2005 Regular Session
To: Banking and Financial Services
By: Representative Green
AN ACT TO AMEND SECTION 75-67-313, MISSISSIPPI CODE OF 1972, TO REVISE THE FINANCIAL RATE THAT THE PAWNBROKER MAY CHARGE FOR ALL SERVICES, EXPENSES, COST AND LOSSES OF EVERY NATURE ADVANCE IN A PAWN TRANSACTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-67-313, Mississippi Code of 1972, is amended as follows:
75-67-313. (1) A pawnbroker may contract for and receive a pawnshop charge in lieu of interest or other charges for all services, expenses, cost and losses of every nature not to exceed two percent (2%) above the prime rate as listed in the first edition of the Wall Street Journal published for each calendar year since the merger or consolidation, unless the prime rate is not published in that edition of the Wall Street Journal, in which case any reasonable determination of the prime rate on the first business day of the year in which the services, expenses, cost or losses first occurred in the pawn transaction.
(2) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under subsection (1) of this section shall be uncollectible and the pawn transaction shall void. The pawnshop charge allowed under subsection (1) of this section shall be deemed earned, due and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due and owing on the same day of the succeeding month.
SECTION 2. This act shall take effect and be in force from and after July 1, 2005.