FINANCIAL CODE
SECTION 22200-22204

22200. "Charges" include the aggregate interest, fees, bonuses,
commissions, brokerage, discounts, expenses, and other forms of costs
charged, contracted for, or received by a licensee or any other
person in connection with the investigating, arranging, negotiating,
procuring, guaranteeing, making, servicing, collecting, and enforcing
of a loan or forbearance of money, credit, goods, or things in
action, or any other service rendered.

22201. "Charges" include any profit or advantage of any kind that a
licensee may contract for, collect, receive, or obtain by a
collateral sale, purchase, or agreement, in connection with
negotiating, arranging, making, or otherwise in connection with any
loan.

22202. "Charges" do not include any of the following:
(a) Commissions received as a licensed insurance agent or broker
in connection with insurance written as provided in Section 22313.
(b) Amounts not in excess of the amounts specified in subdivision
(c) of Section 3068 of the Civil Code paid to holders of possessory
liens, imposed pursuant to Chapter 6.5 (commencing with Section 3067)
of Title 14 of Part 4 of Division 3 of the Civil Code, to release
motor vehicles that secure loans subject to this division.
(c) Court costs, excluding attorney's fees, incurred in a suit and
recovered against a debtor who defaults on his or her loan.
(d) Fees paid to a licensee for the privilege of participating in
an open-end credit program, which fees are to cover administrative
costs and are imposed upon executing the open-end loan agreement and
on annual renewal dates or anniversary dates thereafter.
(e) Amounts received by a licensee from a seller, from whom the
borrower obtains money, goods, labor, or services on credit, in
connection with a transaction under an open-end credit program that
are paid or deducted from the loan proceeds paid to the seller at the
direction of the borrower and which are an obligation of the seller
to the licensee for the privilege of allowing the seller to
participate in the licensee's open-end credit program. Amounts
received by a licensee from a seller pursuant to this subdivision may
not exceed 6 percent of the loan proceeds paid to the seller at the
direction of the borrower.
(f) Actual and necessary fees not exceeding five hundred dollars
($500) paid in connection with the repossession of a motor vehicle to
repossession agencies licensed pursuant to Chapter 11 (commencing
with Section 7500) of Division 3 of the Business and Professions Code
provided that the licensee complies with Sections 22328 and 22329,
and actual fees paid to a licensee in conformity with Sections 26751
and 41612 of the Government Code in an amount not exceeding the
amount specified in those sections of the Government Code.
(g) Moneys paid to, and commissions and benefits received by, a
licensee for the sale of goods, services, or insurance, whether or
not the sale is in connection with a loan, that the buyer by a
separately signed authorization acknowledges is optional, if sale of
the goods, services, or insurance has been authorized pursuant to
Section 22154.

22203. "Consumer loan" means a loan, whether secured by either real
or personal property, or both, or unsecured, the proceeds of which
are intended by the borrower for use primarily for personal, family,
or household purposes. For purposes of determining whether a loan is
a consumer loan, the lender may rely on any written statement of
intended purposes signed by the borrower. The statement may be a
separate statement signed by the borrower, or may be contained in a
loan application or other document signed by the borrower. The
lender shall not be required to ascertain that the proceeds of the
loan are used in accordance with the statement of intended purposes.
Nothing in this section shall authorize the taking of real property
as security, except as specified in Section 22330.

22204. (a) In addition to the definition of consumer loan in
Section 22203, a "consumer loan" also means a loan of a principal
amount of less than five thousand dollars ($5,000), the proceeds of
which are intended by the borrower for use primarily for other than
personal, family, or household purposes.
For purposes of determining whether a loan is or is not a consumer
loan, the lender may rely on any written statement of intended
purposes signed by the borrower. The statement may be a separate
statement signed by the borrower or may be contained in a loan
application or other document signed by the borrower. The lender
shall not be required to ascertain that the proceeds of the loan are
used in accordance with the statement of intended purposes.
(b) A consumer loan under this section is a loan secured in the
manner provided for in this division if it is secured, in whole or in
part, by any lien on, security interest in, assignment of, or power
of attorney relative to income arising from the operation of a
business by the borrower, such as accounts, and chattel paper,
including the right to payment for accounts or chattel paper sold by
the borrower prior to or contemporaneously with the making of the
loan.

