SENATE BILL NO. 369

June 12, 2019, Introduced by Senator LUCIDO and referred to the Committee on Regulatory Reform.

"An act to regulate and license pawnbrokers that conduct business in this state; to provide for the disposition of allegedly misappropriated property in the possession of pawnbrokers; to provide remedies and prescribe penalties; and to provide for the powers and duties of certain local governmental units and state agencies,"

by amending section 9 (MCL 446.209), as amended by 2018 PA 345.

the people of the state of michigan enact:

Sec. 9. (1) A licensed pawnbroker may charge on any loan a rate of interest that does not exceed 3% 4% per month and is not required to accept any interest less than 50 cents on a single loan. A pawnbroker may also charge $3.00 per month or fraction of a month for the storage of unencumbered personal property under any single pledge or pawn.

(2) A pawnbroker or the pawnbroker's agent or employee shall not charge or receive interest on a loan that exceeds the amounts established in this act.

(3) Interest on a loan is not payable in advance and shall be computed on unpaid monthly balances without compounding.

(4) A pawnbroker is not entitled to any examination fee and shall not make any charge that exceeds the amounts established in this act.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.