Terms and Condition

1. The pawner hereby accepts the pawnshop’s appraisal as proper.

2. The pawner agrees on the interest rates imposed in this contract of pledge. In case of dispute, the regular courts of law have the vested power to determine the reasonableness and legality of interest rates. The pawnshop hereby agrees not to collect advance interest for a period of more than one (1) year.

3. The service charge is equivalent to one percent (1%) of the principal loan, but shall not exceed five pesos (P5.00). No other charges shall be collected.

4. This loan is renewable for such amount and period as may be agreed upon between the pawnshop and the pawner subject to the same requirements for a new loan.

5. Upon maturity of this loan, as indicated on the face of this pawn ticket, the pawner has ninety (90) days from maturity date within which to redeem the pawn by paying the principal loan plus the interest that shall have accrued thereon.

6. The amount of interest due and payable after the maturity date of the loan up to the redemption period shall be computed upon redemption at the rate of provided above based on the sum of the principal loan and interest earned as of the date of maturity. Any additional penalty and/or interest shall also be computed in the same manner.

7. The pawnshop shall notify the pawner of any change in its business address/ location through: (1) publication in English and in Filipino or in the local dialect in two (2) daily newspapers of general circulation in the city or municipality where the pawnshop is closing business; and (2) posting in English and Filipino or in the local dialect for one (1) month after date of publication in a conspicuous place in the premises to be vacated and to be transferred to.

8. The pawner and the pawnshop agree that the notice of auction sale shall be delivered via ¨e-mail, ¨SMS, ¨fax or ¨registered mail or courier at ______________________. (check box of agreed mode and indicate the email address; mobile phone no.; fax no; or complete residential address, as may be appropriate, in the space provided). In case no mode of notification is agreed upon, the default shall be via ordinary mail. The pawnshop shall have the right to sell or dispose of the pawn in public auction if the pawner fails to redeem the pawn within the ninety (90) day grace period.
The pawnshop shall send the reminder on or before the expiration of the ninety (90) day grace period.

9. The pawner shall advise the pawnshop of any change of address/mobile phone number/e-mail address/fax number.

10. This ticket shall be surrendered at maturity date upon payment of the loan. In case of loss or destruction of this ticket, the pawner hereby undertakes to personally present an affidavit to the pawnshop before the redemption period expires. The pawnshop has two (2) days to decide whether to accept: (1) the affidavit in place of the original pawn ticket; or (2) to issue a substitute pawn ticket, thereby cancelling the original.

11. In case of pre-payment of this loan by pawner, the interest collected in advance shall accrue in full to the pawnshop.

12. The pawner shall not be entitled to the excess of the public auction sale price over the amount of principal, interest and service fee; neither shall the pawnshop be entitled to recover the deficiency from the pawner.

13. The pawner declares under the penalty of the Anti-Fencing Law that he is the owner of the property subject of this contract.

The pawnshop shall exercise reasonable care and caution that an ordinary prudent person would as to his own property over the thing pawned in accordance with Republic Act No. 386 Civil Code of the Philippines), as amended. Accordingly, the pawnshop shall insure all pawned items, except those which are kept inside a fireproof vault, in accordance with the pertinent regulations of the Bangko Sentral ng Pilipinas. Claims for restitution by pawners in case of loss, destruction or defect of the pawn due to robbery, fire and other fortuitous event, with or without the fault or negligence of the pawnshop, its owner, managing partner, directors and officers are cognizable by the regular courts.

14. The pawnee shall not be liable for the loss or damage of the article pawned due to fortuitous events or force majeure. When the loss is due to the fault and/or negligence of the pawnee, the amount of its liability, if any, shall be limited to the appraised value appearing on the face hereof.

15. Venue of all judicial and administrative cases or proceedings and other legal incidents arising out of or in connection with this contract shall solely and exclusively be brought before appropriate courts, departments, offices or agencies of the government situated in (locality of pawnshop head office).