FINANCIAL CODE
SECTION 21200-21209

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) Two and one-half percent (21/2%) per month on that portion of
the unpaid principal balance of any loan up to, including, but not in
excess of two hundred twenty-five dollars ($225).
(2) Two percent (2%) per month on that portion of the unpaid
principal balance of the loan in excess of two hundred twenty-five
dollars ($225) up to, including, but not exceeding nine hundred
dollars ($900).
(3) One and one-half percent (11/2%) per month on that part of the
unpaid principal balance in excess of nine hundred dollars ($900) up
to and including, but not in excess of, one thousand six hundred
fifty dollars ($1,650).
(4) One percent (1%) per month on any remainder of such unpaid
principal balance in excess of one thousand six hundred fifty dollars
($1,650).
(5) A charge not exceeding one dollar ($1) a month on any loan
when the monthly charge permitted by this section would otherwise be
less than such minimum charge.
(b) One month's interest may be charged for any part of the month
in which pawned property is redeemed.

21200.1. A loan setup fee not to exceed three dollars ($3) may be
charged for each loan up to and including fifty dollars ($50). A
loan setup fee of five dollars ($5) may be charged for loans in
excess of fifty dollars ($50). Loan setup fees are in addition to
any other allowed charges.

21200.5. A pawnbroker may charge as prescribed in the following
schedule:

Schedule of Charges

(a) A charge not exceeding one dollar ($1) may be made on any loan
for not more than 30 days which does not exceed fourteen dollars and
ninety-nine cents ($14. 99).
(b) A charge not exceeding three dollars ($3) may be made on any
loan for not more than 90 days of fifteen dollars ($15) or more, but
not exceeding nineteen dollars and ninety-nine cents ($19.99).
(c) A charge not exceeding four dollars ($4) may be made on any
loan for not more than 90 days of twenty dollars ($20) or more, but
not exceeding twenty-four dollars and ninety-nine cents ($24.99).
(d) A charge not exceeding five dollars ($5) may be made on any
loan for not more than 90 days of twenty-five dollars ($25) or more,
but not exceeding thirty-nine dollars and ninety-nine cents ($39.99).

