Occupations: pawnbrokers; allowable rate of interest changed by pawnbrokers, increase. Amends secs. 8 & 9 of 1917 PA 273 (MCL 446.208 & 446.209). TIE BAR WITH: HB 4115'25

HB 4116 increases the maximum allowable monthly interest rate for pawn loans in Michigan from 3% to 5%, directly affecting pawnbrokers (who may now charge up to 5% per month) and borrowers (who face higher potential costs). The bill amends the warning notice required on pawn contracts to reflect the new 5% rate limit, stating that loans exceeding this rate are void and borrowers can reclaim their items. It also maintains the $3 monthly storage fee for unencumbered items and prohibits charging interest in advance or compounding. The law updates existing regulations without changing other provisions like the minimum 50-cent interest requirement.