P.R. Laws tit. 10, § 645
The maturity date of any pawn loan shall be thirty (30) days; however, such maturity date may be extended by agreement between the pledgor and the licensee. Each extension shall be evidenced in writing, clearly indicating the new maturity date, as well as the interest and service charges due on the extension date. The licensee shall supply the pledgor with a copy of said agreement. Any term granted for the repayment of a pawn loan exceeding the original thirty (30)-day period shall be considered an extension, as said such term is used in this section, rather than a new loan agreement. In the case of an extension of the pawn loan, the daily interest rate and service charge for the pawn loan during the extension period shall be equal to the interest rate and service charge of the original pawn loan for the original period divided by thirty (30) days (in other words, one-thirtieth (1/30) of the original total service charge and the interest rate of the pawn loan) multiplied by the number of days elapsed. The number of extensions to be agreed upon by the parties shall not exceed fifteen (15) months, but the licensee shall allow pledged goods to be redeemed before the extension period.
In the case of extensions, the agreement shall provide that the payment of the principal, interest, and service charges shall be made under the same terms and at the same interest rate originally agreed upon and, that extra payments may be applied to the principal.
Notwithstanding the foregoing, and as an alternative to a thirty (30)-day pawn loan and extensions thereof, the licensee and the pledgor may agree on a deferred payment agreement, which provides that the payment of principal, interest, and additional fees allowed by this chapter may be made at equal time intervals and amortized in equal amounts. In such cases, the principal obligation shall be deemed to be due and payable when two (2) interest and additional fee installments have become due and payable. The licensee may sell a pledged good after the obligation has become due and payable, subject to the provisions of this chapter.
History —Feb. 24, 2011, No. 23, § 13, eff. 60 days after Feb. 24, 2011; Dec. 16, 2014, No. 209, § 4, eff. 60 days after Dec. 16, 2014.