Section 21201.5 Of Chapter 2. Pawnbroker Regulations From California Financial Code >> Division 8. >> Chapter 2.
21201.5
. (a) During the contractual loan period and any extension
thereof, but prior to the start of the 10-day grace period provided
in subdivision (d) of Section 21201, a pledgor may request, and a
pawnbroker may consent to, a replacement loan to take effect upon the
expiration of the loan period stated in the active loan contract
delivered to the pledgor under Section 21201 or this section.
(b) Alternatively, a pledgor may request, and a pawnbroker may
consent to, a replacement loan during the 10-day grace period
provided in subdivision (d) of Section 21201. Any such replacement
loan shall become effective on the date it is issued.
(c) All of the following shall apply to a replacement loan issued
pursuant to this section:
(1) The loan shall be processed as, and deemed to be, a new loan
subject to all other fees and charges permitted by this chapter.
(2) Before a replacement loan may be issued, the pledgor shall pay
off all outstanding charges from the prior loan then due, including
interest or any loan writing, storage, notification, or other fee
authorized in this chapter, in cash or another form acceptable to the
pawnbroker. The pledgor's payment may be delivered to the pawnbroker
by any method acceptable to the pawnbroker, including, but not
limited to, United States mail, private mail, a personal
representative, or electronic transfer. If insufficient payment is
tendered by the pledgor or is not tendered in cash or a form
acceptable to the pawnbroker, the pawnbroker shall, if commercially
reasonable, return the payment in the same manner that the payment
was delivered by the pledgor, or by another commercially reasonable
manner, within five business days, and shall include a statement
advising the pledgor the reason the payment was rejected. The
pawnbroker is under no obligation to enter into a replacement loan if
the amount is insufficient or the method of payment or form of
tender is not cash or acceptable to the pawnbroker.
(3) The unpaid balance of the prior loan shall be debited to the
replacement loan on which the same article or articles have been
pledged. The replacement loan contract shall disclose the amount of
the prior loan that is debited and shall otherwise be consistent with
Section 21201.
(4) If the pledgor requests a replacement loan in person or
electronically, the pledgor's consent to the terms of the replacement
loan shall be deemed given when he or she signs the written
replacement loan contract in person or electronically in conformity
with Section 21201.6.
(5) If the pledgor requests a replacement loan by mail or through
a personal representative, the pledgor's consent to the terms of the
replacement loan shall be deemed given when all required charges from
the prior loan then due are paid in a form acceptable to the
pawnbroker. The principal amount of a replacement loan requested by
mail or through a personal representative shall not exceed the
principal amount of the prior loan.
(6) The terms of the replacement loan shall be consistent with
this chapter on the date the replacement loan is issued.
(7) The replacement loan shall be evidenced by a written agreement
or electronic record. The pawnbroker shall mail or otherwise
transmit a copy of the written agreement or electronic record to the
pledgor within five business days following receipt of payment by
means for which verification of mailing or electronic transmittal can
be provided by the pawnbroker.