A BILL TO BE ENTITLED AN ACT TO ALLOW NONRECOURSE TITLE PLEDGE TRANSACTIONS INVOLVING MOTOR VEHICLES.
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.
© 2021 School of Government The University of North Carolina at Chapel Hill
This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.