(Definition)
Article 1. "A pawnbroker business" in this Law shall mean a business of lending money with a contract that money is lent by taking an article (including securities;hereinafter the same) in pawn, and that, if the claim secured on that pawned goods is not paid on or before the day of forfeit, payment is to be made by that pawned goods.
2 "A pawnbroker" in this Law shall mean one who operates a pawnbroker business and has obtained a permission in accordance with provision of Article 2 paragraph 1.
(Permission of Pawnbroker Business)
Article 2. Any person who intends to become a pawnbroker shall obtain permission, as to each business office respectively, of the Public Safety Commission in whose jurisdiction the business office will be located, according to the procedures as provided for in the Prime Minister's Office Ordinance (hereinafter referred to as "the Ordinance" ).
2 In the case of the preceding paragraph, when a person, who wants to become a pawnbroker, opens a business office which he does not manage in person, he shall designate manager of the office.
(Standard of Permission)
Article 3. In case where any person who wants to obtain permission in accordance with the provision of Article 2 paragraph 1 comes under any of the following items, the Public Safety Commission shall not give permission to him:
(1) Any person with respect to whom three (3) years have not elapsed after he, having been sentenced to the term of imprisonment without hard labor or graver penalty, has completed the execution of the penalty or been remitted thereof;
(2) Any person who has been sentenced to a fine, during past three (3) years prior to the date of his application for permission, for violation of provision of Article 5, or who has been sentenced to a fine for violations of the provisions of other laws and orders and the type of his offence are unsuitable for his becoming a pawnbroker;
(3) Any person who has no fixed place of residence or abode;
(4) A minor who does not possess the same ability as the major as regards the business;or a person adjudged incompetent. However, this shall not be applicable to the case where the person is an heir to a pawnbroker and whose legal representative does not come under any of the preceding items or item (6);
(5) Any bankrupt who is not rehabilitated;
(6) Any person with respect to whom three (3) years have not elapsed since the day when his permission was cancelled in accordance with the provision of Article 25 paragraph 1;
(7) Any person whose relative lodging with him comes under the provision of the preceding item, or is under the disposition of suspension of the business;
(8) Any person who employs an office manager who comes under any of items (1) to (6) inclusive;
(9) Any juridical person which has, among its executive directors who carry on the business, a person who comes under any of items (1) to (6) inclusive;
(10) Any person who has no facilities for keeping the pawned goods fitted to the standard, when that standard for facilities for keeping the pawned goods is fixed by the Public Safety Commission in accordance with the provision of Article 7 paragraph 1.
2 The Public Safety Commission shall allow for hearing of and presentation of evidence by the applicant before the administrative decision to refuse the permit is made.
3 In case a permission is not given, the Public Safety Commission shall notify the applicant with a written note describing the reason for it.
(Change of Business Conditions)
Article 4. In case any pawnbroker intends to move his business office in the same district under the Jurisdiction of the Public Safety Commission, or where an office manager is installed anew or changed, he shall, according to the procedures as provided for by the ordinance, obtain a permission of the competent Public Safety Commission.
2 In case any pawnbroker has closed or wants to suspend his business for a long time, or where the items entered in a written application for permission in accordance with the provision of Article 2 paragraph 1 have been changed, he shall report the matter to the competent Public Safety Commission according to the procedures as provided for in the Ordinance.
3 In case a pawnbroker died, his relative who lodges with him, his legal representative or office manager shall report on the death in accordance with the provision of the preceding paragraph with necessary modifications.
(Prohibition of Business without Permission)
Article 5. No person other than a pawnbroker shall operate a pawnbroker business.
(Prohibition of Business under another Person's Name)
Article 6. Any pawnbroker shall not make another person, under his name, engage in a pawnbroker business.
(Facilities for Keeping)
Article 7. When it is deemed necessary for prevention of fire or theft, etc., the Public Safety Commission may fix the standard concerning facilities to be established by a pawnbroker for keeping the pawned goods.
2 In case the Public Safety Commission has fixed the standard under the preceding paragraph, it shall notify it by the fixed notification forms.