(e) A charge not exceeding six dollars ($6) may be made on any
loan for not more than 90 days of forty dollars ($40) or more, but
not exceeding forty-nine dollars and ninety-nine cents ($49.99).
(f) A charge not exceeding seven dollars and fifty cents ($7.50)
may be made on any loan for not more than 90 days on any loan of
fifty dollars ($50) or more, but not exceeding sixty-four dollars and
ninety-nine cents ($64.99).
(g) A charge not exceeding eight dollars and fifty cents ($8.50)
may be made on any loan for not more than 90 days of sixty-five
dollars ($65) or more, but not exceeding seventy-four dollars and
ninety-nine cents ($74.99).
(h) A charge not exceeding ten dollars ($10) may be made on any
loan for not more than 90 days of seventy-five dollars ($75) or more,
but not exceeding ninety-nine dollars and ninety-nine cents
($99.99).
(i) A charge not exceeding twelve dollars and fifty cents ($12.50)
may be made on any loan for not more than 90 days of one hundred
dollars ($100) or more, but not exceeding one hundred twenty-four
dollars and ninety-nine cents ($124.99).
(j) A charge not exceeding thirteen dollars and fifty cents
($13.50) may be made on any loan for not more than 90 days of one
hundred twenty-five dollars ($125) or more, but not exceeding one
hundred forty-nine dollars and ninety-nine cents ($149.99).
(k) A charge not exceeding fifteen dollars ($15) may be made on
any loan for not more than 90 days of one hundred fifty dollars
($150) or more, but not exceeding two hundred twenty-four dollars and
ninety-nine cents ($224.99).
(l) A charge not exceeding twenty dollars ($20) may be made on any
loan for not more than 90 days of two hundred twenty-five dollars
($225) or more, but not exceeding three hundred twenty-four dollars
and ninety-nine cents ($324.99).
(m) A charge not exceeding twenty-five dollars ($25) may be made
on any loan for not more than 90 days of three hundred twenty-five
dollars ($325) or more, but not exceeding four hundred forty-nine
dollars and ninety-nine cents ($449.99).
(n) A charge not exceeding thirty-five dollars ($35) may be made
on any loan for not more than 90 days of four hundred fifty dollars
($450) or more, but not exceeding five hundred ninety-nine dollars
and ninety-nine cents ($599.99).
(o) A charge not exceeding forty-five dollars ($45) may be made on
any loan for not more than 90 days of six hundred dollars ($600) or
more, but not exceeding seven hundred ninety-nine dollars and
ninety-nine cents ($799.99).
(p) A charge not exceeding fifty-five dollars ($55) may be made on
any loan for not more than 90 days of eight hundred dollars ($800)
or more, but not exceeding nine hundred ninety-nine dollars and
ninety-nine cents ($999.99).
(q) A charge not exceeding seventy dollars ($70) may be made in
any loan for not more than 90 days of one thousand dollars ($1,000)
or more, but not exceeding eleven hundred ninety-nine dollars and
ninety-nine cents ($1,199.99).
(r) A charge not exceeding eighty-five dollars ($85) may be made
on any loan for not more than 90 days of twelve hundred dollars
($1,200) or more, but not exceeding fourteen hundred ninety-nine
dollars and ninety-nine cents ($1,499.99).
(s) A charge not exceeding one hundred dollars ($100) may be made
on any loan for not more than 90 days of fifteen hundred dollars
($1,500) or more, but not exceeding seventeen hundred ninety-nine
dollars and ninety-nine cents ($1,799.99).
(t) A charge not exceeding one hundred twenty dollars ($120) may
be made on any loan for not more than 90 days of eighteen hundred
dollars ($1,800) or more, but not exceeding two thousand ninety-nine
dollars and ninety-nine cents ($2,099.99).
(u) A charge not exceeding one hundred forty dollars ($140) may be
made on any loan for not more than 90 days of twenty-one hundred
dollars ($2,100) or more, but not exceeding twenty-four hundred
ninety-nine dollars and ninety-nine cents ($2,499.99).
(v) The charge for any extension or renewal of a loan covered by
this section shall be computed in accordance with the provisions of
Section 21200.

The schedule of charges prescribed by this section shall be posted
in a place clearly visible to the general public.

21200.6. (a) In addition to other allowed charges, at the time
property is redeemed a pawnbroker may collect a handling and storage
charge for certain pawned articles. Irrespective of the duration of
the loan, the maximum amount that may be charged pursuant to this
section is in accordance with the following schedule:
(1) Five dollars ($5) for any article that cannot be contained
within one cubic foot.
(2) Ten dollars ($10) for any article that cannot be contained
within three cubic feet.
(3) Twenty dollars ($20) for any article that cannot be contained
within six cubic feet and one dollar ($1) for each additional cubic
foot in excess of six cubic feet.
(b) No storage charge is allowed for any article that can be
contained within one cubic foot.
(c) For purposes of this section, cubic feet shall be determined
by multiplying the width of an article, at its greatest width, by the
depth of an article, at its greatest depth, by the height of an
article, at its greatest height.

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 public.

21200.8. In addition to other allowed charges, a pawnbroker may
collect a processing charge of four dollars ($4) for each firearm
pawned.

