(a) Monitoring of transactions and customers.
(1) Type of goods offered. An item on which the serial
number has obviously been defaced, altered, or removed may not be
taken into pawn. An item previously taken in pawn in which the serial
number has been previously documented may be repawned if proper documentation
exists and can be accurately traced to the same item if the serial
number on the item is missing, worn, defaced, or blurred due to normal
wear and tear.
(2) Written policy. A written policy must be established
for the acceptance of pledged goods. The policy must expressly identify
situations which may involve the attempted pawn of stolen goods and
must list procedures to be followed in order to avoid the acceptance
of stolen goods. A copy of the policy must be provided to each employee.
Each employee must sign a document acknowledging receipt and understanding
of the policy. A copy of each signed receipt must be placed in the
compliance file. Alternatively, a pawnshop may employ another systematic
method of filing receipts that allows for the appropriate retrieval
of records for inspection. A model policy may be found in the following
figure.
Attached Graphic
(3) Acceptance of uniquely marked goods. An item may
not be accepted into pawn that is clearly marked in a manner that
indicates ownership by a third party (e.g., rental company, motel,
governmental body). An item marked in a manner that indicates ownership
by a third party may, however, be accepted into pawn when the pledgor
produces a valid receipt or other evidence of ownership of the item
or the pawnbroker obtains independent verification. Independent verification
may include records of phone calls to the third party with name, time,
and verbal approval that are documented on the pawn ticket.
(4) Responsibility. The pawnbroker must monitor goods
in order to identify and prohibit transactions involving stolen goods
and must make reasonable efforts to avoid accepting stolen goods.
(5) Coordination with law enforcement. A pawnbroker
must work with law enforcement agencies regarding matters relating
to stolen goods and must aid in the prompt resolution of an official
investigation by providing, if available:
(A) information to appropriate law enforcement officers
(e.g., additional description of pledged and purchased goods, a physical
description of the pledgor or seller, copies of all documents surrounding
the transaction);
(B) physical inspection of the goods;
(C) copy of any surveillance recording relating to
the transaction;
(D) access to pawnshop employees for information; and
(E) cooperation with any court order.
(b) Documentation of goods not lawfully possessed by
pledgor. Certain information must be maintained concerning pledged
goods that a pledgor did not have the right to possess. The information
may be recorded in the numerical pawn ticket file or in the automated
records of the pawn transaction. Each record must be readily identifiable
and available for examination. The record must include:
(1) pawn ticket number;
(2) specific goods concerned;
(3) person to whom the goods were released; and
(4) terms and conditions under which possession of
the goods was relinquished (e.g., redeemed by owner, voluntarily returned
without compensation, seized by law enforcement officers, awarded
to another following a judicial hearing).
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Source Note: The provisions of this §85.418 adopted to be effective October 1, 2000, 25 TexReg 9435; amended to be effective September 19, 2005, 30 TexReg 5337; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392 |