3 In case the Public Safety Commission has fixed the standard concerning facilities for keeping the pawned goods in accordance with the provision of the preceding paragraph, a pawnbroker shall establish facilities for keeping the pawned goods according to that standard.
(Permit Certificate)
Article 8. When the Public Safety Commission gives a permission in accordance with the provision of Article 2 paragraph 1, a permit certificate shall be delivered.
2 The permit certificate under the preceding paragraph shall lose its validity, unless it is renewed every three (3) years by the competent Public Safety Commission according to the procedures as provided for by the Ordinance.
3 The necessary matters concerning the form, revision and re-delivery of the permit certificate shall be provided for by the Ordinance.
4 When any person who has obtained the permit certificate under the provision of paragraph 1 has lost the said permit certificate or has it stolen, he shall report to that effect to the competent Public Safety Commission without delay according to the procedures as provided for by the Ordinance.
(Return of the Permit Certificate)
Article 9. When any person who has obtained the permit certificate in accordance with the provision of the preceding Article comes under any of the following items, he must return the permit certificate to the competent Public Safety Commission within ten days according to the procedures as provided for by the Ordinance:
(1) When the term of validity of the permit certificate expires;
(2) When any one closes his business;
(3) When any one who has the permit certificate re-delivered recovers the former lost or stolen permit certificate;
(4) When the permission is cancelled.
2 When a pawnbroker died, a relative who lodges with him, his legal representative or an office manager, who is obliged to report his death in accordance with the provision of Article 4 paragraph 3, shall return the permit certificate in accordance with the provision of preceding paragraph.
3 When a juridical person dissolves due to reasons other than merger or ceases to exist due to merger, a liquidator or a bankruptcy administrator in the case of dissolution due to reasons other than merger, and a leading officer of a juridical person who ceases to exist in the case of merger, shall return the permit certificate in accordance with the provision of paragraph 1.
(Indication of Permit)
Article 10. Any person who has obtained a permission in accordance with the provision of Article 2 paragraph 1 shall indicate the permission, as provided for by the Ordinance, at the place easy to see in the business office.
(Charge)
Article 11. Any person who intends to have a permit certificate delivered, renewed or redelivered by the To, Do, Fu or Prefectural Public Safety Commission in accordance with the provision of Article 8 shall pay to the National Treasury a charge to cover the cost of its issuance, renewal or redelivery as provided for by the Ordinance.
2 The amount of the charge under the preceding paragraph shall be within 1,000 yen, and be provided for by the Ordinance.
3 In case where any city, town or village, or the Tokyo Metropolitan Office levies a charge for the business concerning the permit certificate conducted by the Public Safety Commission of city, town or village, or of a Special Ward, in accordance with the provision of Article 8, the amount of the charge shall not be over 1,000 yen.
(Restriction of Business)
Article 12. Any pawnbroker shall not take goods in pawn in places except his business office, or the residence or abode of a pledger.
(Confirmation and Report)
Article 13. When a pawnbroker takes a thing in pawn, he shall confirm the name, address, occupation and age of a pledger by the method as provided for by the Ordinance.
In case there is a suspicion of fraudulent article, he shall report forthwith to that effect to a police official of National Rural Police or of Autonomous Entity.
(Book)
Article 14. Any pawnbroker shall provide a book according to the forms as provided for by the Ordinance in which each of the following matters shall be entered whenever he makes a contract of pawn, or returns the pawned goods, or disposes of the forfeited goods:
(1) Date of pawncontract;
(2) Kind and quantity of the pawned goods;
(3) Characteristics of the pawned goods;
(4) Name, address, age, occupation and features of a pledger;
(5) Method of confirmation made in accordance with the provision of the preceding Article;
(6) Date when the pawned goods are returned or the forfeited goods are disposed of;
(7) Kind and quantity of the forfeited goods;
(8) Name and address of the other party with whom the forfeited goods are disposed of.
Article 15. When a pawnbroker intends to destroy the book under the preceding Article, he shall receive authorization from the chief of police station who has the jurisdiction over the area where there is a pawnbroker's business office.
