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 4 - OPERATION OF PAWNSHOPS
Section 85.407 - Memorandum of Extension

(a) Prescribed form and content. If an extension of a pawn transaction is made, a written memorandum must be used to document the extension of the maturity date. The memorandum of extension must be provided in one of the two prescribed formats as provided in Figure: 7 TAC § 85.407(a)(1) or Figure: 7 TAC § 85.407(a)(2) of this section. The printed portions of the memorandum must be legible and all the information must be reproduced on all parts.

(b) Modification of prescribed forms. Modification of the spacing of the forms is allowed. If a pawnbroker uses the form provided in Figure: 7 TAC § 85.407(a)(1), the information regarding the amount due at redemption may be deleted. Other changes to the forms must be approved by the commissioner in writing and in advance.

(c) Distribution of copies. The original memorandum must be given to the person paying for the extension or, if paid by mail, sent to the pledgor. The location of all memorandum copies relating to a particular pawn ticket must be documented:

(d) Pawn service charge. The daily rate of finance charge may not exceed 1/30th of the finance charge shown on the pawn ticket. The amount a pledgor pays for the extension may not exceed the maximum of the total amount that could be charged divided by the daily rate. The pledgor and pawnshop may negotiate any amount of pawn service charge for the extension not to exceed the maximum amount authorized by Texas Finance Code, Chapter 371, Subchapter D.

(e) Early redemption. If a pledgor negotiates an extension and subsequently pays a pawn transaction in full prior to the original maturity date, the original terms of the original pawn transaction are restored. The maximum pawn service charge that may be collected is calculated from the date of the original transaction to the date of redemption. Any charge collected for the extension must be credited against the total pawn service charge. Any remaining balance may be collected from the pledgor.

(f) Renewal or extension of open pawn transaction. Any open pawn transaction may be renewed by payment of pawn service charges accrued to the date of renewal or may be extended, unless the pawn ticket provides that the pawn transaction is not eligible for renewal or extension.