| (a) Minimum records. Books and records must be sufficient
to demonstrate compliance with Texas Finance Code, Chapter 371, and
this subchapter such that the books and records:
(1) allow for the documentation of all transactions
to the extent that any single transaction may be re-created; and
(2) allow for the documentation of any set of transactions
governed by Texas Finance Code, Chapter 371, to the extent that the
set of transactions may be re-created.
(b) Record retention. Any required book, record, or
instrument pertaining to a transaction, whether paper or electronic,
must be available for a minimum of two years from the date of the
last recorded event. Records must be available for inspection during
normal business hours by the commissioner's authorized representative.
For purposes of this section, the date of the last recorded event
is the date a pledged item is taken into inventory, redeemed, renewed,
seized, or voided.
(c) Compliance file. A separate file must be maintained
at each licensed location for all communications from the OCCC and
for copies of correspondence and reports addressed to the OCCC. This
file must include, at a minimum, electronic or paper copies of the
current Texas Finance Code, Chapter 371, the last three examination
reports, correspondence relating to compliance issued in the last
two years, and current rules issued by the OCCC. A licensee will be
considered to have maintained copies of the Texas Finance Code and
current rules by having access to the websites containing the official
versions of the current Texas Finance Code and the current Texas Administrative
Code. A licensee will be considered to have maintained copies of some
or all of the last three examination reports if those reports were
issued electronically by the OCCC.
(d) Recordkeeping systems. A licensee must use a reviewed
software system unless the licensee utilizes either a manual system
that complies with subsection (f) of this section or a proprietary
software system that is not sold or distributed to other licensees,
unless the other licensees are affiliates of the licensee operating
the proprietary system. All reviewed software systems in place on
the effective date of this rule are not required to submit for re-review.
A list of reviewed non-proprietary software systems that may be used
by licensees will be maintained on the OCCC's website. A licensee
or the software vendor must provide documentation of the non-proprietary
software system to the OCCC that explains how the required information
provided by subsection (e) of this section is maintained within the
system.
(e) System documentation.
(1) Required information. A licensee or vendor seeking
review of a system must make available a complete and detailed written
description of the system proposed to be utilized, including:
(A) a statement specifying whether the system will
be used in its entirety;
(B) operating manuals;
(C) instructions;
(D) a copy of the software to be used; and
(E) a full description of backup systems in place that
will ensure business continuity and the protection of pledged goods.
(2) Amendments. Any change to a software system is
required to meet the minimum reporting requirements as established
by this section.
(3) Who must file. A non-proprietary software vendor
may make a filing on behalf of a pawnbroker. It is the pawnbroker's
responsibility, however, to ensure the system was reviewed before
utilizing the system.
(4) Removal of reviewed status for non-proprietary
software systems. The commissioner may remove a software vendor's
name from the list of Reviewed Non-Proprietary Software Systems upon
finding the system does not provide information as anticipated at
the time of the review or does not comply with this section. Prior
to the removal of the reviewed status for a non-proprietary software
system, a pawnbroker or software vendor will be granted a reasonable
time to make corrective modifications if it can be shown that the
granting of time will not be detrimental to pledgors. Upon withdrawal
of the system from the reviewed list, the use of the system must cease.
(f) Requirements of manual recordkeeping system. In
a manual recordkeeping system, the pawn ticket must be a four-part
form. Manual entries to the top copy must be legible and simultaneously
reproduced on the remaining parts. The form must provide a perforated
stub to be utilized in labeling and identifying pledged goods. Each
part of the pawn ticket form must be numbered sequentially by the
supplier of the pawn ticket form. The stub must be numbered simultaneously
with the same sequential number. The portion of the pawn ticket made
available to local law enforcement may, with the approval of the local
law enforcement agency receiving it, omit the preprinted text of the
pawn ticket. The portion of the pawn ticket maintained in the numerical
pawn ticket file must provide an appropriately designated space for
posting amounts paid on the pawn transaction.
(g) Requirements of electronic recordkeeping system.
In an electronic recordkeeping system, the pawn ticket must be a three-part
form. Entries made to the top copy of the pawn ticket must be legible
and simultaneously reproduced on the remaining parts. The form must
provide a perforated stub to be utilized in labeling and identifying
pledged goods. Each part of the pawn ticket must be numbered sequentially
by the supplier of the pawn ticket form. As an alternative to sequential
numbering by the supplier, the licensee may sequentially number each
pawn ticket in accordance with written policies and procedures (maintained
by the licensee) that ensure the integrity of the numbering system
through appropriate management and accounting controls. The stub and
the three parts of the pawn ticket must be numbered simultaneously
with the same sequential number. The second part of the pawn ticket
(law enforcement copy) may be omitted or properly destroyed (i.e.,
pawn ticket is completely shredded or incinerated) if the pawn and
purchase ticket information is exchanged electronically, directly
or indirectly, with the primary law enforcement agency in the jurisdiction
that the pawnshop is located.
(1) Required electronic information. A pawnbroker who
chooses to maintain pawn and purchase ticket information electronically
must comply with the requirements of Chapter 371 of the Texas Finance
Code and the rules governing electronic records. The information relating
to the dates and amounts of all payments made on the pawn transaction,
the final disposition or status of the pawn transaction (i.e., renewed,
redeemed, voided, forfeited, or seized), and the final disposition
date, must be either manually recorded on the hard card pursuant to
subsection (f) of this section, or electronically stored pursuant
to this subsection. The final disposition or closing date is the date
that the pawn transaction is renewed, redeemed, voided, or the pledged
goods are forfeited by the pledgor or seized by a law enforcement
agency. For the electronic system, the final disposition information
must be stored and accessible for the entire record retention period
required by Texas Finance Code, §371.152(b). If paragraph (2)
of this subsection applies, the loan disposition report and supplemental
loan disposition report must be timely printed or stored as an electronically
imaged or archived record.
(2) Loan disposition report and supplemental loan disposition
report. For purposes of this paragraph, a calendar month means every
day from the first day of the month to the last day of the month.
(A) Loan disposition report. The loan disposition report
is a listing of all pawn transactions that were made in a calendar
month. The loan disposition report is printed or stored as an electronically
imaged or archived record and is sorted by using the field of the
date made as recorded on the pawn ticket.
(B) Supplemental loan disposition report. If the pawnbroker
has a practice of extending the maturity date using a memorandum of
extension or if the pawnbroker does not exercise the option to forfeit
pledged goods on the day after the last day of grace recorded on the
pawn ticket, then the pawnbroker must produce a supplemental loan
disposition report. The supplemental loan disposition report is a
listing of all pawn transactions that were closed (i.e., renewed,
redeemed, voided, forfeited, or seized) in a calendar month. The supplemental
loan disposition report must be printed or stored as an electronically
imaged or archived record and is sorted by using the field of the
final disposition or closing date.
(C) Content.
(i) Required information. The loan disposition report
and the supplemental loan disposition report must contain the following:
(I) pawn or loan ticket number;
(II) name of pledgor;
(III) original date made;
(IV) original maturity date;
(V) loan amount or amount financed;
(VI) original pawn service charge;
(VII) final disposition or closing date;
Cont'd... |
