當舖業法

This Act is enacted to achieve sound management of the pawn business and to serve as operation guidance. Matters not provided in this Act shall be governed by provisions of other laws.

The competent authority hereinafter used in this Act refers to the Ministry of the Interior at the central government level, the municipal governments at the municipal level, and the county (city) governments at the county (city) level.

1The terms hereinafter used in this Act are defined as follows:

21. Pawnshop: the company or business exclusively engaging in pawn business after obtaining a permit according to this Act.

32. Pawnbroker: the person in charge of the pawnshop and registered according to the Company Act or Business Registration Act.

43. Pledgor: a person pledging his/her property as security for a loan from a pawnshop.

54. Pawning: the act of a pledgor pledging his/her property as security to borrow money from a pawnshop and paying interest.

65. Pawn transaction: the act of a pawnshop lending money to a pledgor on the security of pledged items provided.

76. Repawn: the act of a pawnshop pledging the accepted pawned items as security for a loan from another pawnshop.

87. Redemption: the act of paying off the debt to get back the pledged items from a pawnshop.

9

1Any person, before opening the business of running a pawnshop, shall apply with an application form to the local competent authority for establishment. However, none of the pawnshop branches are allowed to be established.

2The application form prescribed in the preceding paragraph shall be specified with the following particulars:

31. The name of the company or business.

42. The name of the pawnbroker.

53. The location of the operation site and the storeroom where pledged items are stored and its security equipment.

64. Aggregate liability insurance limits and a summary of the insurance policy.

75. Registered capital.

8The name prescribed in Subparagraph 1 of the preceding paragraph shall include the word “Pawnshop.”

9The number of pawnshops approved to be established is based on the criterion that an additional pawnshop may be established each time when the local population increases by 30,000 people for the first year, and 20,000 people from the second year in the municipality, county (city) after this Act is enforced. The pawnshops whose establishment has already been approved by the competent authority prior to the enforcement of this Act, however, will not be included in the calculation.

1Any person with one of the following conditions shall not serve as the pawnbroker of a pawnshop. If he/she has already served as the pawnbroker, he/she shall certainly be relieved of the position, and the competent authority shall notify the authorities governing businesses or companies to revoke registration of the pawnbroker.

21. A person who has ever violated the provisions of the Organized Crime Prevention Act and has been finally convicted.

32. A person who has ever violated the provisions of the Anti-Corruption Act and the Money Laundering Control Act, or committed larceny, abrupt taking, robbery, kidnapping ransom, offenses relating to receiving stolen property, fraud, breach of trust, embezzlement or usury and has been finally convicted, has not served a sentence yet, has not finished serving a sentence, or has finished serving a sentence for less than five years.

43. A person who has been declared bankruptcy has not been reinstated to his rights and privileges yet.

54. A person who has been dishonored for unlawful use of negotiable instruments, and the term of such sanction has not expired yet.

65. A person used to be a pawnbroker, and the permit of the pawnshop was revoked for violation of Article 28 of this Act.

1If the permit is damaged or lost, an application shall be submitted to the local competent authority for renewal or reissuance within 15 days.

2Prior to its dissolution, discontinued operation, or after its permit is revoked, the pawnshop shall submit its permit and establishment approval to the local competent authority to be canceled.

The central competent authority shall stipulate the minimum registered capital required for a pawnshop.

1A pawnshop shall have a fixed operation site and storeroom to store pledged items. The central competent authority shall regulate the standards for establishing the abovementioned facilities.

2A pawnshop shall run its pawn business at the registered operation site and store pledged items at the registered storeroom.

3In the event that the storeroom used to store pledged items as prescribed in the preceding paragraph needs to be added to meet the operational needs, the additional ones may be built with prior reporting to the local competent authority.

4A pawnbroker shall perform the duties of the due care of a good administrator in managing the pledged items and shall not repawn them.

5A pawnbroker shall perform the duties of the due care of a good administrator in managing the pledged items and shall not repawn them.

1Any pawnshop, after having started its business operation, planning to change the following particulars shall apply to the local competent authority for permit change:

21. The name of the company or business.

32. The name of the pawnbroker.

43. The location of the operation site and the storeroom where pledged items are stored and its security equipment.

54. Registered capital.

1When a pawnshop plans to suspend its business for over a month, it shall submit the suspension application to the local competent authority for review. The pawnshop shall follow similar procedures before resumption.

