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SB 348 - Interest & Usury - clarifica- tion regarding pawnbrokers

Lee, Daniel W. (29th)	Kemp, Rene' D (3rd)

Status Summary	SC:	Judy	HC:	Judy	FR:	01/25/00	LA:	05/01/00	Signed by Governor

First Reader Summary

A bill to be entitled an Act to amend Article 1 of Chapter 4 of Title 7 of the Official Code of Georgia Annotated, relating to interest and usury, so as to change provisions regarding criminal penalty for excessive interest to ensure such penalties do not apply to pawnbrokers; to provide for related matters; to repeal conflicting laws; and for other purposes.

Code Sections - 7-4-18

SB 348 00                                          LC 24 1584 
 
      SENATE BILL 348 
 
      By:  Senators Lee of the 29th and Kemp of the 3rd 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend Article 1 of Chapter 4 of Title 7 of the Official 
  1- 2  Code of Georgia Annotated, relating to interest and usury, 
  1- 3  so as to change provisions regarding criminal penalty for 
  1- 4  excessive interest to ensure such penalties do not apply to 
  1- 5  pawnbrokers; to provide for related matters; to repeal 
  1- 6  conflicting laws; and for other purposes. 
 
  1- 7       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1- 8                           SECTION 1. 
 
  1- 9  Article 1 of Chapter 4 of Title 7 of the Official Code of 
  1-10  Georgia Annotated, relating to interest and usury, is 
  1-11  amended by striking Code Section 7-4-18, relating to 
  1-12  criminal penalty for excessive interest, and inserting in 
  1-13  lieu thereof a new Code section to read as follows: 
 
  1-14    "7-4-18. 
 
  1-15    (a) Any person, company, or corporation who shall reserve, 
  1-16    charge, or take for any loan or advance of money, or 
  1-17    forbearance to enforce the collection of any sum of money, 
  1-18    any rate of interest greater than 5 percent per month, 
  1-19    either directly or indirectly, by way of commission for 
  1-20    advances, discount, exchange, or the purchase of salary or 
  1-21    wages; by notarial or other fees; or by any contract, 
  1-22    contrivance, or device whatsoever shall be guilty of a 
  1-23    misdemeanor; provided, however, that regularly licensed 
  1-24    pawnbrokers, as defined in Code Section 44-12-130, where 
  1-25    personal property is taken into their actual physical 
  1-26    possession and stored by them, are limited in the amount 
  1-27    of interest they may charge, in addition to said rate of 
  1-28    interest, not exceeding 25› at the time the property is 
  1-29    first taken possession of by them for the storage of said 
  1-30    property only by the limitations set forth in Code Section 
  1-31    44-12-131. 
 
  1-32    (b) This Code section shall not be construed as repealing 
  1-33    or impairing the usury laws now existing but shall be 
  1-34    construed as being cumulative thereof. 
 
 
                                 -1- 
 
 
 
  2- 1    (c) Nothing contained in Code Section 7-4-2 or 7-4-3 shall 
  2- 2    be construed to amend or modify the provisions of this 
  2- 3    Code section." 
 
  2- 4                           SECTION 2. 
 
  2- 5  All laws and parts of laws in conflict with this Act are 
  2- 6  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -2-