21200.9. No licensed pawnbroker shall promise any seller of
tangible personal property that the seller may repurchase property
sold to the pawnbroker.

21201. 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 furnished to the borrower. The loan contract
shall provide a four-month loan period, shall set forth the loan
period and the date on which the loan is due and payable, and shall
clearly inform the borrower of his or her right to redeem the pledge
during the loan period.
Every loan contract shall contain the following notice, in at
least 8-point boldface type and circumscribed by a box, immediately
above the space for the borrower's signature:
"You may redeem the property you have pledged at any time until
the close of business on ____ (fill in date four months from date
loan begins). To redeem, you must pay the amount of the loan and the
applicable charges which have accrued through the date on which you
redeem."
Every pawnbroker shall retain in his or her possession every
article pledged to him or her for a period of four months. During
such period the borrower may redeem the articles upon payment of the
amount of the loan and the applicable charges. If the borrower and
the pawnbroker agree in writing that the pawned property may be
stored off premises, following the request for redemption of the
loan, the pawnbroker shall return the pledged property to the
consumer the next calendar day when both the pawnbroker's store and
the storage facility are open, not to exceed two business days.
If any pledged article is not redeemed during the four-month loan
period as provided herein, and the borrower and pawnbroker do not
mutually agree in writing to extend the loan period, the pawnbroker
shall notify the borrower within 30 days after expiration of the loan
period. If the pawnbroker fails to notify the borrower within 30
days after the expiration of the loan period, the pawnbroker shall
not charge interest from the day after the expiration of the 30-day
period. The pawnbroker shall notify the borrower at his or her last
known address of the termination of the loan period, by a means for
which verification of mailing or delivery of the notification can be
provided by the pawnbroker, and extending the right of redemption,
during posted business hours, for a period of 10 days from date of
mailing of that notice. The 10-day notice shall include a statement
that: "If the tenth day falls on a day when the pawnshop is closed,
the time period is extended to the next day that the pawnshop is
open."
However, the posted schedule of charges required pursuant to
Section 21200.5 shall contain a notice informing the borrower that if
he or she desires, the pawnbroker shall send the notice of
termination of the loan period by registered or certified mail with
return receipt requested, upon prepayment of the mailing costs. If
any pledged article is not redeemed within the 10-day notice period,
the pawnbroker shall become vested with all right, title, and
interest of the pledgor, or his or her assigns, to the pledged
article, to hold and dispose of as his or her own property. Any
other provision of law relating to the foreclosure and sale of
pledges shall not be applicable to any pledge the title to which is
transferred in accordance with this section. The pawnbroker shall
not sell any article of pledged property until he or she has become
vested with the title to that property pursuant to this section. The
sale of pledged property is a misdemeanor pursuant to Section 21209.

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 identification of the claimant,
fingerprinting the claimant, and having the claimant execute a
declaration under penalty of perjury.

21201.2. If the pledgor fails to redeem any pawned item during the
loan period, thereby obliging the pawnbroker to mail the notice
required under Section 21201, the pawnbroker may charge a fee of up
to three dollars ($3) for services and costs pertaining to the
preparation of the notice, in addition to any other allowed charges.

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 stored at the business premises of
the pawnbroker and adjacent to this provision, the following
disclosure shall be made: "We must return your property within two
business days if your property is stored off premises."
(b) Every pawnbroker shall display a sign at his or her premises
indicating whether or not pawned items are insured.
(c) If a pawnbroker stores pledged property at a location other
than the pawnshop, the pawnbroker shall post a conspicuous sign
stating that pawned items may be stored off premises with the consent
of the pledgor and that following the redemption of a loan, property
is required to be returned the next calendar day upon which both the
pawnbroker's store and the storage facility are open, not to exceed
two business days.
(d) Notwithstanding Section 21209, a violation of this section is
an infraction.
(e) This section shall become operative July 1, 1995.

