The Pawn Broking (Prohibition) Act

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CHAPTER 175
THE PAWNBROKING (PROHIBITION) ACT
[PRINCIPAL LEGISLATION]
Arrangement of Sections
Section Title
1. Short title.
2. Interpretation and exclusion.
3. Pawnbroking prohibited.
4. Existing pledges.
5. Modifications of powers of pawnbrokers and disposal of pledges.
6. Repeal of R.L. Cap. 226.

lusion.
3. Pawnbroking prohibited.
4. Existing pledges.
5. Modifications of powers of pawnbrokers and disposal of pledges.
6. Repeal of R.L. Cap. 226.

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1. This Act may be cited as the Pawnbroking (Prohibition) Act. 2.–(1) In this Act, unless the context otherwise requires-
“business of a pawnbroker” means the business of taking
goods in pawn as security for a loan of money or the grant
of credit facilities, and includes the business of a keeper
of a shop described, with the deletion of the limit of four
hundred shillings, in section 3 of this Act;
“Minister” means the Minister for the time being responsible
for finance. (2) Nothing in this Act shall apply to-
(a) the taking of goods in pawn as security for a loan, or for
the grant of credit facilities, exceeding one thousand
shillings, or to the pledge in or the parties to any such
transaction; or
(b) any pledge which before the commencement of this
Act, became the absolute property of a person to whom
it was pawned. 3.–(1) Subject to subsection (3) of this section, no person shall
carry on the business of a pawnbroker.

e property of a person to whom
it was pawned. 3.–(1) Subject to subsection (3) of this section, no person shall
carry on the business of a pawnbroker.

(2) Any person who contravenes the provisions of subsection
(1) commits of an offence and on conviction shall be liable to a
fine not exceeding two thousand shillings or to imprisonment
for a term not exceeding three months or to both such fine and
imprisonment. Short title
Interpretation
and exclusion
Pawnbroking
prohibited
CHAPTER 175
THE PAWNBROKING (PROHIBITION) ACT
An Act to prohibit the business of pawnbroking. [26th March, 1965]
Act No. 17 of 1965
[R.L. Cap. 586]

ed
CHAPTER 175
THE PAWNBROKING (PROHIBITION) ACT
An Act to prohibit the business of pawnbroking. [26th March, 1965]
Act No. 17 of 1965
[R.L. Cap. 586]

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THE PAWNBROKING (PROHIBITION) ACT [CAP. 175 R.E. 2023]
(3) For the avoidance of doubt, it is hereby declared that
nothing in subsection (1) shall apply to any dealing with or in
relation to a pledge taken in pawn before the commencement
of this Act. 4. Subject to the provisions of section 5-
(a) where, on the commencement of this Act, any person
holds any pledge in pawn, he may deal with and in
relation to such pledge in any manner authorised by
law; and
(b) without prejudice to the generality of paragraph (a),
the provisions of the Pawnbrokers Ordinance shall
continue to apply to and in relation to-
(i) any pledge which, being a pledge to which the
Pawnbrokers Ordinance applies, is held in pawn
on the commencement of this Act; and
(ii) any person who is subject to that Ordinance as a
pawnbroker or a pawner in respect of any such
pledge.

pawn
on the commencement of this Act; and
(ii) any person who is subject to that Ordinance as a
pawnbroker or a pawner in respect of any such
pledge.

5.–(1) Notwithstanding the provisions of the Pawnbrokers
Ordinance, the Law of Contract Act or any other rule of law,
or of any contract of pledge, no person who carried on the
business of a pawnbroker before the commencement of this
Act, nor any personal representative of any such person, shall,
on or after the commencement of this Act-
(a) obtain any absolute property in any pledge taken
in pawn before the commencement of this Act as
security for a loan of fifteen shillings or under, until
the expiration of the period prescribed by subsection
(1) of section 12 of the Pawnbrokers Ordinance or the
thirtieth day of June, 1965, whichever is the later;
(b) sell or otherwise dispose of any other pledge taken in
pawn before the commencement of this Act, except at
an auction held on a day appointed by the Minister in
accordance with subsection (2) or (3), or by redelivery
on redemption,
Existing pledges
R.L. Cap. 226
Modifications
of powers of
pawnbrokers
and disposal of
pledges
R.L. Cap. 226
Cap. 345

, or by redelivery
on redemption,
Existing pledges
R.L. Cap. 226
Modifications
of powers of
pawnbrokers
and disposal of
pledges
R.L. Cap. 226
Cap. 345

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632
and until the expiration of the appropriate period, or such date
or auction, as the case may be, a pledge held in pawn on the
commencement of this Act shall continue to be redeemable. (2) The Minister may, by notice in writing to any person
who carried on the business of a pawnbroker before the
commencement of this Act or to any personal representative
of any such person, appoint a day not earlier than the first
day of July, 1965, for the auction of any pledges pawned for
more than fifteen shillings which are then held by such person
or representative, and an auction of all such pledges held by
that person or representative shall be held on that day, or
on such other day as the Minister may substitute therefor,
notwithstanding that any period of redemption shall not then
have expired.

on that day, or
on such other day as the Minister may substitute therefor,
notwithstanding that any period of redemption shall not then
have expired.

(3) Where the Minister fails to appoint a day for the holding
of an auction within one year after the commencement of this
Act in respect of any such person or representative aforesaid,
such person or representative may, by notice in writing to
the Minister, require the Minister to appoint a day for such
purpose, and the Minister shall thereupon appoint a day within
three months of the receipt of the notice, and an auction of all
pledges pawned for more than fifteen shillings which are then
held by that person or representative shall be held on that day,
or on such other day within such period of three months as the
Minister may substitute therefor. (4) The Minister may appoint a person in the service of
the United Republic to supervise an auction and, subject to
the supervision of such a person, the arrangements for every
such auction shall be made, and every such auction shall be
held, in accordance with the provisions in that behalf of the
Pawnbrokers Ordinance. (5) Notwithstanding section 7 of the Pawnbrokers
Ordinance, this section and sections 18 and 19 of the
Pawnbrokers Ordinance shall apply to and in relation to
pledges taken in pawn for loans of more than four hundred
R.L.

n and sections 18 and 19 of the
Pawnbrokers Ordinance shall apply to and in relation to
pledges taken in pawn for loans of more than four hundred
R.L.

Cap. 226

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THE PAWNBROKING (PROHIBITION) ACT [CAP. 175 R.E. 2023]
shillings and to the person to whom they were pawned as they
apply to pledges taken in pawn for more than fifteen shillings
and to pawnbrokers.
6. [Repeals of the Pawnbrokers Ordinance.]Repeal of
R.L. Cap. 226

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