Words and terms used in this subchapter that are defined in
Texas Finance Code, Chapter 371, have the same meanings as defined
in that chapter unless the context clearly indicates otherwise. The
following words and terms, when used in this subchapter, will have
the following meanings unless the context clearly indicates otherwise.
(1) Bank deposits--Cash on deposit in banks or in other
federally insured depository institutions. The value of deposits will
be reduced by any taxes or penalties that would be due and payable
if the funds were withdrawn on the date of valuation.
(2) Book value--The dollar amount assigned to assets
using generally accepted accounting principles (GAAP). In evaluating
merchandise inventory, the lower of the cost or the market value of
the asset method is generally used when determining book value.
(3) Commissioner--The Consumer Credit Commissioner
of the State of Texas as defined in Chapter 14 of the Texas Finance
Code.
(4) Facility--The physical space used or proposed for
the use in the operation of a pawnshop.
(5) Law enforcement agency--An agency of government
having jurisdiction over ensuring compliance with the criminal statutes
where the pawnshop is physically located.
(6) Merchandise inventory--Tangible personal property
held by a pawnbroker or applicant for immediate sale in the pawnshop
or proposed pawnshop.
(7) Month--The period from a date in one month to the
corresponding date in the succeeding month. If the succeeding month
does not have a corresponding date, the month ends on the last day
of the succeeding month.
(8) OCCC--The Office of Consumer Credit Commissioner
of the State of Texas.
(9) Parent entity--A direct owner of a licensee or
applicant.
(10) Pawnbroker--Has the meaning provided by Texas
Finance Code, §371.003(6), and includes a person who has an ownership
interest in a pawnshop as shown in an application for a pawnshop license
filed with the OCCC.
(11) Pawnshop employee license program--The optional
program for licensing pawnshop employees described by Texas Finance
Code, Chapter 371, Subchapter C.
(12) Pledged goods--Tangible personal property held
by a pawnbroker as collateral for a pawn loan and that has not become
the property of the pawnbroker by a taking into inventory due to non-payment
of the loan.
(13) Principal party--An adult individual with a substantial
relationship to the proposed business of the applicant. The following
individuals are principal parties:
(A) a proprietor;
(B) general partners;
(C) officers of privately held corporations, including
the chief executive officer or president, the chief operating officer
or vice president of operations, the chief financial officer or treasurer,
and those with substantial responsibility for lending operations or
compliance with the Texas Pawnshop Act;
(D) directors of privately held corporations;
(E) individuals associated with publicly held corporations
designated by the applicant as follows:
(i) officers as provided by subparagraph (C) of this
paragraph (as if the corporation was privately held); or
(ii) three officers or similar employees with significant
involvement in the corporation's activities governed by the Texas
Pawnshop Act. One of the persons designated must be responsible for
assembling and providing the information required on behalf of the
applicant and must sign the application for the applicant;
(F) voting members of a limited liability corporation;
(G) shareholders owning 5% or more of the outstanding
voting stock;
(H) trustees and executors; and
(I) individuals designated as a principal party where
necessary to fairly assess the applicant's financial responsibility,
experience, character, general fitness, and sufficiency to command
the confidence of the public and warrant the belief that the business
will be operated lawfully and fairly as required by the commissioner.
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Source Note: The provisions of this §85.102 adopted to be effective September 5, 1999, 24 TexReg 6712; amended to be effective October 1, 2000, 25 TexReg 9211; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392; amended to be effective January 1, 2017, 41 TexReg 8815; amended to be effective October 1, 2019, 44 TexReg 4719 |