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Questions and Answers
What is the term used to refer to the borrower from a pawnshop?
What type of property is excluded from being delivered to a pawnshop?
What is the term used to refer to the area where the pawning business is conducted?
What is the document issued by the pawnbroker as a receipt for a pawn?
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What is the authorization required for a person or entity to engage in pawnshop business?
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What is the minimum fine that can be imposed upon persons or entities that violate the provisions of this Act?
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What is the penalty for holding oneself out to be a financing company without authority?
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What is the penalty for an officer, employee, or agent of a financing company who knowingly and willingly makes a false statement in any application, report or document required to be filed under this Act?
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What is the consequence of using a trade or firm name containing the words 'Financing Company' or 'Leasing Company' without authority?
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What is the purpose of overvaluing securities in connection with a loan or discounting line?
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Study Notes
Penalty for Unauthorized Financing Companies
- Imprisonment of up to 6 months or a fine of P10,000 to P100,000, or both, may be imposed on individuals, associations, partnerships, or corporations that engage in financing business without authority from the Securities and Exchange Commission.
- This penalty also applies to those who hold themselves out to be financing companies without authority, make false representations, or use a trade or firm name that implies they are a financing company.
- Additionally, this penalty applies to those who violate the provisions of the Act.
Definition of Terms
Pawnshops
- A pawnshop is a person or entity that lends money on personal property delivered as security for loans.
- A pawnshop is synonymous with pawnbroker or pawn brokerage.
Definitions of Key Terms
- Pawner: the borrower from a pawnshop.
- Pawnee: the pawnshop or pawnbroker.
- Pawn: the personal property delivered by the pawner to the pawnee as security for a loan.
- Pawn ticket: the pawnbroker's receipt for a pawn, which is neither a security nor a printed evidence of indebtedness.
- Property: only personal property actually delivered to the control and possession of the pawnshop, excluding specified chattels such as guns, knives, and similar weapons.
- Pawnshop operator: a person or juridical entity authorized by the Bangko Sentral to engage in pawnshop business.
- Pawnshop office: the area where the pawning business is conducted.
Form of Organization
- A pawnshop may be established as a single proprietorship, partnership, or corporation.
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Description
Test your knowledge of the penalties for violating the Securities and Exchange Commission regulations. Learn about the fines and imprisonment for unauthorized financing companies and more. Check your understanding of the laws and regulations governing financing companies.
