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The distinction between a pawnbroker and someone engaged in the business of making small loans is explained in 53A Am

The distinction between a pawnbroker and someone engaged in the business of making small loans is explained in 53A Am

The issue on appeal is whether KTL is a pawnbroker. Resolution of this issue is determinative of whether KTL’s actions were illegal pursuant to KRS , KRS , and KRS . KRS defines pawnbroker as:

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A pawnbroker is to be distinguished from one engaged in the business of making small loans upon security of chattel mortgages or wage assignments

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Any person who loans money on deposit of personal property, or who deals in the purchase of personal property on condition of selling the property back again at a stipulated price, or who makes a public display at his place of business of the sign generally used by pawnbrokers to denote their business, or who publicly exhibits a sign advertising money to loan on personal property or deposit is a pawnbroker. (Emphasis added.)

KTL argues that it is a pawnbroker pursuant to KRS because it advances money on the deposit of customers’ personal property (car titles) and it displays a sign advertising loans on deposit of personal property

KRS Chapter 226 does not provide a definition or an explanation of the phrase on deposit of personal property as used in this chapter.