2In the event that there are pledged items yet to be redeemed prior to the suspension of the business prescribed in the preceding paragraph, the pawnshop shall inform the pledgors five days prior to the suspension. It shall not charge interest during the suspension period and shall postpone the maturity date for as long as the suspension period.

1A pawnshop shall reveal the following information in a conspicuous place at its operation site:

21. Pawnshop permit.

32. The name of the pawnbroker or the clerk.

43. Interest rate shown as an annual rate.

54. Interest rate formula.

65. Business hours.

7The annual interest rate prescribed in Subparagraph 3 of the preceding paragraph shall not exceed 30%.

1A pawnshop shall obtain liability insurance from insurance companies approved by the Financial Supervisory Commission. The aggregate limits of insurance shall be determined jointly by the central competent authority and the Financial Supervisory Commission.

2The liability insurance prescribed in the preceding paragraph shall be obtained prior to the commencement of the business operation and shall continuously remain effective.

1When a pawnshop experiences force majeure disasters that result in damage or destruction to pledged items, it shall inform pledgors immediately, prepare a detailed list of the affected items, and notify the local competent authority, the insurance company, and the local pawnshop association for a joint inspection. The remaining pledged items shall be sealed and handled according to an agreement reached by the affected parties.

2If the pawnshop and the pledgor have agreed that the pledgor shall waive his/her right to claim damages when pledged items are destroyed, damaged, or stolen for reasons attributable to the pledgor himself/herself, the agreement shall be void.

1A pawnshop shall prepare a pawn ticket that must specify the following particulars:

21. The name, quantity, and characteristics of the pledged items.

32. The amount of money advanced.

43. The interest rate and required cost.

54. Maturity date.

65. The name of the pledger and the number of his/her National ID, driver’s license, passport, or Alien Resident Certificate.

76. The permit number and address of the pawnshop.

87. Procedures to be followed in case of losing this pawn thicket.

98. Contents of the liability insurance policy.

109. Other requirements imposed by the competent authorities.

1When a pawnshop accepts an item to be pawned, it shall examine the pledgor’s identity document and have the pledgor affix his/her fingerprint on the duplicate copy of the pawn ticket.

2The fingerprint prescribed in the preceding paragraph shall be a clear rolled fingerprint of the left thumb. If the left thumb is incomplete, another digit of either hand shall be affixed, and the name of the finger shall be specified. However, the pledgor with no digits is exempted.

1No pawnshop shall accept the following items:

21. Contraband.

32. Securities or various deposit certificates.

43. Institutional seals or other property managed by government agencies.

54. Police and military uniforms and other accessories.

65. Government-issued licenses and certificates and personal identity documents.

76. Other items whose trading is prohibited and restricted by the government.

8When a pawnshop finds any items prescribed in Subparagraphs 1, 3, 4, and 6 of the preceding paragraph or other illegally possessed items, it shall report its findings to the local police authority.

No pawnshop shall accept items from people without legal or with limited legal capacity. This requirement shall not apply to people with limited legal capacity if they have consent from the legal representatives.

1A person with a pawn ticket may redeem the pledged items anytime during business hours before the maturity date. To redeem a pledged item, the pawn ticket shall be returned to the pawnshop, and the pledgor shall indicate on the duplicate ticket that the item has been redeemed.

2The pledgor shall go through the procedures for reporting a lost or damaged pawn ticket to the original pawnshop. If the pledgor fails to do so, the pawnshop will not be liable for compensation in the event that a third party with the pawn ticket has redeemed the pledged items.

When the pledged items are redeemed within a month, the interest and fees shall be charged for one month. There will be no charge for the first five days after one month. When it is more than five days, an additional half month of interest and fees will be charged. When it is more than fifteen days, an additional month of interest and fees will be charged. Interest and fees, however, shall not be deducted in advance.

1A pawnshop shall not collect expense other than interest and storage fees.

2The storage fees prescribed in the preceding paragraph shall not exceed 5% of the amount of money advanced.

The maturity period given by a pawnshop shall not be shorter than three months. When it is shorter than three months, it shall be regarded as three months. It is allowed to redeem the pawned item or pay off the interest to extend the maturity date within five days after the loan period expires. If the pledged item is not redeemed or the expiration date is not extended within five days after its original maturity date, the ownership of the pledged item shall be transferred to the pawnshop.

