Upon default in the payment of any loan, a pawnbroker may sell the pledge upon the conditions contained in this section.

A pawnbroker may sell a pledge at private sale for an amount not less than that agreed to by the pledger, which amount shall be stipulated on the pawn ticket and shall not be less than one hundred twenty-five per cent (125%) of the amount of the loan. A pledge which cannot be sold at private sale at the minimum price agreed to by the pledger must be sold at public auction.

No unredeemed pledge may be sold before the expiration of ninety (90) days after the due date of the loan unless otherwise specifically authorized in writing by the pledger. This authority to sell an unredeemed pledge prior to the expiration of ninety (90) days after the due date of the loan must be given by the pledger on a date subsequent to the due date of the loan.

An unredeemed pledge shall be sold within twelve months of the due date of a loan. No interest or charges permitted under this act may be collected on a loan after the expiration of twelve months of the due date of a loan, whether the loan is renewed, or the loan is paid and the pledge redeemed. Where the pawnbroker has failed to sell the pledge within six months of the due date of the loan, no such interest or charges may be computed for the period after six months of the due date of a loan in determining the surplus due the pledger if a pledge is sold subsequent to six months after the due date of a loan.