Jewelers and Pawnbrokers
What's a Pawn?
If the pawnbroker and the borrower agree on a loan amount the pawn paperwork is completed and the collateral is held in possession by the pawnbroker who securely stores it.
When the loan becomes due (that's that 30 to 90 day term we mentioned at the top) the borrower may redeem the collateral by repaying the loan amount, plus any interest and fees due the pawnbroker. By mutual agreement, the loan may be extended, for an additional term, by payment of any interest and fees that are due.
Should the borrower fail to either redeem or extend the pawn prior to the maturity date, the collateral becomes the property of the pawnbroker. (Nationally, almost 3/4 of all pawn loans are redeemed.)