16. The authorized representative must present valid identification papers.

17. Upon expiration of the redemption period, the pawnshop has the right to open the sealed pawn for purposes of public auction.

18. For purposes of computing the amount of interest for pledge loans paid after maturity date, a fraction OF THE ORIGINAL TERM OF THE LOAN AGREED UPON AS INDICATED AT THE FACE OF THE PAWN TICKET SHALL BE CONSIDERED AS ONE FULL TERM.

19. Any one of the following: a.In case this loan is not paid on maturity date, the pawner hereby agrees to pay in addition to accrued interest, 2 percent per month of the principal, as liquidated damages. For purposes of computing the amount of liquidated damages, a fraction OF THE ORIGINAL TERM OF THE LOAN AGREED UPON AS INDICATED AT THE FACE OF THE PAWN TICKET SHALL BE CONSIDERED AS ONE FULL TERM.

b.The pawnshop may at its sole option, allow redemption of pawn after expiration of the 90-day grace period. Provided the pawner shall pay the principal plus interest due at the rate prescribed herein and liquidated damages of 2 percent per month on the principal, counted after grace period. For purposes of computing the amount of liquidated damages, a fraction OF THE ORIGINAL TERM OF THE LOAN AGREED UPON AS INDICATED AT THE FACE OF THE PAWN TICKET SHALL BE CONSIDERED AS ONE FULL TERM.

Know Your Customer

App. P-7 “Know-Your-Pawner” Policy (Appendix to Subsection 4301P.3)

A pawner who transacts with a pawnshop for the first time shall be required to present the original and submit a clear copy of at least one (1) valid photo-bearing identification document (ID) issued by an official authority.

The valid ID should indicate the pawner’s residential address, otherwise, he/she is also required to present the original and submit a clear copy of a certification from the barangay where the pawner resides or a billing statement that indicates his/her residential address.

Valid IDs include the following:

Passport, including those issued by foreign governments.

Driver’s License.

Professional Regulation Commission (PRC) ID.

National Bureau of Investigation (NBI) Clearance.

Police Clearance

Postal ID

Voter’s ID

Barangay Certification

Government Service Insurance System (GSIS) e-Card.

Senior Citizen Card.

Overseas Workers Welfare Administration (OWWA) ID.


Seaman’s Book

Alien Certification of Registration/Immigrant Certificate of Registration Government Office and GOCC ID, e.g. Armed forces of the Philippines (AFP ID), Home Development Mutual Fund (HDMF ID).

Certification from the National Council for the Welfare of Disabled Persons(NCWDP).

Department of Social Welfare and Development (DSWD) Certification Integrated Bar of the Philippines (IBP) ID.

Company IDs issued by private entities or institutions registered with or supervised or regulated either by the Bangko Sentral ng Pilipinas, Securities and Exchange Commission or Insurance Commission.

The copy of the ID, barangay certificate or billing statement shall be kept by the pawnshop for convenience of the pawner who continues to transact with the pawnshop but said documents should be updated at least every two (2) years.

(Appendix to Subsection 4324P.1)

Redemption of Pawn Items

A pawner who fails to pay his obligation has ninety (90) days from maturity date to redeem the pawn by paying the principal and interest.

Redemption of Pawn Items

Unredeemed pawn items shall be sold/disposed of only through public auction.

Pawner shall be notified of the public auction on or before the expiration of the ninety (90)-day grace period through the mode of notification agreed upon by the pawner and the pawnshop as indicated at the back of the pawn ticket at the time the loan was granted.

The notice to pawner shall contain the date, hour and place where the public auction shall be conducted.

A pawnshop shall publish a notice of public auction in at least two newspapers circulated in the city or municipality where the pawnshop has its place of business six (6) days prior to the date of public auction. In remote areas where newspapers are neither published nor circulated, notice by newspaper publication shall be complied with by posting notices at the city or municipal hall and in two (2) other conspicuous public places where the pawnshop has its place of business. Pawner may participate in the said public auction.