S.B. 262 Summary

• Maintains maximum interest rate of 5% per month on pawn loans and allows specified additional fees up to $4 per month for storage and handling.

• Extends holding period for purchased merchandise from 15 days to 25 days before disposal; preserves 72-hour holding period for pledged articles.

• Creates military service member exemption allowing pawnbrokers to waive interest and storage charges and hold property for 60 days after military personnel return from deployment if military orders are provided.

• Requires pawnbrokers to file biennial reports with the superintendent of financial institutions detailing transaction volumes, redemptions, items surrendered to law enforcement, and employee counts.

• Establishes police hold and evidentiary hold order procedures allowing law enforcement to temporarily restrict property disposal for investigations and court proceedings, with specific timeframes and documentation requirements.

• Adds provisions allowing true owners and lessors to recover misappropriated property through written notice and court action, with liability provisions for pledgors who misappropriated items.