Inspections and Examinations of Pawnshop in Texas

Texas Statutes
Finance Code
Title 4. Regulation Of Interest, Loans, And Financed Transactions
Subtitle C. Pawnshops
Chapter 371. Pawnshops
Subchapter E. Inspections And Examinations

§ 371.201. Examination By Commissioner

At any time the commissioner considers necessary, the commissioner or the commissioner's representative may:
(1)    examine a pawnbroker's place of business;
(2)    inquire into and examine a pawnbroker's transactions, books, accounts, papers, correspondence, or other records that relate to the business of the pawnbroker; and
(3)    examine or inspect pledged goods and goods required to be identified by Section 371.177.

Cite as Tex. Fin. Code § 371.201

§ 371.202. Access To Records; Copies

(a)    During an examination the pawnbroker shall give the commissioner or the commissioner's representative free access to the pawnbroker's office, place of business, files, safe, or vault.
(b)    The commissioner or the representative is entitled to copy any book, account, paper, correspondence, or other record that relates to the business of the pawnbroker.

Cite as Tex. Fin. Code § 371.202

§ 371.203. Oaths

During an examination the commissioner or the commissioner's representative may administer an oath and examine a person under oath on a subject relating to a matter regarding which the commissioner is authorized or required by this chapter to consider, investigate, or secure information.

Cite as Tex. Fin. Code § 371.203

§ 371.204. Inspection By Peace Officer

A pawnbroker shall allow a peace officer to inspect the pawnbroker's books, accounts, papers, correspondence, or other records that relate to the business of the pawnbroker at any reasonable time without judicial writ or other process.

Cite as Tex. Fin. Code § 371.204

§ 371.205. Refusal To Allow Examination Or Inspection

A pawnbroker who fails or refuses to permit an examination or copying of books or other documents or an examination or inspection of goods authorized by this subchapter violates this chapter. The failure or refusal is grounds for the suspension or revocation of the license.

Cite as Tex. Fin. Code § 371.205

§ 371.206. Confidentiality

Information obtained during an examination or inspection authorized by this subchapter is confidential and privileged except for use by the commissioner or in a criminal investigation or prosecution.

Cite as Tex. Fin. Code § 371.206

§ 371.207. Fee

A pawnbroker shall pay to the commissioner an amount assessed by the commissioner to cover the direct and indirect costs of an examination and a proportionate share of general administrative expenses.

Cite as Tex. Fin. Code § 371.207

§ 371.208. Verification Of Net Assets

If the commissioner questions the amount of a pawnbroker's net assets, the commissioner may require certification by an independent certified public accountant that:
(1)    the accountant has reviewed the pawnbroker's books, other records, and transactions during the reporting year;
(2)    the books and other records are maintained using generally accepted accounting principles; and
(3)    the pawnbroker meets the net assets requirement of Section 371.072.

Cite as Tex. Fin. Code § 371.208