BUSINESS" MEAN:
"(D) OING OR PERFORMING A SERIES OF ACTS WHICH OCCUPIES THE TIME, ATTENTION, AND LABOR OF PERSONS FOR THE PURPOSE OF LIVELIHOOD, PROFIT OR PLEASURE, BUT THE DOING OF A SINGLE ACT PERTAINING TO ONE PARTICULAR BUSINESS WILL NOT BE CONSIDERED CARRYING ON TRANSACTING OR DOING BUSINESS AS CONTEMPLATED IN THE STATUTES."
PIC OIL COM ANY INC. V. GRISHAM, 702 P. 2D 28, 30 (01, 1985).
THEREFORE, BECAUSE THE BANKS ARE NOT "ENGAGED IN THE BUSINESS," THEY ARE NOT PAWNBROKERS WITHIN THE STATUTORY MEANING.
SECOND, THIS TRANSACTION IS NOT THE TYPE OF TRANSACTION WHICH THE LEGISLATURE INTENDED TO BE REGULATED UNDER THE ACT. RATHER, THE LEGISLATURE INTENDED TO REGULATE TRADITIONAL PAWN TRANSACTIONS. ONE COURT HAS DEFINED THE TRANSACTIONS THUS:
IN A TYPICAL PAWNBROKING LOAN, THE PAWNBROKER LENDS MONEY TO HIS CUSTOMER IN RETURN FOR A PLEDGE OF PERSONAL PROPERTY. THE CUSTOMER CAN RECLAIM THE PLEDGED PROPERTY BY REPAYING THE PRINCIPAL OF THE LOAN WITH INTEREST. THE PAWNBROKER MAY SELL THE PROPERTY TO THE GENERAL PUBLIC IF THE CUSTOMER DOES NOT REPAY THE LOAN WITHIN A PREDETERMINED PERIOD OF TIME.
RHODES V. HARTFORD, 513 A.2D 124, 128 (CONN. 1986)
CONVERSELY, IN TRANSACTIONS OF THE TYPE ABOUT WHICH YOU INQUIRE, THE CUSTOMER IS PERSONALLY OBLIGATED ON A NOTE WHICH THE BANK COLLATERALIZES BY TAKING A SECURITY INTEREST IN PERSONALTY. THE BANK MAY NOT SELL THE PROPERTY WITHOUT SUING ON THE NOTE AND FOLLOWING PROPER STATUTORY PROCEDURES. 12A O.S. 9-504 (1981), ET SEQ. PAWNBROKERS, UNLIKE BANKS, ARE SPECIFICALLY PROHIBITED FROM MAKING AN AGREEMENT REQUIRING THE PERSONAL LIABILITY OF A CUSTOMER IN CONNECTION WITH A PAWN TRANSACTION. 59 O.S. 1511(B) (1981).
THEREFORE, IT IS MY INFORMAL OPINION THAT THE TRANSACTION UNDER CONSIDERATION IS NOT A PAWN TRANSACTION AS DEFINED BY THE ACT, AND THAT BANKS ARE NOT REQUIRED TO OBTAIN A LICENSE UNDER THE ACT. WE ALSO NOTE THAT THE TE AS ATTORNEY GENERAL HAS RULED THAT BANKS WHICH, UNDER NORMAL BANKING PRACTICES, TAKE PHYSICAL POSSESSION OF TANGIBLE PERSONAL PROPERTY AS COLLATERAL FOR LOANS, ARE NOT REQUIRED TO OBTAIN A PAWNBROKER'S LICENSE. A.G. OPIN. NO. H-131 (TX.1978).
(JANE F. WHEELER)