Victorian Consolidated Legislation

Second-Hand Dealers and Pawnbrokers Act 1989 - SECT 23A

Return of residual equity in unredeemed goods that are sold

23A. Return of residual equity in unredeemed goods that are sold



(1) In this section-

loan means the amount of money advanced by a pawnbroker on the security of
pledged goods; loan period means the period for which the pawnbroker has
agreed to keep pawned goods as security for a loan; outstanding amount of the
loan means the sum of the loan and the accrued interest less the sum of all
payments made; pawned goods means pledged goods received by a pawnbroker in
pawn; reasonable costs of sale does not include any prescribed costs; residual
equity means the amount of the difference, if any, between the amount obtained
on the sale of pawned goods, and the total of the outstanding amount of the
loan and the reasonable costs of sale.

(2) If a pawnbroker sells unredeemed pawned goods after the expiry of the loan
period, the person who pawned the goods is entitled, for a period of 12 months
after the sale, to claim from the pawnbroker the residual equity, if any, in
respect of the goods.

(3) If-

   (a)  a pawnbroker sells unredeemed pawned goods after the expiry of the
        loan period; and

   (b)  the residual equity in respect of the goods is $10, or if another
        amount is prescribed that amount, or more-

the pawnbroker must, within 14 days after the sale, send to the person who
pawned the goods a notice in the prescribed form advising the person that the
pawned goods have been sold and that the person is entitled to claim the
residual equity from the pawnbroker within the period of 12 months after the
sale. Penalty: 20 penalty units.

(4) If-

   (a)  unredeemed pawned goods are sold by a pawnbroker after the expiry of
        the loan period; and

   (b)  within the period of 12 months after the sale, the person who pawned
        the goods demands payment of the residual equity in respect of the
        goods from the pawnbroker-

the residual equity is a debt due and may be recovered in a court of competent
jurisdiction.

(5) A pawnbroker must pay, on demand, the residual equity, if any, in respect
of pawned goods to the person who pawned the goods, if the person so requests
within the period of 12 months after the sale of the goods.

Penalty: 20 penalty units.

(6) Section 86 of the Sentencing Act 1991 applies to an offence under
subsection (5) as if non-payment of the value of the residual equity were a
loss of property as a result of the offence.

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