A pawnshop shall prepare its registration book that records information such as the pledgors and pawned items. Two photocopies of the book shall be filed to the competent authority for recordation every two weeks. When pawned items are five days past the maturity date and are not redeemed, or the maturity date has not been extended, a detailed list of unredeemed items shall be made and sent to the competent authority for inspection. The unredeemed items may be auctioned or displayed for sale.

The local police authority may inspect pawnshops if it is considered necessary.

When a pawnshop suspects the identity of the pledgor or the item to be pawned, it shall refuse to accept the item. It shall report it immediately to the nearby police authority.

When a pawnshop gets the information of lost property notification from the police authority, it shall carefully check it against the pawned items in stock. In case of finding similar or suspicious ones, it shall notify the nearest police authority immediately.

1When a pledged item accepted by the pawnbroker or the clerk of a pawnshop in accordance with the provisions of this Act is found as stolen property, the owner may redeem it with the original amount of money advanced.

2When a pledged item accepted by the pawnbroker or the clerk of a pawnshop not in accordance with the provisions of this Act is found as stolen property, it shall be returned to the original owner free of charge. If the original owner has already redeemed the item, the money he/she has paid shall be refunded.

When a pawnshop is run without a permit or with a revoked permit or established branches without permission, suspension of the business shall be ordered, and the pawnshop shall be fined between NT$ 30,000 and NT$ 150,000.

When a pawnshop violates the provisions of Article 22, it shall be fined between NT$ 20,000 and NT$ 100,000 and shall remedy the violation by the given deadline. Having failed to do so, it shall be subject to continuous fines and, if necessary, suspension of business operation or revocation of the permit.

Pawnshops circumventing, obstructing, or refusing inspection as provided in Article 23 shall be fined between NT$ 20,000 and NT$ 100,000.

Pawnshops that violate Articles 5, 15, or 16 shall be fined between NT$ 20,000 and NT$ 100,000.

1Pawnshops with the following conditions shall be fined between NT$ 10,000 and NT$ 50,000 and shall remedy the violation by the given deadline. Having failed to do so, it shall be subject to continuous fines.

21. Violation of the provisions in Paragraph 1 of Article 8 for not establishing a fixed operation site or storeroom or violation of Article 9 for not applying for a change in permit.

32. Violation of the provisions in Article 11 for not posting the said information.

43. Violation of the provisions in Paragraph 2 of Article 12 for not remaining an insurance policy effective.

54. Violation of the provisions in Article 14 for failing to prepare pawn tickets or using an improper format.

1Pawnshops with any of the following conditions shall be subject to a fine between NT$ 10,000 and NT$ 50,000.

21. Violation of the provisions in Paragraph 4 of Article 8, Paragraph 2 of Article 10, or Articles 19 to 21.

32. Violation of the provisions in Paragraph 1 of Article 13 for failure to inform the pledgor, to prepare a detailed list, to notify the relevant institutions for a joint inspection, or to seal remaining pledged items.

1Pawnshops with any of the following conditions shall be subject to a fine between NT$ 6,000 and NT$ 30,000

21. Violation of the provisions in Paragraph 1 of Article 6 for failure to apply for permit renewal or re-issuance.

32. Violation of the provisions in Paragraph 1 of Article 10 for failure to apply for review prior to suspension or resumption of the business.

1The local competent authority shall administer the fines prescribed in this Act.

2Failing to pay the fines as prescribed in the preceding paragraph after having been imposed a deadline, the pawnshop shall compulsorily submit to enforcement of the unpaid fines in accordance with the law.

1Pawnshops that have been licensed or have registered prior to the enforcement of this Act shall prepare the original permit to apply to the local competent authority for permit renewal within two years after this Act comes into force. Their registered capital and liability insurance shall comply with the provisions as prescribed in this Act.

2Failing to comply with the provisions prescribed in the preceding paragraph shall be subject to revocation of the permit previously issued.

3Provisions promulgated herein in this Act shall apply mutatis mutandis to public pawn institutions that have been established by respective municipal governments prior to the effective date of this Act. Any additional establishment of public pawn institutions shall not be allowed.

4The public pawn institutions, as prescribed in the preceding paragraph, shall be responsible for all profits and losses and shall not cover the costs of personnel, business operation, and rental costs with government budgets.

The central competent authority shall determine the fees for issuance, renewal and re-issuance of a pawnshop’s permit.

The formats of various documents or forms prescribed herein in this Act must be regulated by the central competent authority.

1This Act shall come into force from the date of promulgation.

2The effective date of the amended articles of this Act on November 7, 2008 shall be determined by the Executive Yuan.