Section 4A(3) in The Karnataka Pawnbrokers Act, 1961
(3)For the purposes of sub-section (2), the amount of security payable by a licensee in a year shall be determined on the basis of the amount invested by him in the business during the previous year and such security deposit shall not carry any interest.Provided ***Provided further that in the case of a new licensee or a person who has a licence only for a portion of the preceeding year the amount of security shall be determined on the basis of a declaration in the prescribed form as to the amount which he is likely to invest during the year.
