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. (1) Memorandum of extension including amount due at redemption. The following figure provides an acceptable memorandum of extension that includes information regarding the amount due at redemption. Information regarding the amount due at redemption is optional on this form and may be deleted as authorized by subsection (b) of this section. Attached Graphic
(2) Memorandum of extension not including amount due at redemption. The following figure provides an acceptable memorandum of extension that does not include information regarding the amount due at redemption. Attached Graphic
(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: (1) in the electronic system (if the memorandum of extension form can be reproduced in its actual original printed format); or (2) in the numerical pawn ticket file. (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.7 Tex. Admin. Code § 85.407
The provisions of this §85.407 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 3398