OFFICEOF THE ATPORNRt GENERAL OF TEXAS AUST3N
. GERALD C. EIANX ATTORNES?GESERAL
HonorableGeorgeIi.Sheppard Comptrolleroi'PubltiAcoounte ' Austin, Te.xs~
Dear slra : OpinionNo. O-4158 Ret Whetherperson, firm or corporation who engages In businessof lendlng money throuzhthe "bill of sale" .~ aystkm is siibibjecf to proiloloniof Subd. '13, Art. 7047, R.C.S., tit, .6146. R.C.S. and Art. 6148. R.&S.. and i%lated~question& - I
This Is in answer to you??letter of Harch 23, W&2,, whereln.yourequestthe oplnldnof this ,department In responseto the following. questions: : : _., 18 8 peison,?Zrm Oti, "1. corporationwho &gages in the business of' lending money throughthe i 'billof sale' system,sub ect to the provlslcins of ~: subdivision13, Article70i7, R.C.S., Article6146, R.C.S.,and Article6148, R.C.S.?.For example,the 'billof sale' system is used'as follows; "IA,I who wishes to obtain. the. use of a certain sum OS money for a period of thtity (30) dayye, '. deliverssome articleof value.to *B', who will pur- ,'. chase the ortlclefOr~.an E~r&d amoi?nt. 'A' delivers: a ball of sale for the artloIs'to IBl with the .verbal understand- that 'A* will,have.theprivilegeof se- ..purchao%ngthe same articleon or 'beforethirty (30) ~. :" days, at a price equal to ten per.cent more than JA' received for the articlewhen he sold it to 'B'. "2. Has the Comptrollerof"Public Accounts under Artlole6148, RiC+Si~, the autholrlty, .to Inspect'. or examlnethe books or recordsof'a p@rson, firm or ., corporatZon,for~thepus?poso of determtilngwhether or not such person,etc.,,Is en$aged in businessas a pambroker, as definedby Articlo6146, R.W. a and therefore liable for,theoccupationtax levladby Sub-~ ~ divlslon13* Article7047, R.C.S.? ','
"2% Under'what conditionsor cfscuiistanuen * nay this right of,inspectionbo lawfullyexercisedby _~ the Comptrollerof Public Accounts? ,Iirey it be exercised : In instance!5where the .Comptrolldr, in his official dis- ca?etion,has rcaeonablegrounds to believe,under the &$tendS.ngfaCta and olrcum3t3noe3~ that, a p.erson,firm or ^ HonorableGeorge X. Sheppard,Page 2 -corn* G-13158
corporation13 engaged In such buslncss,althoughsuch person,firm or corporation,dcnlen that such buslnese 13 be%ng pursued and refuse3access to the records?" .._. _, .. . ._ Subdivision13, Article7047,R.C.S., provldeothat an nrnual occupationtax of one hundredand fifty dollarsshall be collecte from every p3wnbroker. Article 6146,R.C.S.,definesa gownbrokeras follows: 'A ~poxnbrolcer 1s one who pursuesthe buslneon of lendingmonoy upon Interestand reoolvingupon deposit anypersonal propertyas security.forthe paymentof 3uch. loan end interest.* !Phewords "pawn"and "pledge"mcen the s2rzzthing, 33 Tcx.Al?.687. Under our statuteto pawn or pledgepropcrQ mean3 to &posit It ulth a oredltorto securethe oymentof a debt, WCC of SMth vs. Anderson,27 S.W.775,t Tex. Clv. Apn 18D1nh:&q tkt a transfer of dock. on the books of a corporation*io 3&1m th; paymentof a loan nlth interest,tho*ugh 3uch transfer ~~33 absoluteon ~3 a pI,edgeand not a 3ale, the court sald: lts.,r"acei "The characterof the transactionbetween the parties 13 to be dctermlnedby-their intention,znd it zsttersnot what languege~lsxsed, or what the Form or 'iz txatPer was, If It na8 lnten~edto secure the na - ment of money it m3t be construeaas a pled?+ it necessarythat the conolderatlonbe a pre~e~l3tlng lndebtednes3;it Is aufflclentlf It be a presentadvanoe- ment: (Italicsoura) The f&&s statedby you ungueatlonablypresent a debtor- ;rei;torrelatlonshlpas opposedto the relatlonshlpof vendorland' ez 6; St i'ollo~that under the law,