Texas Administrative Code › Title 7 - BANKING AND SECURITIES › Part 5 - OFFICE OF CONSUMER CREDIT COMMISSIONER › Chapter 85 - PAWNSHOPS AND CRAFTED PRECIOUS METAL DEALERS › Subchapter A - RULES OF OPERATION FOR PAWNSHOPS › Division 1 - GENERAL PROVISIONS › Section 85.102 - Definitions

Current through Reg. 49, No. 28; July 12, 2024
Words and terms used in this subchapter that are defined
						in Texas Finance Code, Chapter 371, have the same meanings as defined in that
						chapter unless the context clearly indicates otherwise. The following words and
						terms, when used in this subchapter, will have the following meanings unless
						the context clearly indicates otherwise.
(1) Bank deposits--Cash on deposit in banks
					 or in other federally insured depository institutions. The value of deposits
					 will be reduced by any taxes or penalties that would be due and payable if the
					 funds were withdrawn on the date of valuation.
(2) Book value--The dollar amount assigned to
					 assets using generally accepted accounting principles (GAAP). In evaluating
					 merchandise inventory, the lower of the cost or the market value of the asset
					 method is generally used when determining book value.
(3) Commissioner--The Consumer Credit
					 Commissioner of the State of Texas as defined in Chapter 14 of the Texas
					 Finance Code.
(4) Facility--The
					 physical space used or proposed for the use in the operation of a pawnshop.
(5) Law enforcement agency--An
					 agency of government having jurisdiction over ensuring compliance with the
					 criminal statutes where the pawnshop is physically located.
(6) Merchandise inventory--Tangible personal
					 property held by a pawnbroker or applicant for immediate sale in the pawnshop
					 or proposed pawnshop.
(7)
					 Month--The period from a date in one month to the corresponding date in the
					 succeeding month. If the succeeding month does not have a corresponding date,
					 the month ends on the last day of the succeeding month.
(8) OCCC--The Office of Consumer Credit
					 Commissioner of the State of Texas.
(9) Parent entity--A direct owner of a
					 licensee or applicant.
(10)
					 Pawnbroker--Has the meaning provided by Texas Finance Code, §
											RSA
					 371.003(6), and includes a
					 person who has an ownership interest in a pawnshop as shown in an application
					 for a pawnshop license filed with the OCCC.
(11) Pawnshop employee license program--The
					 optional program for licensing pawnshop employees described by Texas Finance
					 Code, Chapter 371, Subchapter C.
(12)
											 Pledged goods--Tangible personal property
					 held by a pawnbroker as collateral for a pawn loan and that has not become the
					 property of the pawnbroker by a taking into inventory due to non-payment of the
					 loan.
(13)
											 Principal party--An adult individual
					 with a substantial relationship to the proposed business of the applicant. The
					 following individuals are principal parties:
(A) a proprietor;
(B) general partners;
(C) officers of privately held corporations,
					 including the chief executive officer or president, the chief operating officer
					 or vice president of operations, the chief financial officer or treasurer, and
					 those with substantial responsibility for lending operations or compliance with
					 the Texas Pawnshop Act;
(D)
					 directors of privately held corporations;
(E) individuals associated with publicly held
					 corporations designated by the applicant as follows:
(i) officers as provided by subparagraph (C)
					 of this paragraph (as if the corporation was privately held); or
(ii) three officers or similar employees with
					 significant involvement in the corporation's activities governed by the Texas
					 Pawnshop Act. One of the persons designated must be responsible for assembling
					 and providing the information required on behalf of the applicant and must sign
					 the application for the applicant;
(F) voting members of a limited liability
					 corporation;
(G) shareholders
					 owning 5% or more of the outstanding voting stock;
(H) trustees and executors; and
(I) individuals designated as a principal
					 party where necessary to fairly assess the applicant's financial
					 responsibility, experience, character, general fitness, and sufficiency to
					 command the confidence of the public and warrant the belief that the business
					 will be operated lawfully and fairly as required by the commissioner.