(a) Pawn Ticket.
(1) Prescribed form.
(A) The front and back of the original pawn ticket
are prescribed in the following two figures. Figure 1 contains the
front of the original pawn ticket, and figure 2 contains the back
of the original pawn ticket. The original portion of the pawn ticket
must be given to the pledgor when the pawn transaction is made.
Attached Graphic
Attached Graphic
(B) The prescribed back of the printed copy of the
pawn ticket, as shown in the following figure, must be maintained
in the numerical pawn ticket file.
Attached Graphic
(2) Modifications of pawn ticket.
(A) Spacing. Spacing of the forms prescribed may be
modified.
(B) Military Lending Act disclosure. A licensee may
modify the pawn ticket to add the mandatory disclosure to a covered
borrower under the Department of Defense's Military Lending Act Rule,
32 C.F.R. §232.6. Alternatively, a licensee may provide the mandatory
disclosure on a separate form.
(C) Other changes. Any other changes to the prescribed
forms must be approved, in writing, in advance, by the commissioner.
(3) Information required on pawn ticket. The pawn ticket
must contain all information required in Texas Finance Code, §371.157,
and satisfy the requirements of the Truth in Lending Act, 15 U.S.C. §§1601
- 1667f, and Regulation Z, 12 C.F.R. Part 1026. The pawn ticket must
disclose the date that is at least 30 days following the maturity
date, and it must be captioned "last day of grace." A pawnbroker may,
at the pawnbroker's option, choose to extend the last day of grace.
The system used to create and store information about pawn transactions
must include alphabetical or numerical characters sufficient to identify
the pawnshop employee or owner writing the pawn ticket and handling
the renewal or redemption of the pawn transaction. All parts of the
pawn ticket form must be sequentially numbered by the automated information
system unless produced manually in accordance with the requirements
of §85.402(f) of this title (relating to Recordkeeping).
(4) Prescribed copies.
(A) Original copy. The top original copy is to be given
to the pledgor. The original copy is to be presented upon redemption
and filed with the numerical file of redemptions and renewals. The
original copy of the pawn ticket, presented to the pawnbroker upon
redemption of the pledged goods and renewal of the pawn transaction,
may be kept in chronological order by date if through the use of an
automated system, the records pertaining to the pawn transaction may
be readily located. Additionally, the original copy of the pawn ticket
may be maintained in the numerical pawn ticket file.
(B) Alphabetical copy. The alphabetical copy is for
use in maintaining an alphabetical index. The alphabetical copy may
be omitted where an automated system is capable of producing the alphabetical
index.
(C) Law enforcement copy. The law enforcement copy
is for the use of law enforcement as defined in §85.406 of this
title (relating to Law Enforcement Reporting). If the law enforcement
agency is given all of the information on the pawn ticket electronically,
this copy may be omitted.
(D) Hard card. The hard card is maintained in a sequential
file in the records of the pawnshop. To comply with an investigation
by a law enforcement agency, a pawnbroker may provide the hard card
of the pawn ticket to law enforcement, as long as a copy of the hard
card is maintained in the sequential file of the pawnbroker.
(5) Legible information. Reasonable procedures must
be in place to ensure that all information on the original pawn ticket
and all copies of the pawn ticket are legible.
(6) Identification of pledgor or seller.
(A) Proper identification. The pledgor must present
a proper form of identification at the time of the pawn transaction.
For purposes of this paragraph, any form of identification found in
Texas Finance Code, §371.174(b) that is either current or has
not been expired for more than one year will be considered acceptable.
A Texas handgun license issued under Texas Government Code, Chapter
411 is an acceptable form of identification, as provided by Texas
Business and Commerce Code, §507.001(a). A pawnbroker is not
required to take a photograph of any pledgor or seller for purposes
of identification.
(B) Prohibited identification. The following forms
of identification are not acceptable for the identification of a pledgor
or seller:
(i) a driver's license issued by a foreign country;
(ii) a state identification card issued by an entity
other than the Texas Department of Public Safety or comparable agency
in another state;
(iii) an inmate or parolee identification card; and
(iv) a social security card.
(7) Signature line. A pawn ticket must contain a signature
line for the pledgor. Upon issuance of a pawn ticket, the pledgor
must sign on the signature line marked for the pledgor.
(b) Term of transaction. The maturity date of a pawn
transaction may not be greater than one month from the date of the
transaction. The "last day of grace" is a date no less than thirty
days following the maturity day. A pawnbroker may, at the pawnbroker's
option, choose to extend the last day of grace. The pawn loan will
be considered to be an open pawn loan until the expiration of the
last day of grace or until the pawnbroker exercises the option to
take the pledged goods into inventory as provided in §85.414
of this title (relating to Forfeiture of Pledged Goods), whichever
is later.
(c) Identification of pledged goods. A unique label
for each item pledged must be produced in order to ensure that the
correct item is returned to the pledgor.
(d) Voided pawn tickets. Voided pawn tickets must be
clearly marked "VOID" or a similar phrase indicating that the pawn
ticket was voided. All printed parts of a voided pawn ticket except
those produced for local law enforcement must be retained and filed
with the fourth part of the pawn ticket. The printed part must be
made available to a local law enforcement agency.
(e) Standards for describing goods. Pledged goods and
purchases must be accurately and fully described. All serial numbers,
including vehicle identification numbers and boat hull numbers that
are reasonably available, must be accurately entered on required documents.
Any visible owner applied number or other identifying marks must be
recorded on the original pawn ticket and all copies, and entered in
the system that produces the pawn ticket. As applicable, the item
type, brand, make, model number, engraving, inscriptions, color, size,
length, unique markings, and design must be recorded. A pawnbroker
is not required to take a photograph of any pledged or purchased goods
for purposes of describing goods to comply with this subsection. A
record of the additional descriptors in paragraphs (1) - (4) of this
subsection must also be included if applicable.
(1) Firearms. Descriptions of firearms must include
caliber and type of firearm (e.g., handgun, rifle, shotgun, black
powder weapon).
(2) Jewelry. Descriptions of jewelry must include weight,
type of metal including purity, style, stones, and the gender of the
person for which the item was manufactured. Stones must be described
as to type, including results of electronic testing, color as apparent
to the untrained eye, shape, number, size, and approximate weight.
Class ring descriptions must also include school name and class year.
(3) Motor vehicles. Descriptions of motor vehicles
must include the year of manufacture, model, body style, license plate
number, and state of registration.
(4) Accessories. Descriptions of accessories must include
the applicable information required within this subsection.
(f) Titled goods.
(1) Negotiation. Goods pledged on a pawn transaction,
a motor vehicle, or other property having a certificate of title may
be accepted. When entering into the pawn transaction, the pawnbroker
must not permit or require the owner to endorse the title to effect
the transfer.
(2) Limited power of attorney. If a pawn transaction
involves titled property, the owner may be required to sign a power
of attorney form appointing the pawnbroker as the owner's attorney-in-fact
for the sole purpose of transferring the ownership of the property
in the event the pledgor fails to pay the pawn transaction.
(3) Documentation. A notation of the location of powers
of attorney, certificates of title, and registration receipts must
be made on the printed copy of the ticket in the numerical pawn ticket
file or an alternative filing method must be provided to facilitate
retrieval of these documents.
(g) Items usually sold as a set in a retail transaction
or pledged together with their accessories.
Cont'd... |