367.040. Loans due, when--return of collateral, when--restrictions.
Loans due, when--return of collateral, when--restrictions.
367.040. 1. Every secured personal credit loan shall bedue and payable in lump sum thirty days after the date of theloan contract, or, if extended, thirty days after the date of thelast preceding extension of the loan, and if not so paid whendue, it shall, on the next day following, be in default. Thelender shall retain possession of the tangible personal propertysubjected to the security interest to secure payment of anysecured personal credit loan for a period of sixty days nextfollowing the date of default. If, during the period of sixtydays, the borrower shall pay to the lender the principal sum ofthe loan, with the loan fee or fees, and the interest due thereonto the date of payment, the lender shall thereupon deliverpossession of the tangible personal property to the borrower.But if the borrower fails, during the period of sixty days, tomake payment, then title to the tangible personal property shall,on the day following the expiration of the period of sixty days,pass to the lender, without foreclosure, and the right ofredemption by the borrower shall be forever barred.
2. A pledgor shall have no obligation to redeem pledgedgoods or make any payment on a pawn transaction.
3. Except as otherwise provided by sections 367.011 to367.060, any person properly identifying himself and presenting apawn ticket to the pawnbroker shall be presumed to be entitled toredeem the pledged goods described therein.
4. A pawnbroker shall not:
(1) Accept a pledge from a person who is under eighteenyears of age;
(2) Make any agreement requiring the personal liability of apledgor in connection with a pawn transaction;
(3) Accept any waiver, in writing or otherwise, of any rightor protection accorded a pledgor under sections 367.011 to367.060;
(4) Fail to exercise reasonable care to protect pledgedgoods from loss or damage;
(5) Fail to return pledged goods to a pledgor upon paymentof the full amount due the pawnbroker on the pawn transaction.In the event such pledged goods are lost or damaged as a resultof pawnbroker negligence while in the possession of thepawnbroker it shall be the responsibility of the pawnbroker toreplace the lost or damaged goods with like kind of merchandise.Lenders shall not be responsible for loss of pledged articles dueto acts of God, acts of war, or riots. Each lender shall employ,if reasonably available in his area, a reputable company for thepurpose of fire and theft security;
(6) Purchase or take in trade used or secondhand personalproperty unless a record is established that contains:
(a) The name, address, physical description, and thedriver's license number, military identification number,identification certificate number, or other official numbercapable of identifying the seller;
(b) A complete description of the property, including theserial number if reasonably available, or other identifyingcharacteristic; and
(c) A signed document from the seller providing that theseller has the right to sell the property.
(L. 1951 p. 281 § 4, A.L. 1965 p. 114, A.L. 1990 H.B. 1125)