Texas § FI.371.072 - NET ASSETS REQUIREMENT

§ FI.371.072. NET ASSETS REQUIREMENT

NET ASSETS REQUIREMENT. (a) Except as provided by Subsection (b), a pawnbroker shall maintain net assets of at least $150,000 that are used or readily available for use in the business of each pawnshop. (b) A pawnbroker who held a license under this chapter before September 1, 1999, shall maintain net assets that are used or readily available for use in the business for that existing license of at least the amount required on August 31, 1999. The net assets requirement of this subsection remains in effect without regard to a change in ownership or relocation of the license. (c) Net assets must be represented by a capital investment unencumbered by a lien or other encumbrance and subject to a claim by a general creditor. Text of subsec. (d) as amended by Acts 1999, 76th Leg., ch. 801, Sec. 4 (d) Subject to Subsection (b), a pawnbroker shall maintain for each pawnshop net assets, as that term was defined at the time the license was issued, that are used or readily available for use in the business of the pawnshop of at least the amount required on: (1) August 31, 1981, if the pawnbroker held a license on that date; or (2) June 20, 1987, if the pawnbroker held a license on that date but did not hold a license on August 31, 1981. Text of subsec. (d) as relettered from subsec. (f) and amended by Acts 1999, 76th Leg., ch. 1399, Sec. 4 (d) In this section, "capital investment" means: (1) common or preferred shares and capital or earned surplus as those terms are defined by the Texas Business Corporation Act if the pawnbroker is a corporation; or (2) a substantial equivalent of items described by Subdivision (1), as determined by generally accepted accounting principles, if the pawnbroker is not a corporation. Text of subsec. (e) as amended by Acts 1999, 76th Leg., ch. 801, Sec. 4 (e) Subject to Subsection (d), net assets must be represented by a capital investment unencumbered by a lien or other encumbrance and subject to a claim by a general creditor. Text of subsec. (e) as relettered from subsec. (g) and amended by Acts 1999, 76th Leg., ch. 1399, Sec. 4 (e) Subsection (b) applies to a change in ownership that is: (1) a transaction involving a different owner who had a significant family or business relationship with a prior owner before the transaction; (2) a transaction in which: (A) only the number or proportionate ownership of owners of a business changes; and (B) an individual who was not an owner before the transaction is not an owner after the transaction; or (3) a change in ownership that occurs by testate or intestate disposition. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 801, Sec. 4, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1399, Sec. 4, eff. Sept. 1, 1999.