2 When a pawnbroker has damaged, lost or has the book stolen under the preceding Article, he shall, without delay, report to the effect to the chief of police station under the preceding paragraph.
(Evidence of Pawning)
Article 16. A pawnbroker shall give a pawn ticket or pass book to a ledger when he makes a contract of pawning.
2 The forms of, and the matters to be entered in, a pawn ticket or pass book shall be determined by the Ordinance.
(Posting of Notice)
Article 17. A pawnbroker shall post the following notice at the place where it can be seen easily:
(2) How to calculate the interest;
(3) When a pawn is to be forfeited;
(4) Other than those mentioned in each of the preceding items matter to be contents of pawn contract;
2 The date of forfeit under item (3) of the preceding paragraph shall not be fixed before less than three months have elapsed since a contract of pawn is made.
3 A pawnbroker must not make a contract of pawn which is different from the contents of the posted notice concerning the matters mentioned in items (1) to (4) inclusive of paragraph 1, and which is disadvantageous to a pledger.
4 When a contract is made in violation of the provision of the preceding paragraph, that part of violation shall be regarded that it is made according to the contents of the posted notice.
(Return of the Pawned Good)
Article 18. A pledger may, at any time before the date of forfeit, restore the pawned good by paying principal and interest. In this case, a pledger shall return a pawn ticket, or have it entered in a pass book that the pawned goods have been returned.
2 A pawnbroker must not return the pawned goods to a person other than a pledger or one who presents a material which is enough to certify that one has a legal right to receive the pawned goods.
(Acquisition and Disposal of the Forfeit)
Article 19. A pawnbroker shall acquire an ownership of the pawned goods when the term of forfeit expires. However, when a pledger pays a principal and interest up to the date of forfeit and a sum of money corresponding to the interest which may be required to be paid if a contract of pawn is renewed when the term of forfeit expires, a pawnbroker shall, before the pawned goods are disposed of, endeavour to return them.
2 A pawnbroker may sell the forfeited goods at the market mentioned in Article 1 paragraph 3 of the Second-hand Business Law (Law No.108 of 1949) irrespective of the provision of Article 15 paragraph 2 of the same Law.
(Measures in Case of Pawned Goods being Lost)
Article 20. In case the pawned goods were lost, destroyed or stolen due to disaster or other reason, a pawnbroker shall inform of it to a pledger of the pawned goods concerned without delay.
2 In case a pawnbroker lost possession of the pawned goods due to the reason whose responsibility can be borne by neither a pawnbroker nor a pledger, a pawnbroker shall lose the credit secured on the pawned goods.
3 A pawnbroker shall not make a contract to let a pledger renounce before-hand his right of damages in case the pawned goods are lost or injured or stolen due to the reason that the responsibility is to be borne by a pawnbroker.
(Circular)
Article 21. A chief of police or the chief of a police station, when he deems it necessary, may issue circulars of stolen articles to pawnbrokers.
2 In case any pawnbroker receives the circular under the preceding paragraph, he shall enter the date of receipt in it and preserve it for six (6) months from that date.
3 In case any pawnbroker is in possession of the stolen article as the pawned goods or the forfeited goods at the time when he receives a circular, or receives a corresponding article during the period provided for in the preceding paragraph, he shall forthwith report to that effect to a police official of National Rural Police or of Autonomous Entity.
(Recovery of Stolen or Lost Articles)
Article 22. In case there is a stolen or lost article among the goods which a pawnbroker possesses as pawned goods or forfeited goods, the victim or loser may make a request for recovery without compensation to the pawnbroker, no matter whether or not the article concerned has been bona fide received to be in pawn from another pawnbroker who handles the same kind of articles. However, after one (1) year elapsed from the time of theft or loss, this shall not apply.
(Suspension)
Article 23. In cases there is a sufficient reason to suspect the articles which a pawnbroker possesses as pawned goods or forfeited goods are stolen or lost ones, the chief of police station may, fixing a period not exceeding thirty (30) days, order the said pawnbroker to keep the said articles in custody.
