It is also obligatory for any articles on which a sum of 1,000 francs or more has been advanced. By virtue of article 81 of the Regu lations of 30 June 1865, a borrower renewing his loan may demand to see his pledge so as to sat isfy himself as to the proper state of preserva tion of his property. The Montpellier and Douai pawnshops do not grant renewals, but they give every facility for payment.
Reimbursement by Instalments.— Borrow ers have the option of redeeming their loan be fore its expiration, by instalments, which, how ever, must not be less than an amount of one franc and which bear interest at the same rate as that charged by the pawnshop.
These instalments constitute what is called a savings-account, and may be used for the par tial liberation of the loan, or the renewal thereof.
Payments made by instalment do not, how ever, prevent the property from being sold on the expiration of the loan, even if the amounts paid are equal to the sum loaned. The admin istration is under no obligation to supervise these operations and it is, therefore, incumbent on the borrower to take the necessary steps to redeem his pledge or renew the loan, other wise his property will he sold.
Sales.— Should the loan not be redeemed or renewed at due date, the pledge is sold. Sales take place after the drawing up of an order for pledges to be realized, which order becomes pub licly effective upon executive order of the presi dent. Sales are publicly announced 10 days in ad vance, and the borrower is also advised when the amount of the loan exceeds 16 francs. No opposition can be made to the sale, but if the borrower so requests, the administration usu ally grants a respite of three months. Sales are always subject to the supervision of public ap praisers, even at the gratuitous pawnshop of the 'Fondation MazureP) of Lille. An excep tion exists, however, in favor of the gratuitous pawnshop of Nice, where sales are made by sworn experts assisted by the director of the pawnshop, the justice of the peace and the comptroller. As previously stated, if the amount realized by the sale is insufficient to re imburse the pawnshop, the public appraisers must make up the deficit between their valua tion and the sale price.
As we have pointed out in Part I, par. 2, the law of 24 June 1851 lays down the conditions under which borrowers are authorized them selves to apply for the sale of their security.
Bonuses.—The proceeds of the sale are util ized in the first place to reimburse the pawn shop. If there is any excess it is called a "boni* or bonus, and must be paid over to the borrower (Regulations of 30 June 1865, art.
92). These bonuses are held at the disposal of the parties interested, but if not claimed within three years they revert to the adminis tration (article 93 of same regulations). A claim for a bonus must be accompanied by the pawnticket to bearer. It is not the business of the pawnshop officials to inquire by what means the pawnticket came into the possession of the party presenting it unless it forms the object of a legal attachment. Duval, 'Manuel de Legislation,' ¶ 1727.
Nature of the Privilege —Although the privilege of making loans on personal secu rity is reserved for pawnshops it must not be concluded that this is absolutely exclusive. The Civil Code devotes an entire chapter (articles 2073 and following) to the regulations govern ing the constitution of a private security. But the prescriptions of the Civil Code are very se vere and little suited to facilitate this kind of transaction. A public act, or act by privy seal, registered, is required except in cases where the transaction does not exceed a sum of more than 150 francs. Moreover, the secured cred itor may obtain payment preferentially on the effects constituting the security, but in this case he must obtain an order from the courts that such effects shall remain his property in pay ment, and this up to the amount of a valua tion made by experts, or that such effects be sold by auction. These protective measures are not, however, the only ones prescribed by the law. Loans on security made between pri vate parties must be distinct and separate transactions, for, as v‘ e have pointed out, arti cle 411 of the Penal Code deals severely with persons carrying on business in non-authorized loaning establishments. Jurisprudence has al ways given the broadest interpretation to the clause contained in the Penal Code in this re spect, admitting, notably, that the fact of hav ing loaned 'money to several people without opening a duly authorized loaning establish ment (even without interest) is sufficient to render one liable to the penalties stipulated in article 411 of said Penal Code. On the other hand, pawnshops enjoy an especially favorable regime, such as immunity from fiscal charges and stamp duties, and above all they have the right to sell the articles deposited as security without being obliged to observe the prescrip tions of article 2078 of the Civil Code. It must be admitted that the privilege for making loans on security granted to pawnshops gives them a veritable monopoly in this respect, even as regards the constituting of a private security.