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You 'pawn' your item. You hand over a ring, or an electric drill, or a guitar or anything else that might be of some value, and you walk away with a fistful o' dollars. Then, assuming you repay the loan ? plus the interest and fees ? in the next few weeks, the pawnbroker returns your property.
As stated, both refer to the exchange of an item for financial gain. However, selling means you also relinquish your ownership of the item. With pawning, you can get the item back, as long as you pay back the loan you borrowed.
A pawn shop loan is an agreement in which you offer an object, such as a piece of jewelry, and take a cash payment on a percentage of its value. The pawn shop owner agrees to hold your item for a specific period of time, and you agree to pay back the loan, before that period ends.
The typical pawn transaction is as follows. A person (the pawn debtor) transfers to the pawnbroker an item of personal property, such as jewelry, in exchange for a loan of money up to $2000 from the pawnbroker. The debtor receives a pawn ticket for the item.
Pawn. v. to pledge an item of personal property as security for a loan, with the property left with the pawnbroker.
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