(Entry and Examination)
Article 24. In case a police official of National Rural Police or of Autonomous Entity deems it necessary, he may enter, during the business hour, into a business office, a place where pawned goods are kept in custody, to inspect pawned goods and books under the provision of Article 14, or may inquire the persons concerned.
2 In the case of the preceding paragraph, a police official of National Rural Police or of Autonomous Entity shall carry his identification certificate and show it to the persons concerned.
(Cancellation and Suspension of Permission)
Article 25. In case a Public Safety Commission deems it necessary in case of coming under any of the following items, it may cancel the permission of pawnbroker, or may order, fixing a period within one (1) year, to suspend the business of a pawnbroker:
(1) In case a pawnbroker is sentenced to imprisonment without hard labor or graver penalty on the charge of the violations of other Laws and Orders or sentenced to a fine and the type of his offence are unsuitable for his being a pawnbroker;
(2) In a case where any pawnbroker comes under the provision of Article 3 paragraph 1 item (3), (5) or (8);or in a case where any pawnbroker is juridical person who has, among its executive directors who carry on the business, a person who comes under any of the provisions of Article 3 paragraph 1 item (1) or items (3) to (6) inclusive or who has been sentenced to a fine, during three (3) years prior to the date of intended cancellation of the permission or of intended suspension of the business, for violation of Article 5, or who has been sentenced to a fine, during three (3) years prior to the date of intended cancellation of the permission or of intended suspension of the business, for violations of other laws and orders and the type of the offences are unsuitable for his being a pawnbroker;
(3) In case any legal representative of a pawnbroker comes or has come under any of the provision of Article 3 paragraph 1 item (1) or (3) or (6) or in case he is sentenced to a fine during three (3) years prior to the date of intended cancellation of the permission or of intended suspension of the business, of a charge of violations of other laws and orders, and the type of the offences are unsuitable for his being a pawnbroker;
(4) In case any pawnbroker, his proxy, his employee or other worker violates this Law or the ordinances issued thereunder, However, this provision shall not apply to the case where any proxy, employee, or the other worker of a pawnbroker commits the violation of this Law or the ordinances issued thereunder, and it is provided that a pawnbroker (in case he is under disability, his legal representative) has exercised due care and supervision over the business in order to prevent the aforesaid violation committed by his proxy, employee or the other worker;
(5) In case any pawnbroker does not renew its permit certificate without any proper reason.
2 In case the permission of a pawnbroker, who has more than two (2) business offices, is cancelled, or his business is suspended with respect to one office, in accordance with the provision of the preceding paragraph, the Competent Public Safety Commission for the other office, or offices may, according to circumstances, cancel the permission or suspend the business of the other office or offices. In this case, cancellation or suspension shall be done no matter whether or not the place of the former office is situated under the jurisdiction of the same Public Safety Commission as the one mentioned above.
(Public Hearing)
Article 26. In case the Public Safety Commission intends to make a disposition under the preceding Article, the said Commission shall hold a public hearing, asking for the presence of the broker concerned or of his proxy in advance, in order to give an opportunity to explain or produce evidences.
2 In case of the preceding paragraph, the Public Safety Commission shall notify the reason of disposition to be made as well as the fixed date and place of public hearing to the broker concerned by not later than one (1) week of that fixed date. Also, the fixed date and place of public hearing shall be announced publicly.
(Notification of a Public Safety Commission).
Article 27. A Public Safety Commission, in case it deems that a pawnbroker which has the permission issued from other Public Safety Commission or its proxy, employee, other workers have violated this Law or ordinances issued thereunder, must notify the fact to the said Public Safety Commission without delay.
2 When, in case a Public Safety Commission has cancelled the permission of a pawnbroker or has suspended the business, a pawnbroker has another business office in the district which comes under the jurisdiction of other Public Safety Commission, the notification thereof must be made to the said Public Safety Commission immediately.
