) is liable on conviction to forfeit to the person aggrieved a sum of not more than $50.

Section 21 – Holder entitled to redeem pledge

21 (1) The holder of a pawn ticket is presumed to be the person entitled to redeem the pledge.

(2) Subject to this Act, a pawnbroker must, on payment of a loan and the profit on the loan, deliver the pledge to the person producing the pawn ticket, and the pawnbroker is indemnified for doing so.

Section 22 – Production of pawn ticket

22 Except as provided in this Act, a pawnbroker is not bound to deliver back a pledge unless the pawn ticket for it is delivered to the pawnbroker.

Section 23 – Liability of pawnbroker for fire

23 (1) In this section, "value of the pledge" means the amount of the loan and profit plus 25% of the amount of the loan.

(2) If a pledge is destroyed or damaged by or in consequence of fire, the pawnbroker is nevertheless liable, on application within the period during which the pledge would have been redeemable, to pay the value of the pledge, after deducting the amount of the loan and profit.

(3) A pawnbroker is entitled to insure to the extent of the value of the pledge.

Section 24 – Depreciation of pledge

24 (1) If a person entitled and offering to redeem a pledge shows to the satisfaction of a court of summary jurisdiction that the pledge has become or has been rendered of less value than it was at the time of its pawning by or through the default, neglect or willful misbehaviour of the pawnbroker, the court may, if it thinks fit, award a reasonable satisfaction to the owner of the pledge in respect of the damage.

(2) An amount awarded under subsection (1) must be

(a) deducted from the amount payable to the pawnbroker, or

(b) paid by the pawnbroker in the manner the court directs.

Section 25 – Pawners without pawn tickets

25 The following provisions have effect for protection of owners of articles pawned, and of pawners not having their pawn tickets to produce:

(a) a person claiming to be the owner of a pledge but not holding the pawn ticket, or a person claiming to be entitled to hold a pawn ticket, but alleging that it has been lost, mislaid, destroyed or stolen or fraudulently obtained from the person, may apply to the pawnbroker for a printed form of declaration, which the pawnbroker must deliver to the person;

(b) if the applicant delivers back to the pawnbroker the declaration made before a justice or a notary public by the applicant and by a person identifying the applicant, the applicant then has, as between the applicant and the pawnbroker, all the same rights and remedies as if the applicant produced the pawn ticket, but the declaration does not have that effect for that purpose unless it is made and delivered back to the pawnbroker not later than the third day after the day on which the form is delivered to the applicant by the pawnbroker exclusive of a day or days on which the pawnbroker is prohibited from carrying on business;

(c) the pawnbroker is indemnified for not delivering the pledge to a person until the expiration of the period of 3 days referred to in paragraph (b);

(d) the pawnbroker is further indemnified for delivering the pledge or otherwise acting in conformity with the declaration, unless the pawnbroker has actual or constructive notice that the declaration is fraudulent or is false in a material particular.

Section 26 – Order for delivery of pledge

26 (1) A pawnbroker who, without reasonable excuse, proof of which is on the pawnbroker, neglects or refuses to deliver a pledge to the person entitled to have delivery of it under this Act, commits an offence.

(2) If a pawnbroker is convicted of an offence under subsection (1), a court of summary jurisdiction may, if the court thinks fit, with or without imposing a penalty, order the delivery of the pledge on payment of the amount of the loan and profit.

Section 27 – Offences

27 A pawnbroker commits an offence if the pawnbroker does any of the following:

(a) takes an article in pawn from a person appearing to be under age 12 or to be intoxicated;

(b) purchases or takes in pawn or exchange a pawn ticket issued by another pawnbroker;

(c) employs an employee, apprentice or other person under age 16 to take pledges in pawn;

(d) carries on the business of a pawnbroker on a holiday, as defined by the Interpretation Act;

(e) under any pretence purchases, except at public auction, a pledge while in pawn with him or her;

(f) suffers a pledge, while in pawn with him or her, to be redeemed with a view to his or her purchasing it;

(g) makes a contract or agreement with a person pawning or offering to pawn an article, or with the owner of it for the purchase, sale or disposition of it within the time of redemption;

(h) sells or otherwise disposes of a pledge pawned with him or her, except at the time and in the manner authorized by this Act.

Section 28 – Protection of persons executing Act

28 If a person is sued or prosecuted for anything done by the person in pursuance, execution or intended execution of this Act, the person may plead generally that it was done in pursuance, execution or intended execution of this Act, and give the special matter in evidence.

Section 29 – General penalty

29 If a pawnbroker or other person commits an offence under this Act for which a specific forfeiture or penalty is not prescribed, he or she is liable on conviction to a penalty of not more than $100.

