Western Australian Consolidated Acts

PAWNBROKERS AND SECOND-HAND DEALERS ACT 1994 - SECT 5

5 .         Buy-back contracts regarded as lending money on security of pawned goods

                If a person receives goods under a contract of sale where the seller has a right to buy back the goods, then for the purposes of this Act —

            (a)         the person receiving the goods is taken to be lending money on the security of the goods as pawned goods;

            (b)         the price at which the goods are to be sold under the contract is taken to be the amount lent;

            (c)         the difference between the amount lent and the price at which the goods may be bought back is taken to be the interest payable; and

            (d)         the right to buy back the goods is taken to be the right to redeem the goods.

        [Section 5 inserted by No. 46 of 2006 s. 6.]