Bill Summary for H 721 (2013-2014)

Summary date: 

Apr 11 2013

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 721 (Public) Filed Wednesday, April 10, 2013
A BILL TO BE ENTITLED AN ACT TO ALLOW NONRECOURSE TITLE PLEDGE TRANSACTIONS INVOLVING MOTOR VEHICLES.
Intro. by Jeter, R. Moore.

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Bill summary

Amends Part 1, Pawnbrokers and Cash Converters, of Article 45 of GS Chapter 66. Modifies the definition of pledged goodsto include tangible personal property that is a motor vehicle subject to registration and required to have a certificate of title by the Division of Motor Vehicles (DMV). Requires that when a pledged good is a motor vehicle subject to registration requiring a certificate of title from the DMV, the certificate of title must be placed into the possession of a pawnbroker in the course of the pawnbroker's business in connection with a pawn transaction.

Provides that if pledged goods include motor vehicles as defined in this act, the interest charged by the pawnbroker for a transaction is limited to no more than20% per month and any monthly fee for services may be no more than 20% of the original principal amount of the money advanced or of the total unpaid balance due at thetime of any renewal of the agreement.

Providesadditional requirements for pawn transactions involving motor vehicles. Specifies prohibited acts for pawn transactions involving motor vehicles, including prohibiting entering into a pawn transaction in which the amount of money advanced, when combined with other outstanding balances, exceeds $5,000, and entering into a transaction with a military service member without authorization from the commander. Makes conforming changes.

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