(Protection of Pledger)
Article 28. In case a pawnbroker has abolished his business, or the permission of pawnbroker has been cancelled, one who was a pawnbroker shall, as to the contract of pawn which was made before the day of abolishment of business, or cancellation of business return the pawned goods against the withdrawal of the loans, or take other measures to fulfil the content of contract of pawn.
2 The provision of the preceding paragraph shall apply mutatis mutandis to the case where the business of a pawnbroker has been suspended.
3 In case a pawnbroker has come under any of the following items, the person who comes under each of the items shall, as to the contract of pawn which was made before the day of occurrence of the reason mentioned in the item concerned, withdraw loans, return the pawned goods, or take other measures to conclude the contract of pawn, according to the content of the contract of pawn:
(1) In case of death, his successor who has obtained an approval of the competent Public Safety Commission, with each business office of a pawnbroker respectively, or an inheritance manager;
(2) In case of a juridical person which has dissolved due to reasons other than merger, a liquidator or bankruptcy administrator;
(3) In case of a juridical person who has ceased to exist due to merger, a juridical person who exists after merger, or a juridical person who is established by merger.
4 In applying the provisions of Article 14, Article 15, Articles 18 to 24 inclusive a person mentioned in paragraph 1 and each item of the preceding paragraph shall be regarded as a pawnbroker.
5 The act provided for in paragraph 1 (including the case where it applies mutatis mutandis in paragraph 2) or paragraph 3 shall be conducted in the former business office unless otherwise approved by the competent Public Safety Commission.
6 The Public Safety Commission may, in case of paragraph 3 item (1) or the preceding paragraph, not give an approval, when it is deemed necessary for the protection of a pledger.
(Bringing in Action)
Article 29. Any one, who has been imposed a disposition of the Public Safety Commission or chief of a police station in accordance with the provisions of this Law, may bring in an action in accordance with the provision of the Law for Special Regulation concerning the Procedure of Administrative Litigations (Law No.81 of 1948).
(Penal Provisions)
Article 30. Any person who violates the provisions of Article 5, or Article 6 or who violates the disposition provided for in the provision of Article 25 shall be liable to imprisonment with hard labor not exceeding three (3) years or a fine not exceeding one hundred thousand yen (\100,000), or liable to both.
Article 31. Any person who violates the provision of Article 12 shall be liable to imprisonment with hard labor not exceeding one (1) year, or a fine not exceeding thirty thousand yen (\30,000), or liable to both.
Article 32. Any person who violates the provision of Article 4 paragraph 1, the former part of Article 13, Article 14, Article 15 paragraph 1 or Article 21 paragraph 2 or paragraph 3 or who violates the disposition under the provision of Article 23 shall be liable to imprisonment with hard labor not exceeding six (6) months or a fine not exceeding ten thousand yen (\10,000), or liable to both.
Article 33. A person who falls under any of the following items shall be liable to a fine not exceeding ten thousand yen (\10,000):
(1) Any person who violates the provision of Article 4 paragraph 2 or paragraph 3, Article 8 paragraph 4, Article 9, Article 10, Article 15 paragraph 2, Article 17 paragraph 1, paragraph 2 or paragraph 3 or Article 18 paragraph 2, or Article 28 paragraph 1 (including the case where it applies mutatis mutandis in paragraph 2 of the same Article), paragraph 3 or paragraph 5;
(2) Any person who refuses, hinders or challenges the entry, or the examination of pawned articles or books, by a police official of National Rural Police or of Autonomous Entity, under the provision of Article 24, paragraph 1
Article 34. Any person who violates the provision of Article 21 paragraph 3, due to negligence, shall be liable to detention or a minor fine.
Article 35. In case any representative of a juridical person, proxy, employee, or the other worker of a juridical person or of a natural person commits the violation under the provision of Articles 30 to 33 inclusive for the business of the juridical person or the natural person, not only the offender be punished, but the juridical person or the natural person concerned shall be liable to a fine under each Article the Penal Provisions, unless it is proved that the natural person (in case he is under disability, his legal representative) has exercised due care and supervision over the business in order to prevent the aforesaid violation committed by his proxy, employee or the other worker.