Section 30 – Application of penalties

30 Penalties recovered under this Act, not directed to be otherwise applied, may be applied, under direction of the court in which they are recovered, as follows:

(a) if the complainant is the party aggrieved, 1/2 of the penalty may be paid to the complainant;

(b) if the complainant is not the party aggrieved, there must be paid to the complainant no part or the part of the penalty the court thinks fit.

Section 31 – Compensation for frivolous complaint

31 (1) If an information or complaint of an offence under this Act is laid before a court of summary jurisdiction and is not further prosecuted, or if the information or complaint is further prosecuted but it appears to the court by which the case is heard that there was not sufficient ground for the making of the charge, the court may award compensation the court considers proper, not exceeding $25, to be paid by the informer or complainant to the party informed or complained against for that person’s loss of time and expenses in the matter.

(2) An amount awarded under subsection (1) is recoverable as a penalty under the Offence Act.

Section 32 – Penalty for compounding informations

32 If a person lodges an information for an offence alleged to have been committed under this Act by which the person was not personally aggrieved and afterwards, directly or indirectly, receives, without the permission of a court of summary jurisdiction, a sum of money or other reward for compounding, delaying or withdrawing the information, the person commits an offence.

Section 33 – Pawnbroker to produce books

33 (1) When ordered or summoned by a court of summary jurisdiction, a pawnbroker must attend before the court and produce all books and papers relating to the pawnbroker’s business that the pawnbroker is required by the court to produce.

(2) A pawnbroker who fails to do something required under subsection (1) commits an offence.

Section 34 – Contracts not void on account of offences

34 (1) If a pawnbroker is convicted of an offence under this Act, a contract of pawn or other contract made by the pawnbroker in relation to his or her business of pawnbroker is not void by reason only of that offence.

(2) If a pawnbroker is convicted of an offence under this Act, the pawnbroker does not, by reason only of that offence, lose his or her lien on or right to the pledge or to the loan and profit.

Section 35 – Power to make regulations

35 The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

Schedule 1

Forms of Books and Documents

1 – Pledge Book

1 Each page of the pledge book must indicate the name and place of business of the pawnbroker and the date of the pledge.

2 A pledge book must contain columns for the following information:

(a) the date of redemption;

(b) the profit charged;

(c) the amount of the loan;

(d) the number of the pledge in that month;

(e) the name of the pawner;

(f) the address of the pawner;

(g) the name of the owner, if the pawner is not the owner;

(h) the address of the owner;

(i) the articles pawned.

3 All entries in the last 5 columns for each pledge must be made on the day of its pawning, or within 4 hours after the end of that day.

2 – Pawn Tickets

A – For Loan of $5 or Less

Pawned with ......................... , pawnbroker ..................................... [month, day, year] by ............................, of .......................................... , for the sum of $ .................. , [item].

The following is to be printed on the ticket, on the front or back, or partly on the front and partly on the back:

The pawnbroker is entitled to charge:

For this ticket: 5¢.

For profit on each one dollar or part of one dollar lent on this pledge for not more than one calendar month: 2¢.

And so on at the same rate per calendar month.

After the first calendar month, any time not exceeding 14 days will be charged as 1/2 a month, and any time exceeding 14 days and not more than one month will be charged as one month.

This pledge must be redeemed within 12 calendar months and 7 days from the date of pledging. At the end of that time it becomes the property of the pawnbroker. If the pledge is destroyed or damaged by fire, the pawnbroker will be bound to pay the value of the pledge, after deducting the amount of the loan and profit, that value to be the amount of the loan and profit and 25% on the amount of the loan.

For profit on each one dollar in excess of $20 for not more than one calendar month: 1 1/4¢.

After the first calendar month, any time not exceeding 14 days will be charged as 1/2 a month, and any time exceeding 14 days and not more than one month will be charged as one month.

If this pledge is not redeemed within 12 calendar months and 7 days from the day of pledging, it may be sold by auction by the pawnbroker, but it may be redeemed at any time before the day of sale.

Within 3 years after sale the pawner may inspect the account of the sale in the pawnbroker’s books, on payment of 5¢, and receive any surplus produced by the sale. But deficit on sale of one pledge may be set off by the pawnbroker against surplus on another.

If the pledge is destroyed or damaged by fire, the pawnbroker will be bound to pay the value of the pledge, after deducting the amount of the loan and profit, that value to be the amount of the loan and profit and 25% on the amount of the loan.

If this ticket is lost or mislaid, the pawner should at once apply to the pawnbroker for a form of declaration to be made before a justice, or the pawnbroker will be bound to deliver the pledge to any person who produces this ticket to the pawnbroker and claims to redeem the pledge.

3 – Sale Book of Pledges for Loans of More Than $5

1 Each page of a sale book of pledges for loans of more than $5 must indicate the following:

(a) the date and place of sale;

(b) the name and place of business of the auctioneer.

