s 3 Meanings of “pawn”, “pawnbroker”, “pawner” and “pledge”, etc.
3.—(1) In this Act, unless the context otherwise requires —“business of pawnbroking” means the business of lending money on the security of pledges; “pawn” means to give possession of goods to a lender of money as security for the repayment of a loan; “pawnbroker” means a person who carries on a business of lending money on the security of pledges; “pawnbroking” means lending money on the security of a pledge; “pawner” means a person who pawns goods to a pawnbroker, whether or not the person has any title to, or is authorised to deal in, those goods; “pledge” means goods that are taken into possession by a lender of money as security for the repayment of a loan. (2) In this Act, unless the context otherwise requires, goods are taken in pawn if the goods are taken into possession by a lender of money as security for the repayment of a loan. (3) For the purposes of this Act, in determining whether a person is lending money on the security of a pledge, and whether goods have been pawned —(a) regard must be had —(i) to the substance of the transaction and not to its form or legal technicalities; and (ii) in particular, to the ordinary understanding of the person giving possession of the goods as to —(A) the nature of the transaction; and (B) the reason or basis on which possession of goods is given to the lender; (b) it does not matter that the terms of the loan transaction provide that the lender has taken possession of the goods at the request of or on behalf of the person giving possession of the goods or otherwise, so as to give the appearance that the lender does not rely on possession of the goods as security for the repayment of the loan; and (c) goods can be considered pawned, and money can be considered lent, on the security of a pledge even if the loan also gives rise to a mortgage of the goods. (4) For the purposes of this Act, the First Schedule may specify —(a) any transaction where goods are deemed or deemed not to be pawned; and (b) in respect of any transaction where goods are deemed to be pawned —(i) the person deemed to be the pawner; (ii) the sum deemed to be loaned; and (iii) the profit deemed to be taken for the loan.