---
kind: "section"
citation: "25 C.F.R. § 141.38"
title: "25"
number: "141.38"
heading: "Pawn loans, period, notice and sale."
url: "https://uscodex.org/cfr/25/141.38"
---

# §141.38. Pawn loans, period, notice and sale.

- (a) The proceeds of all loans secured by pawn and for which a finance charge is imposed shall be paid only in cash or with a fully negotiable check.
- (b) The period of all such loans shall be no less than twelve (12) months, subject to the provisions of [paragraph (c)](#c).
- (c) Thirty (30) days prior to the end of the loan period the pledgee may make a declaration of intention to proceed with sale of the pawned item by sending notice of intent to the pledgor.
- (d) The notice required in [paragraph (c)](#c) of this section shall be sent to the pledgor and proof of delivery obtained and shall contain a description of the item pawned, a statement of the principal and finance charge owed, a statement of the intention to sell, the date of the sale, and the procedure for redemption.
- (e) Nothing in this section requires the business owner to proceed with notice and sale if the business owner desires to hold the pawn for a period longer than the loan period stated in the original agreement.
- (f) Unless notice is given under [paragraph (c)](#c) of this section, or the loan is refinanced under the provisions of [§ 141.41](/cfr/25/141.41.md), no finance charge may be imposed for the time the loan remains unpaid after the end of the loan period stated on the pawn ticket.

## Notes

### Authority

Authority: 5 U.S.C. 301; 25 U.S.C. 2 and 9; and Sec. 701, Pub. L. 114-74, 129 Stat. 599, unless otherwise noted.

### Source

Source: 40 FR 39835, Aug. 29, 1975, unless otherwise noted. Redesignated at 47 FR 13327, Mar. 30, 1982.