2 A sale book of pledges for loans of more than $5 must contain columns for the following information:

(a) the number of the pledge as in the pledge book;

(b) the date of pawning;

(c) the name of the pawner;

(d) the amount of the loan;

(e) the amount for which the pledge sold as stated by the auctioneer.

4 – Declaration Where Pledge Claimed by Owner

Take notice, if this declaration is false the person making it is punishable as for perjury. Unless this printed form is taken before a justice and declared to and signed and delivered back to the pawnbroker not later than ..................................... [month, day, year], the articles mentioned in it will be delivered to any person producing the pawn ticket.

Canada:

Province of British Columbia:

County of .........................................

I, .................................................................... , do solemnly declare that

• the name ".............................................................." above given is my proper name

• I reside at No. ..................................... Street, in the City of ................................................... [or as the case may be]

• the article [or articles] described below is [or are] my property

• I believe it is [or they are] pledged at the shop of [name and address of pawnbroker].

• The article [or articles] above referred to is [or are]:

And I make this solemn declaration conscientiously believing it to be true, and knowing that it is of the same force and effect as if made under oath and by virtue of the Canada Evidence Act.

Declared before me at ............................................. [month, day, year].

And I, ............................................................................ , do solemnly and sincerely declare that I reside at No. ............................................. Street, in the City of ................................................. [or as the case may be], and that I know the person now making this declaration to be ..................................... , who resides at No. .................................. Street, in the City of .......................................... [or as the case may be].

And I make this solemn declaration conscientiously believing it to be true, and knowing that it is of the same force and effect as if made under oath and by virtue of the Canada Evidence Act.

Declared before me at ........................................... [month, day, year].

5 – Declaration If Pawn Ticket Lost

Take notice, if this declaration is false the person making it is punishable as for perjury. Unless this printed form is taken before a justice or a notary public and declared to and signed and delivered back to the pawnbroker not later than ........................................... [month, day, year], the articles mentioned in it will be delivered to any person producing the pawn ticket.

Canada:

Province of British Columbia:

County of .........................................

I, ................................................................... , do solemnly declare that

• the name "................................................................ " is my name

• I reside at No. ..................................... Street, in the City of ................................................... [or as the case may be]

• I pledged at the shop of ..................................................................... , pawnbroker, the article [or articles] described below, being my property, and received a pawn ticket for the same, which has since been [state shortly what has become of the pawn ticket]

• the pawn ticket has not been sold or transferred to any person by me, or by any person on my behalf.

The article [or articles] above referred to is [or are] the following:

And I make this solemn declaration conscientiously believing it to be true, and knowing that it is of the same force and effect as if made under oath and by virtue of the Canada Evidence Act.

Declared before me at ....................................... [month, day, year].

And I, ................................................................. , do solemnly and sincerely declare that I reside at No. ...................................... Street, in the City of ..................................................... [or as the case may be], and that I know the person now making this declaration to be .......................................... , who resides at No. ................................. Street, in the City of .......................................... [or as the case may be].

And I make this solemn declaration conscientiously believing it to be true, and knowing that it is of the same force and effect as if made under oath and by virtue of the Canada Evidence Act.

Declared before me at ................................................ [month, day, year].

6 – Receipt

[Date]

Received on redemption of Pledge No.

Amount of loan $

Profit $

Total $

..................................................................................

Pawnbroker

Schedule 2

Rules as to Auctions of Pledges More Than $5

1 The auctioneer must expose all pledges to public view.

2 The auctioneer must publish catalogues of the pledges, stating the following:

(a) the pawnbroker’s name and place of business;

(b) the month in which each pledge was pawned;

(c) the number of each pledge as entered at the time of pawning in the pledge book.

3 The pledges of each pawnbroker in the catalogue must be separate from any pledges of any other pawnbroker.

4 The auctioneer must insert in some public newspaper an advertisement giving notice of the sale, and stating the following:

(a) the pawnbroker’s name and place of business;

(b) the months in which the pledges were pawned.

5 The advertisement must be inserted on 2 days in the same newspaper, and the second advertisement must be inserted at least 3 clear days before the first day of sale.

6 If a pawnbroker bids at a sale, the auctioneer must not take the bidding in any other form than that in which the auctioneer takes the bids of other persons at the same sale and the auctioneer on knocking down any article to a pawnbroker must immediately declare audibly the name of the pawnbroker as purchaser.

7 The auctioneer must, within 14 days after the sale, deliver to the pawnbroker a copy of the catalogue, or of as much of it as relates to the pledges of that pawnbroker, filled up with the amounts for which the several pledges of that pawnbroker were sold, and authenticated by the signature of the auctioneer.

8 The pawnbroker must preserve the catalogue for at least 3 years after the auction.