DIVISION 8. PAWNBROKERS [21000. - 21413.]
Division 8 enacted by Stats. 1951, Ch. 364.
§§ 21000–21413 · 51 sections
CHAPTER 1. General Provisions §§ 21000–21051 · 7 sections
ARTICLE 1. Definitions §§ 21000–21003 · 5 sections
- § 21000 Every person engaged in the business of receiving goods, including motor vehicles, in pledge as security for a loan is a pawnbroker within the meaning of this…
- § 21000.7 As used in this division “receiving goods as security for a loan” does not include a good faith purchase of goods.
- § 21001 “Compensation” includes expenses, interest, disbursements, storage charges, and all other charges of any nature in connection with a loan or forbearance.
- § 21002 (a) As used in this division, “pledged property” is property held as security for a loan, the title to which remains with the pledgor and has not passed to the…
- § 21003 For purposes of this division, the term “month” means a period of time consisting of 30 consecutive calendar days.
ARTICLE 2. Exceptions to This Division §§ 21050–21051 · 2 sections
- § 21050 This division does not apply to any of the following: (a) Any corporation organized for the purpose of securing credit from any federal intermediate credit…
- § 21051 (a) The limitations with respect to rates and charges set forth in Sections 21200 and 21200.5 do not apply to any loan of a bona fide principal amount of two…
CHAPTER 2. Pawnbroker Regulations §§ 21200–21209 · 25 sections
- § 21200 (a) Except as otherwise provided in this chapter, no pawnbroker shall charge or receive compensation at a rate exceeding the sum of the following: (1) Three…
- § 21200.1 A loan setup fee of seven dollars and fifty cents ($7.50) or 3.5 percent, whichever is greater, may be charged for each loan. However, the maximum loan setup…
- § 21200.5 A pawnbroker may charge as prescribed in the following schedule: Schedule of Charges (a) A charge not exceeding three dollars ($3) may be made on any loan for…
- § 21200.6 (a) In addition to other allowed charges, at the time property is redeemed or a replacement loan is issued pursuant to Section 21201.5, the pawnbroker may…
- § 21200.7 The maximum charge of compensation charged by a pawnbroker pursuant to the authority of Section 21200 shall be posted in a place clearly visible to the general…
- § 21200.8 In addition to other allowed charges, a pawnbroker may collect a processing charge of twenty dollars ($20) for each firearm pawned.
- § 21200.9 In addition to other allowed charges, a pawnbroker may collect a remote transaction fee, if the pledgor elects to request a replacement loan or to redeem a…
- § 21200.10 No licensed pawnbroker shall promise any seller of tangible personal property that the seller may repurchase property sold to the pawnbroker.
- § 21201 (a) Every loan made by a pawnbroker for which goods are received in pledge as security shall be evidenced by a written contract, a copy of which shall be…
- § 21201.1 Whenever a pledger, or his or her assignee, loses a pawn ticket, a fee of not to exceed ten dollars ($10) may be charged for services of verifying the…
- § 21201.2 If the pledgor fails to redeem any pawned item during the loan period, thereby obliging the pawnbroker to mail or electronically transmit the notice required…
- § 21201.3 (a) The written contract required pursuant to Section 21201 shall contain a provision in 8-point type stating whether the item or items pledged are to be…
- § 21201.4 Charges for the first three months of any loan made pursuant to the written contract required by Section 21201 or 21201.5 shall be determined by the…
- § 21201.5 (a) During the contractual loan period and any extension thereof, but prior to the start of the 10-day grace period provided in subdivision (d) of Section…
- § 21201.6 The requirement for a written contract signed by the pledgor as set forth in Section 21201.5 may be met electronically if all of the following conditions are…
- § 21202 Every pawnbroker shall enter at the time of the transaction, in records of loans and pledges kept by him for that purpose, the date, duration, amount, and rate…
- § 21203 Any property held in pawn which is not subject to a hold pursuant to Section 21647 of the Business and Professions Code shall be returned to the pledgor…
- § 21204 Every pawnbroker, upon redemption of a loan contract, shall provide the borrower with a receipt that correctly states in detail all of the fees, charges, and…
- § 21205 Representatives of the pawnbroker industry shall poll their members annually to gather data relating to the current financial condition of the California pawn…
- § 21206 Every pawnbroker shall produce his or her records of loans and all pledged property, for inspection by the following persons: (a) Any officer holding a warrant…
- § 21206.7 Whenever any property is taken from a pawnbroker by a peace officer which is alleged to be stolen property, the police officer shall give the pawnbroker a…
- § 21206.8 (a) Notwithstanding the provisions of Chapter 12 (commencing with Section 1407) of Title 10 of Part 2 of the Penal Code, whenever property alleged to have been…
- § 21207 No pawnbroker shall receive anything in pledge from any person who is a minor.
