(a) Notice of lost pawn ticket. When oral notification is received from a pledgor that the pledgor's pawn ticket has been lost or stolen, the pledgor must be instructed to give the notice in writing and informed that pledged items may still be taken into inventory after the last day of grace if the pawn transaction is not renewed, redeemed, or extended. The date and time the oral notification was received must be documented. If the pledgor is present in the pawnshop at the time of giving oral notice, the pledgor must be provided with a form to give written notice. If the suggested guideline in subsection (d) of this section is employed, the pledgor who gives oral notification should be informed that without a written statement of the lost pawn ticket, the goods will be surrendered to someone who properly presents the pawn ticket for redemption. A lost pawn ticket statement must be filed in the numerical pawn ticket file.
(b) Record of payment. If a payment is made in connection with the redemption of pledged goods or the renewal of a pawn transaction and a separate lost pawn ticket statement is used, the requirement may be satisfied by recording the payment on the front of the lost pawn ticket statement, as well as the date of the transaction and the amount of money actually received. The lost pawn ticket statement must be filed in the numerical pawn ticket file.
(c) Redemption or renewal procedure. Appropriate procedures must be employed to ensure that only a person with a valid claim to a pledged item is able to redeem that item. Upon receipt of written notice of a lost pawn ticket, the original pawn ticket is void. The written notice of a lost pawn ticket must be signed by the original pledgor or a person with the legal capacity to represent the original pledgor. A person with the legal capacity to represent the original pledgor includes: an administrator or executor of an estate, a person designated as an attorney-in-fact for the original pledgor with a valid power of attorney, or a person appointed by a court of competent jurisdiction. If someone other than the original pledgor signs the written notice of a lost pawn ticket, the pawnbroker must maintain copies of the supporting records (a copy of the will, power of attorney, or court order) in either the original pawn ticket file or the numerical hard card file.
(d) Suggested guidelines. These suggested guidelines are intended to give pawnshops considerable flexibility to fit individual needs while providing some guidance. Modifications to the guidelines may be made without the loss of protection from any liability defense. When oral notification that a pawn ticket has been lost or stolen is received, the pledgor is instructed to give the notice in writing within the next two business days. If a person other than the pledgor presents the pawn ticket in an attempt to redeem the item prior to timely receiving written notice, it is suggested that:
  (1) an immediate attempt to contact the pledgor by telephone be made in order to determine if the presenter has a valid claim to the item;
  (2) a record of identifying information be made in the numerical file of loans, including name, identification number, address, and phone number, of the presenter of the pawn ticket;
  (3) when ownership cannot be immediately determined, a request be made that the presenter of the pawn ticket return in a mutually agreeable time frame to redeem the merchandise and return the original pawn ticket to the holder; and
  (4) all actions taken relating to the situation be documented in a clear manner to accurately record the events.

Source Note: The provisions of this §85.410 adopted to be effective October 1, 2000, 25 TexReg 9435; amended to be effective September 19, 2005, 30 TexReg 5337; amended to be effective June 7, 2010, 35 TexReg 3471; amended to be effective July 1, 2014, 39 TexReg 3392