§ 18-198. Loans; interest and charges; amount; term.

(a)

No pawnbroker shall contract for, charge or receive directly or indirectly on or in connection with any pawnbroker transaction any charges, whether for interest, storage, insurance, service fee, handling, compensation, consideration or expense which in the aggregate are greater than the charges provided and authorized by this article. Any other provisions of law relating to interest, storage and such charges shall not be applicable to any pawnbroker transaction made in accordance with this article.

(b)

Whenever any loan is made by a pawnbroker for which goods are received in pledge:

(1)

A charge may be added in an amount not to exceed ten percent per month or 120 percent per annum of the amount advanced to the borrower; and

(2)

The amount of the loan shall not exceed $5,000.00.

(c)

The term of any loan made under the provisions of this article shall be one month. Loans may be extended or renewed by the payment of the charges herein provided monthly. The charges authorized herein shall be deemed to be earned at the time the loan is made and shall not be subject to refund. On loans under this article, no insurance charges or any other charges of any nature whatsoever shall be permitted.

State law reference

Similar provisions, K.S.A. 16-719.