 For many years Stockholm had a municipal establishment that charged 10% for loans paid out of the city funds.The cost of administration was so great that the establishment suffered an annual loss, and so it was abolished in 1880 when a private company called the "Pant Aktie Bank" ('pawn bond bank') formed, with rivals soon following.The money was lent for three months, and at the end of five months the pledge, if unredeemed, was sold by auction under very carefully prescribed conditions.