New South Wales Consolidated Acts
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PAWNBROKERS AND SECOND-HAND DEALERS ACT 1996 - SECT 3A
Definition of "pawnbroker"
(1) In this Act,
"pawnbroker" means a person who carries on a business of lending money on the
security of pawned goods.
(2) For the purposes of this Act, goods are
"pawned" if the goods are taken into the possession of a lender of money for
the purpose of the lender relying on possession of the goods as security for
the repayment of the loan.
(3) In determining for the purposes of this Act
whether goods are pawned and whether money is lent on the security of pawned
goods, the following principles are to apply-- (a) regard is to be had to the
substance of the loan transaction rather than its form or other legal
technicalities,
(b) particular regard is to be had to the ordinary
understanding of the borrower as to the nature of the loan transaction and the
reason or basis on which possession of goods is given to the lender,
(c) 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
borrower 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,
(d) goods can be considered pawned and money can be considered lent on the
security of pawned goods even if the loan also gives rise to a mortgage of the
goods.
(4) The regulations may specify cases or circumstances in which, for
the purposes of this Act-- (a) the taking of goods into the possession of a
lender of money in connection with the loan is a pawning of the goods (whether
or not that taking into possession is for the purpose of the lender relying on
possession of the goods as security for the repayment of the loan), or
(b)
the taking of goods into the possession of a lender of money in connection
with the loan is not a pawning of the goods (despite that taking into
possession being for the purpose of the lender relying on possession of the
goods as security for the repayment of the loan), or
(c) the taking of goods
into the possession of a person acting on behalf of a lender or associated
with a lender is taken to be the taking of goods into the possession of the
lender.
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