A. A pawnbroker may charge or receive interest at a rate not exceeding thirteen per cent per month for the first two months and at a rate not exceeding eleven per cent per month thereafter. A pawnbroker shall prorate interest on a daily basis and shall not impose an additional charge if the pledgor agrees to pay a loan in monthly installments, except that interest for two months may be charged or received if the pledged goods are redeemed within two months of the pawn transaction.

Terms Used In Arizona Laws 44-1626

  • Loan: means advancing money on the security of pledged goods or purchasing tangible personal property on the condition that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time. See Arizona Laws 44-1621
  • Maturity date: means the date specified on the pawn ticket by which the pledged goods must be redeemed or the pawn ticket must be renewed. See Arizona Laws 44-1621
  • Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
  • Pawn ticket: means the actual executed document that records the pawn transaction and describes the conditions of the loan agreement between the pawnbroker and pledgor. See Arizona Laws 44-1621
  • Pawn transaction: means either the act between the pawnbroker and a person pledging tangible personal property or extending credit on the security of pledged goods or the act of purchasing tangible personal property with an express or implied agreement or understanding that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time, except that a good faith outright purchase of tangible personal property is not a pawn transaction. See Arizona Laws 44-1621
  • Pawnbroker: means a person who is engaged in the business of advancing money on the security of pledged goods or is engaged in the business of purchasing tangible personal property on the condition that it may be redeemed or repurchased by the seller for a fixed or variable price within a fixed or variable period of time. See Arizona Laws 44-1621
  • Pledged goods: means tangible personal property which is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of the pawnbroker's business in connection with the pawn transaction. See Arizona Laws 44-1621
  • Pledgor: means the person leaving the personal property with the pawnbroker and executing the pawn ticket. See Arizona Laws 44-1621
  • redemption: means the act of the pledgor or the pledgor's agent of retrieving and paying in full all charges and fees for the pledged goods left with the pawnshop. See Arizona Laws 44-1621
  • Reportable transaction: means any transaction conducted by a pawnbroker in which merchandise is received through a pawn, purchase, trade or consignment. See Arizona Laws 44-1621
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

B. In addition to interest charged pursuant to subsection A of this section, a pawnbroker may charge and collect at redemption or renewal the following fees:

1. A fee that does not exceed five dollars for handling each firearm.

2. If the pledgor loses the pledgor’s claim ticket, a fee that does not exceed seven dollars fifty cents.

3. An initial setup fee of not more than five dollars.

4. A storage fee that does not exceed five dollars per month or a portion of a month for each item of pledged goods, other than a vehicle as defined in section 28-101, that exceeds one cubic foot in volume.

5. A vehicle storage fee that does not exceed five dollars per day for each item of pledged goods that is a vehicle as defined in section 28-101.

6. A fee or charge equal to the amount of any fee, tax, imposition or assessment levied or imposed by any governmental agency in connection with or as a result of any reportable transaction.  The pawnbroker may collect at the time of any reportable transaction any fee, tax, imposition or assessment that relates to a reportable transaction and that is imposed by a governmental agency.

C. A pawnbroker shall not demand or require payment of a pawn ticket before the maturity date.

D. If a pawnbroker receives a copy of military orders that indicates that a pledgor has been deployed as a member of the Arizona national guard, the United States armed forces reserves or the regular component of the United States armed forces and the member is serving on federal active duty, the pawnbroker must waive any unpaid interest charges and hold the pledged goods until sixty days after the military member returns from deployment.