P.R. Laws tit. 10, § 634
For purposes of this chapter, the following definitions are hereby adopted:
(a) Liquid assets.— Assets that can be converted into cash quickly at the least possible cost. These include cash, bank deposits, and securities with a maturity date of less than three (3) months.
(b) Law enforcement agency.— For purposes of this chapter, means the Department of the Treasury, the Municipal Police Corps, the Puerto Rico Police Department, or the Office of the Commissioner of Financial Institutions.
(c) Year.— Equal to a period of twelve (12) months.
(d) Service charge.— Amount of money, rate, discount, or commission that a natural or juridical person engaged in the pawnbroking business charges his/her clients, directly, indirectly, or disguised, as a compensation for the services rendered.
(e) Commissioner.— The Commissioner of Financial Institutions of Puerto Rico.
(f) Purchase.— The acquisition of personal property without a repurchase agreement, including precious metals and precious stones from a licensee by a person. It also includes the acquisition of personal property without a repurchase agreement, including precious metals and precious stones, by a person from a licensee, other than an authorized vendor, by consignment or trade for value or other goods.
(g) Licensee.— The person to whom the Commissioner of Financial Institutions of Puerto Rico has issued a license under this chapter.
(h) Law enforcement officer.— For purposes of this chapter, an Internal Revenue Agent of the Department of the Treasury, personnel from the Office of the Commissioner of Financial Institutions or an officer of the Puerto Rico Police or Municipal Police Corps, jointly or separately.
(i) License.— The authorization issued by the Commissioner to operate a pawnbroking business.
(j) Month.— Equal to a period of thirty (30) days.
(k) Precious metal.— Includes gold, silver, platinum, sterling silver, rhodium, and palladium in any grade of purity of said metals, or in any item commonly or commercially known as jewelry.
(l) NAICS.— Means the North American Industry Classification System. NAICS is a system to organize industries and businesses used at the federal level by agencies that gather and classify information in order to collect, analyze, and publish statistics related to the United States economy.
(m) Pawnbroking business.— Includes any activity whereby a person engages in the granting of pawn loans, including loans with a repurchase agreement, as well as buying and selling precious metals, precious stones, or any other personal property, as authorized by this chapter.
(n) OCFI.— The Office of the Commissioner of Financial Institutions of Puerto Rico.
(ñ) Office.— The location of the licensee’s principal office and any other location where the pawnbroking business is conducted.
(o) Person.— Any natural person of legal age or juridical person, including, but not limited to individuals, partnerships, corporations, trusts, or any other legal entity.
(p) Precious stone.— Any gem such as a diamond, emerald, ruby, or sapphire, or any semiprecious stone, including, but not limited to an amethyst, agate, spinel, jasper, onyx, opal, topaz, turquoise, pearl, or other.
(q) Pledgor.— A person who takes money on loan, on the security of pledged personal property.
(r) Pawnbroker.— A money lender.
(s) Pawn loan.— The delivery of a sum of money by a pawnbroker in exchange for any personal property, including motor vehicle titles, susceptible of ownership, as collateral for compliance with the obligation to repay said sum on a specific fixed or future date, together with the accrued interest thereon and any other additional charge allowed by this chapter.
Also, a pawn loan shall be understood to be the sale of personal property with a repurchase agreement, when the purchaser acquires such good, granting the vendor the right to redeem the same, paying a previously determined amount in excess of the original sales price, plus the charges allowed, within an established term that shall not exceed one hundred eighty (180) days. It shall also be deemed to be a pawn loan when the personal property and title thereof have been pledged as collateral to the pawnbroker and such personal property remains in the possession of the debtor upon agreement with the pawnbroker.
It shall be presumed that this sale with repurchase agreement constitutes a pawn, even if the title is transferred to the buyer. It shall be further presumed that the amount paid in excess of the original sales price agreed upon to obtain the return of the sold good constitutes agreed upon interest.
(t) Interest rate.— The charge for borrowing money as a result of a pawn loan, expressed as an annual percentage rate.
(u) Seller.— Any person who sells or attempts to sell any precious metal, precious stone, or personal property to a licensee without the right to repurchase. It also includes the licensee when he/she sells personal property to a person.
History —Feb. 24, 2011, No. 23, § 2, eff. 60 days after Feb. 24, 2011; Dec. 16, 2014, No. 209, § 1, eff. 60 days after Dec. 16, 2014.