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Objects and Reasons.
1. The object of this bill is to amend the law relating to pawnbrokers.
2. Section 2 defines "Month" and "Pawnbroker". The effect of the new definition of month is to make interest payable by the Chinese moon instead of by the English Calendar month, as being in accordance with custom.
3. Section 3 is new and confers power on the Governor in Council to make regulations for the better carrying out of the provisions of this Ordinance.
4. Section 4 makes pawnbrokers responsible for the acts and omissions of their servants or agents if done in the course of or in relation to the business and authorises such servants or agents to deputise for their principals. This is based on s. 8 of the Pawnbrokers Act, 1872. In Ordinance No. 1 of 1860 it was mixed with the definition.
5. Section 5 extends the rights of pawners to their assigns and personal representatives on proof of title as in section 9 of the Act of 1872. .
6. Section 6 limits the application of the Ordinance to loans up to $500 which figure was used in the definition section of Ordinance No. 1 of 1860. It is considered better to deal with the matter in a separate section as is done in section 10 of the Act of 1872.
7. Section 7 differs verbally from section 3 of Ordinance 1 of 1860 and makes it clear that the licence required shall be a valid licence on which all due fees have been paid.
8. The new section 8 (1) transfers the power of prescribing the conditions, fees, etc., of pawnbrokers licences from the Captain Superintendent of Police, now known as the Inspector General of Police, to the Governor in Council. This is in conformity with the usual policy in such matters, and fits in with section 3 of this Ordinance which confers power on the Governor in Council to make Regulations under this Ordinance.
9. Sections 9 and 10 and sections 13 to 27 inclusive of this Ordinance, are, apart from verbal alterations, to the same effect as sections 5 and 6 and 9 to 22 of Ordinance 1 of 1860. The use of Chinese characters is called for by section 10 and permitted by sections 13 and 14. Section 16 of this Ordinance contains addi- tional words requiring the pawnbroker to give a receipt for the principal and interest, and section 23 substitutes unlawful con- duct" for "unlawful practice", as being more definite. A new sub-section has been added to section 24 and a note added to the pawn-ticket because a clause to that effect has become a conven- tional part of every Chinese pawn-ticket.
10. Section 11 which confers power to inspect goods pledged and pawnbrokers' books is made more elastic by substituting the words "police officer not below the rank of sergeant", for the previous language, "inspector of police", and by empowering the Inspector General of Police to give general authority to a constable to inspect pawnbrokers' books in general. In practice a limited power to search the books of specified pawnbrokers only has been found inadequate.
11. Section 12 differs from section 8 of Ordinance 1 of 1860 in the following respects :--
(i) In making simple interest only chargeable-Hitherto some pawnshops have been charging compound interest, with monthly rests.
(ii) In conferring upon the Governor in Council power
to alter the rates of interest chargeable.