h. The appropriate supervising and examining department shall refuse registration of new pawnshops the owner(s) of which owned another pawnshop which closed or ceased operations without paying previously assessed penalties.

Secs. 4163P - 4170P (Reserved)

K. INTERNAL CONTROL

Sec. 4171P Safekeeping of Pawns and Records and Insurance of Office Building Pawns must be kept inside the safe or concrete vault; however, bulky pawns may be placed outside the safe or vault but within the pawnshop premises.

Vital records must be kept inside the safe or vault when not in use. Other pawnshop records/documents may be placed in filing cabinets/shelves outside the vault or safe but within the pawnshop premises.

The office building/premises and all pawns of the pawnshop, except those which are kept inside a fireproof vault, must be insured against fire.

Sec. 4172P Separation of Pawnshop Business from Other Businesses. Any person or entity engaged in the pawnshop business and, at the same time, engaged in other businesses not directly related nor incidental to the business of a pawnshop, shall keep such businesses distinct and separate from the pawnshop operation.

Secs. 4173P-4180P (Reserved)

L. MISCELLANEOUS PROVISIONS

Sec. 4181P Business Name. No person or entity shall advertise or hold itself out as being engaged in pawnshop operations or use in connection with its business title the words pawnshop, pawnbroker, pawnbrokerage, or words of similar import, or transact in any

§§ 4162P.3 - 4199P 96.12.31

manner the business of a pawnshop without having first complied with the provisions of P.D. No. 114 and of these regulations.

Sec. 4182P Closing or Transfer of Business No pawnshop shall close or transfer its place of business within three (3) months following the maturity of any loan or pledge, or before any pawn shall have been sold or disposed of as provided for under existing regulations.

Any pawnshop may transfer its place of business from one location to another within the territorial limits of the city or municipality upon compliance with the following requirements:

a. Notice of transfer shall be published in English and in Pilipino or in the local dialect in two (2) daily newspapers of general circulation in the city or municipality where the pawnshop is closing business, and posted in a conspicuous place in the premises to be vacated and to be transferred to;

b. The notice shall be published for at least three (3) consecutive days, the last day of which shall be five (5) days before the actual transfer; and

C. Notice shall contain the following information:

(1) Date of transfer;

(2) Address of the premises to be

vacated; and

(3) Address of the premises to which the pawnshop intends to transfer.

In remote areas where newpapers are not available, the publication shall be complied with by posting notices at the city hall or municipal building of the city or municipality where the pawnshop has its place of business.

Secs. 4183P - 4198P (Reserved)

Sec. 4199P General Provision on Sanctions Any violation of the provisions of this Part shall be subject to Section 18 of P.D. No. 114.

P Regulations

§§ 4301P- 4322P.1 96.12.31

A. LOANS IN GENERAL

Section 4301P Loan Limits. Pawnshops may grant such amount of loans as may be agreed upon between the parties: Provided, That the amount of a loan shall in no case be less than thirty percent (30%) of the appraised value of the security offered for the loan, unless the pawner manifests in writing that he is applying for a lesser amount. Pawnshops shall not under-appraise the security offered for the loan for the purpose of defeating the restriction prescribed by this Section.

Sec. 4302P Interest and Other Charges. The rate of interest, including commissions, premiums, fees and other charges, on any loan or forbearance of money extended by a pawnshop shall not be subject to any ceiling.

No pawnshop shall collect interest on loans in advance for a period of more than one (1) year.

Sec. 4303P Past Due Accounts; Renewal/ Redemption of Pawns. A loan may be renewed for such amount and period as may be agreed upon between the pawnshop and the pawner, subject to the same conditions as are provided in this Part for new loans.

A pawner who fails to pay or renew his obligation with a pawnshop on the date it falls due shall have ninety (90) days from the date of maturity of the loan within which to redeem the pawn by paying the principal amount of the loan plus the amount of interest that shall have accrued thereon. The amount of interest due and payable after the maturity date of the loan shall be computed upon redemption based on the sum of the principal loan and interest earned as of the date of

P Regulations §§ 4322P.1 - 4324P 96.12.31

ticket, prescribed for pawnshops pursuant to the requirements of P.D. No. 114, and the terms and conditions on the reverse side thereof, are prescribed in Appendices P-4 and P-4-a. Suplusage data shall be avoided.

Additional terms and conditions which pawnshops may wish to incorporate shall be subject to prior approval by the appropriate supervising and examining department of the

BSP.

Pawn tickets shall not be smaller than 8" x 5".

Pawn tickets shall at least be in duplicate. The first copy shall contain the word "Original" and the second copy shall be marked "Duplicate".

Pawn tickets shall be serially numbered. Pawnshops may choose the color and quality of the paper used as pawn ticket.

§ 4322P.2 Sanctions. Any pawnshop which violates or fails to comply with the requirements of Subsec. 4322P.1 shall pay a fine of P500 and shall be liable for such other administrative sanctions as the BSP may impose. The owner, partner, manager, or officer-in-charge of the pawnshop responsible for the violation or non-compliance shall be jointly liable with the pawnshop.

Sec. 4323P Reminder to Pawner; Notice to the Public. On or before the expiration of the ninety (90)-day grace period allowed in Sec. 4303P, the pawnshop shall duly notify the pawner in writing that the pawn shall be sold or otherwise disposed of in the event that the pawner fails to redeem the pawn within the ninety (90)-day grace period, specifying in the same notification the date, hour and place where the sale shall take place. If upon the expiration of the ninety (90)-day grace period, the pawner fails to redeem his pawn, the pawnshop may sell or

dispose of the pawn only after it has published a notice of public auction of unredeemed articles held as security for loans in at least two (2) newspapers circulated in the city or municipality where the pawnshop has its place of business, six (6) days prior to the date set for the public auction.

The notice shall be in English and in Pilipino or in the local dialect and shall contain the following:

a. Name and address of the owner of the pawnshop; and

b. Date and hour of the auction sale.

In remote areas where newspapers are neither published nor circulated, the publication shall be complied with by posting notices at the city hall or municipal building of the city or municipality and in two (2) other conspicuous public places where the pawnshop has its place of business.

Sec. 4324P Public Auction of Pawns. No pawnshop shall sell or otherwise dispose of any article or thing received as security for a loan except by public auction at any of the following places:

a. Pawnshop's place of business; or b. Any public place within the territorial limits of the municipality or city where the pawnshop conducts its business.

The auction shall be conducted under the control and direction of a duly licensed auctioneer. In cities and municipalities where there is no duly licensed auctioneer, the public auction may be conducted by a notary public of the city or province where the pawnshop has its place of business.

The Auction Sheet/Book containing entries of auctioned pawned articles duly signed by the auctioneer or notary public under oath shall be maintained by the pawnshop.

P Regulations