KRS (4) directs that [a]ll words and phrases shall be construed according to the common and approved usage of language? Moreover, [w]hen language is clear and unambiguous, it will be held to mean what it plainly expresses. Hawley Coal Co. v. Bruce, 252 Ky. 455, 67 S.W.2d 703, 705 (1934). In KRS Chapter 226, the phrase on deposit of personal property is used repeatedly to define and to describe a pawn transaction. We need a 800 dollar loan must, therefore, construe this phrase according to the common, plain meaning of the word deposit.
This appeal followed
A naked bailment of goods to be kept for the depositor without reward, and to be returned when he shall require it?
As used in Chapter KRS 226, deposit clearly requires that personal property be relinquished by its owner and committed to the physical custody of the pawnbroker. In its car title pledge transaction, KTL obtains only a lien on the customer’s car-not physical possession of the vehicle. Furthermore, among its reasons authorizing pawnbrokers to charge the high fees (20% of the unpaid principal balance), KRS explicitly cites the purpose of storing and insuring the property? (Emphasis added). Thus, pursuant to the unambiguous statutory language, the pawnbroker must have actual physical custody of the personal property-not merely constructive possession-in order to charge the interest and fees set out in KRS .
In summary, we hold that KTL was not a pawnbroker as defined by KRS . Hence, it was not exempt from application of KRS Chapter 288 and it operated its business in violation of KRS , KRS , and KRS . As to the allegations that KTL’s business practices violated KRS of the Consumer Protection Act, we refrain from addressing this issue as the circuit court did not. Upon remand, we direct the circuit court to address this issue.
For the foregoing reasons, we vacate and remand the order of the Fayette Circuit Court for entry of judgment consistent with this opinion. Continua a leggere This procedure amounts to a secured loan rather than a true pawn pursuant to KRS Chapter 226