Pawnbrokers give loans to people who deposit their collateral with the pawnbroker until they pay back their loans.
Typical collateral ranges from jewelry, to cars, to electronic equipment to guns.
The permanent provisions also require pawnbrokers to comply with all of the federal reporting requirements applicable to all gun dealers. A pawnbroker may run an NICS check on an individual when he or she presents a gun as collateral for a loan, but the pawnbroker is not required to do so. 2 California, which has more restrictive gun laws than the Brady Law, imposes its sale requirements on all pawnbroker transactions. Like all other FFLs, a pawnbroker may not transfer a gun to anyone he knows or has reasonable cause to believe is prohibited from purchasing or receiving a gun. Therefore, if a pawnbroker has possession of a gun when he learns that the person attempting to pawn it has failed the background check, he may not return the gun to the person attempting to pawn the gun.