Michigan Laws 446.209 – Interest on loans; rate; storage charge; time of payment; computation; fee or excess charge prohibited
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Terms Used In Michigan Laws 446.209
- month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j
- Pawnbroker: means a person, corporation, or member, or members of a copartnership or firm, who loans money on deposit, or pledge of personal property, or other valuable thing, other than securities or printed evidence of indebtedness, or who deals in the purchasing of personal property or other valuable thing on condition of selling the same back again at a stipulated price. See Michigan Laws 446.203
- Personal property: All property that is not real property.
(1) A licensed pawnbroker may charge on any loan a rate of interest that does not exceed 3% 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.