- § 21208 A pawnbroker shall comply with the reporting requirements imposed on secondhand dealers under Article 4 (commencing with Section 21625) of Chapter 9 of…
- § 21209 The violation of any provision of this chapter under circumstances where a person knows or should have known that a violation was being committed is a…
CHAPTER 3. Licensure §§ 21300–21307 · 11 sections
- § 21300 (a) The chief of police, the sheriff, or, where appropriate, the police commission shall accept an application for and grant a license permitting the licensee…
- § 21300.1 It is unlawful for any person who is not duly licensed under this section to act as a pawnbroker or represent himself, herself, or a business entity to be a…
- § 21301 (a) A license granted pursuant to Section 21300 shall be renewable the second year from the date of issue, and every other year thereafter, upon the filing of…
- § 21301.1 It is unlawful for any person to advertise his or her services as a pawnbroker, or to use any words or parts of words in any advertisements that connote a…
- § 21302 The district attorney or the Attorney General, in the name of the people of the State of California, may bring an action to enjoin the violation or the…
- § 21303 (a) As a condition precedent to the issuance or renewal of a pawnbroker’s license the applicant shall file a pawnbroker’s two-year nonrevokable surety bond…
- § 21303.5 (a) On and after January 1, 2026, as a condition precedent to issuing a new pawnbroker’s license, the applicant shall complete at least eight hours of…
- § 21304 (a) As a condition precedent to the issuing of a pawnbroker’s license, the applicant shall file with the issuing authority a financial statement confirming…
- § 21305 A license issued pursuant to this chapter shall not be transferred or assigned.
- § 21306 A pawnbroker licensed under Section 21300 is exempt from the licensing requirements under Sections 21641 and 21642 of the Business and Professions Code and may…
- § 21307 Except as otherwise specifically provided, the violation of any provision of this chapter under circumstances where a person knows or should have known that a…
CHAPTER 4. Pawnbroker Education Act §§ 21400–21413 · 8 sections
- § 21400 This chapter shall be known, and may be cited, as the Pawnbroker Education Act.
- § 21401 The Legislature finds and declares all of the following: (a) Pawnbroker businesses provide a valuable source of short-term credit for economically vulnerable…
- § 21403 (a) The California Pawnbroker Education Council is hereby established to carry out the responsibilities and duties described in this chapter. (b) The council…
- § 21405 (a) The council shall, on or before January 1, 2026, develop and establish a standard course and curriculum in pawnbroker transactions that shall include at…
- § 21407 (a) Individuals, entities, agencies, and associations that propose to offer educational courses that satisfy the prelicensing or continuing education…
- § 21409 (a) Beginning on January 1, 2026, the council shall issue a certificate to an applicant for a pawnbroker license, or a licensee applying for renewal of a…
- § 21411 Nothing in this chapter authorizes the council to approve, deny, revoke, or suspend a license issued pursuant to Section 21300.
- § 21413 This chapter shall remain in effect only until January 1, 2029, and as of that date is repealed.