Part VIII Security

Pledges

120 Consequence of failure to redeem. C1

1

If at the end of the redemption period the pawn has not been redeemed—

a

notwithstanding anything in section 113, the property in the pawn passes to the pawnee where

F1i

the redemption period is six months,

ii

the pawn is security for fixed-sum credit not exceeding £75 or running-account credit on which the credit limit does not exceed £75, and

iii

the pawn was not immediately before the making of the regulated consumer credit agreement a pawn under another regulated consumer credit agreement in respect of which the debtor has discharged his indebtedness in part under section 94(3); or

b

in any other case the pawn becomes realisable by the pawnee.

2

Where the debtor or hirer is entitled to apply to the court for a time order under section 129, subsection (1) shall apply with the substitution, for “at the end of the redemption period ” of “after the expiry of five days following the end of the redemption period ”.