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E. Usury Statute. Minnesota Statutes Section 334.01. <br /> • <br /> This chapter on moneyand rates of interest maynot 1 to pawnbrokers <br /> P apply <br /> who "loan" money on property. The pawnbroker-pledgor relationship may <br /> not constitute a "contract" under this statute, because the pledgor does not <br /> need to pay back the money. <br /> VI. CONCLUSION <br /> Although much of the case law regarding pawnbrokers is quite dated, it <br /> nevertheless provides a firm foundation for the government's strict regulation of <br /> the activities of pawnbrokers. A comprehensive regulatory scheme can prevent <br /> pawnshops from facilitating criminal activity by others. Such a scheme can also <br /> provide a tool to local police departments in recovering stolen property and <br /> apprehending thieves. The law gives cities and states much discretion in regulating <br /> and placing licensing restrictions on pawnbrokers, primarily because courts take <br /> judicial notice of the fact that pawnbroking operations can facilitate the <br /> commission of crimes. A long history of strict regulation of this industry by <br /> government also allows courts to reach the conclusion that expectations of <br /> business privacy by pawnbrokers are more limited. <br /> 410 <br /> 16 <br />