Section 85.405 - Pawn Transaction(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, RSA 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, § RSA 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 § RSA 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, § RSA 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, § RSA 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. (1) Cannot require separate transactions if pawn service charge over maximum. Items usually sold as a set in a retail transaction or pledged together with their accessories may not be required to be split into separate transactions or that they be pledged separately where the result would be a total pawn service charge over the legal maximum for the single transaction. (2) Pawn service charge for separate transactions. If items usually sold as a set in a retail transaction or pledged together with their accessories are split into separate transactions, the effective rate of the separate transactions must not be greater than the rate a single transaction would have produced. (3) Items pledged on separate days. Items that may usually be sold as a set in a retail transaction or pledged together with their accessories, but which are pledged on separate days will not normally be considered to fall within the provisions in paragraph (2) of this subsection. (4) Pledgor requests separate transactions. If a pledgor requests separate pawn transactions on items usually sold as a set in a retail transaction or pledged together with their accessories, a notation of that request in the description field of the pawn ticket must be made and will not normally be considered to fall within the provisions in paragraph (2) of this subsection. (h) Alphabetical file of pawn tickets. Either an automated or a manual system capable of allowing searches utilizing the pledgor's name in the case of a lost or destroyed pawn ticket must be maintained. 7 Tex. Admin. Code § 85.405
The provisions of this §85.405 adopted to be effective October 1, 2000, 25 TexReg 9435; amended to be effective November 8, 2001, 26 TexReg 8797; amended to be effective February 1, 2006, 30 TexReg 8856; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3398; Amended by Texas Register, Volume 41, Number 45, November 4, 2016, TexReg 8819, eff. 1/1/2017; Amended by Texas Register, Volume 43, Number 52, December 28, 2018, TexReg 8588, eff. 2/1/2019