21201.4. Charges for the first 90 days of any loan made pursuant to
the written contract required by Section 21201 shall be determined
by the application of the schedule of charges contained in Section
21200.5. Charges for any period of time following the first 90 days
of the loan shall be determined by application of the schedule of
maximum compensation contained in Section 21200.

21201.5. A pledgor may request, and a pawnbroker may consent to, a
new loan to take effect upon or at any time after the expiration of
the loan period stated in the original loan contract delivered to the
pledgor under Section 21201. The pledgor shall pay in cash or
another form acceptable to the pawnbroker all of the charges and
interest due under the original loan, and the remaining unpaid
balance of the actual amount borrowed under the original loan shall
be debited to the new loan on which the same article or articles are
pledged. The loan to which the debit is applied shall be processed
as a new loan and shall be deemed to be a new loan subject to loan
origination fees, storage fees, and other fees permitted by this
chapter, when applicable. The new loan contract required by Section
21201 shall disclose the amount of the original loan that is debited
to the new loan.

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 of interest or charges of every loan
made by him, a reasonably accurate description of the property
pledged, the name and residence address of the pledgor. Every
pawnbroker shall deliver to the pledgor a written copy of such entry.
Such written copy need not include the name and address of the
pledgor.

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 immediately upon redemption of the loan.
However, if the property is stored off the business premises of the
pawnbroker, following the redemption of the loan the property shall
be returned the next calendar day when both the pawnbroker's store
and the storage facility are open, not to exceed two business days.

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 compensation paid by the borrower to
the pawnbroker.

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 authorizing him or her to search
for personal property.
(b) Any peace officer or employee designated by the chief of
police or sheriff.
(c) Any officer holding a court order directing him or her to
examine such records or pledged property.

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 receipt for the property which
shall contain a description of the property, the reason for seizure,
and the names of the pawnbroker and the officer.

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 stolen or embezzled is
taken from a pawnbroker, the peace officer, magistrate, court, clerk,
or other person having custody of the property shall not deliver the
property to any person claiming ownership unless the provisions of
this section are complied with.
(b) (1) If any person makes a claim of ownership, the person
having custody of the property shall notify the pawnbroker.
(2) If the pawnbroker makes no claim with respect to the property
within 10 days of such notification, the property may be disposed of
as otherwise provided by law.
(c) If property alleged to have been stolen or embezzled is taken
from a pawnbroker, prior to any disposal of the property pursuant to
Section 1411 of the Penal Code, the notice to be given to the owner
and owner of a security interest pursuant to Section 1411 shall be
given to the pawnbroker. Such property shall not be disposed of
pursuant to Section 1411 until three months after such notice has
been given.
(d) A pawnbroker shall not be liable to any person for any
property seized from the pawnbroker on account of the pawnbroker's
inability to return the property to that person because of the
seizure.

21207. No pawnbroker shall receive anything in pledge from any
person who is a minor.

21208. Every pawnbroker shall report daily or on the first working
day after receipt or purchase, all descriptions of all property
received in pledge or purchased as tangible personal property, as
defined in Section 21627 of the Business and Professions Code, in
whatever quantity received, including property purchased as tangible
personal property at wholesale, tangible personal property taken in
for sale or possessed on consignment for sale, and tangible personal
property taken in trade.
If the transaction took place within the territorial limits of an
incorporated city, the report shall be submitted to the police chief
executive of the city or his or her designee, by mail unless
otherwise agreed upon by the pawnbroker and the police chief
executive or his or her designee. If the transaction took place
outside the territorial limits of an incorporated city, the report
shall be submitted to the sheriff of the county or his or her
designee, by mail unless otherwise agreed upon by the pawnbroker and
the sheriff or his or her designee.
All reports shall be on forms approved or provided at actual cost
by the Department of Justice. The police chief executive or sheriff
who receives a report on a form filed pursuant to the provisions of
this section shall daily submit a legible copy of the transactions to
the Department of Justice.

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 misdemeanor.