how do pawn shop FFLs differ from normal?

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akodo

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If I recall correctly type 1 is for a normal gun shop or gunsmith, and type 2 is for a pawn broker

How is type 2 different? Why 2 different types? any further restrictions on a type 2?

I ask this because I am sure there are going to be those who assume that the Tennessee shooter who got his shotgun from the pawnshop was using some sort of grey legal area, as most only have experience in pawn shops through TV, where the pawnowner is always fencing stolen goods and exchanging brand new $500 snub nose revolvers for $40
 
I don't think there is a difference in the FFL. (Could be wrong of course.)

IIRC Class II is a manufacturer's permit, not pawn related.

I know the states put some restrictions on the pawn guys but I don't think that's an FFL issue.
 
It has to do with loaning money and taking firearms as security. They have the same capabilities as an 01

07 is manufacturers FFL.
Class II manufacturer usually means SOT or Class III manufacturer(Suppressor or FA weapons manufacturing).

Class III is normally what u would call an SOT Machinegun dealer

SOT = Special occupations tax
 
From the BATFE Website:

Types of FFL's

Type 01 - DEALER IN FIREARMS
Type 02 - PAWNBROKER
Type 03 - COLLECTOR OF CURIOS AND RELICS

Type 06 - MANUFACTURER OF AMMUNITION FOR FIREARMS
Type 07 - MANUFACTURER OF FIREARMS
Type 08 - IMPORTER OF FIREARMS / AMMUNITION

Type 09 - DEALER IN DESTRUCTIVE DEVICES
Type 10 - MANUFACTURER OF DESTRUCTIVE DEVICES
Type 11 - IMPORTER OF DESTRUCTIVE DEVICES

BATFE - Types of FFL's

I wonder what the missing Types 4 and 5 are?
 
Last edited:
Ohen Cepel said:
I don't think there is a difference in the FFL. (Could be wrong of course.)

IIRC Class II is a manufacturer's permit, not pawn related.
You are confusing the license type with the 'special occupational tax' class.

Type 1 = Regular ol' FFL
Type 2 = Pawnbroker FFL

The 'special occupational class' of '2' allows a Type 1 or 2 FFL holder to manufacture NFA firearms.

SOT class '3' allows the type 1 or 2 FFL holder to deal in NFA firearms.
 
The pawn shop FFL is the one that also displays the wooden cigar store Indian, and stocks a lot of golf clubs, jewelry and miscellaneous power tools.
 
The 'special occupational class' of '2' allows a Type 1 or 2 FFL holder to manufacture NFA firearms.
False, you need to be a type 07 (firearm manufacturer) or 10 (firearm manufacturer, including destructive devices, but no other NFA or AP ammo) manufacturer to obtain a class 2 SOT.

http://www.quarterbore.com/nfa/class3.htm

An importer can also deal in firearms. A manufacturer can also deal in firearms. A dealer cannot import nor manufacture firearms. Dealers can only deal. They have no manufacturing privileges.
 
The pawnshops arround me sell their rifles for close to retail price for used equiptment. Rarely a good deal to be found there. Of course im sure they want to bargain down some of the items. Its a chain pawnshop though. Maybe locals have better prices.
 
Question about pawn brokers that may have something to do with the question. I've never bought or sold anything to a pawnbroker so I have no idea. As I understand it, when you pawn something you're actually using the item as security on a "loan?" I assume if you pay the loan back you get your security back?"

IF I took a gun in and got a "loan" on it. Then repaid the load with interest, does the PB have to run a background check and fill out a 4473 before giving me back my own gun? Or do they just hand the gun back and say thank you for your business?
 
Question about pawn brokers that may have something to do with the question. I've never bought or sold anything to a pawnbroker so I have no idea. As I understand it, when you pawn something you're actually using the item as security on a "loan?" I assume if you pay the loan back you get your security back?"

IF I took a gun in and got a "loan" on it. Then repaid the load with interest, does the PB have to run a background check and fill out a 4473 before giving me back my own gun? Or do they just hand the gun back and say thank you for your business?

Generally you can either sell an item to pawn shop or pawn it.
When you pawn it they will give you less money but keep item in back. Usually you get 30 days. In 30 days if you have the money loaned + 10% you get your item back. If not store keeps item and then puts it out front to sell it.

I would assume that if you "pawned" the item vs selling it then it is still yours. If you picked it up later by paying back the loan that no background check would be needed. Just like if you put a gun up for consignment at gunshop and then changed your mind. It is still your firearm.

Of course I am no lawyer and state laws do vary.
 
I would assume that if you "pawned" the item vs selling it then it is still yours. If you picked it up later by paying back the loan that no background check would be needed. Just like if you put a gun up for consignment at gunshop and then changed your mind. It is still your firearm.
One has to undergo a NICS check to get a firearm back when the loan is paid to the pawn shop.
 
Yes, that is correct, FCFC. Also, if you put a gun up on consignment and you change your mind and want it back, a NICS check and 4473 is required to get the gun back.

(F15) Must a dealer record firearms received on consignment? [Back]

Yes. Firearms received for sale on consignment must be entered in the dealer's "bound book."

Sales of the firearms are handled in the same manner as other firearm sales. Return of the remaining firearms by the licensee to the consignor is entered in the dealer's disposition record. An ATF Form 4473 and a NICS check must be completed.
 
I don't know what class FFL my local pawnshop has, but he orders from Century, AIM, and is an official Sig dealer.

Reasonable prices with a bit of haggling room, very little markup on ammo, and $25 to transfer up to 3 firearms simultaneously. :D
 
An 01 is a regular gun dealer. An 02 is a pawn broker that deals in guns. An 02 can do everything an 01 does, including being a stocking dealer for new guns.

If your pawn ship is an FFL, most likely he's an 02. I think pawn shops are required to be an 02.
 
Doesn't a concealed carry license negate having to fill out a 4473 form and background check? I know it does in KY for the purchase of new guns, I assume it's the same with pawnshops?
 
Doesn't a concealed carry license negate having to fill out a 4473 form and background check?

It might get you out of some state laws, but the 4473 is a federal law.
 
No, a carry permit only qualifies as an exception to the NICS check in some states. A 4473 is still required. If you are a non-FFL getting a firearm from an FFL, a 4473 is required.

If a carry permit qualifies as a NICS exception, then they record the permit information on a 4473. Every time a firearm is transferred from an FFL to a non-FFL, a 4473 needs to be filled out. Period.

If your state carry permit qualifies as a NICS exception to the BG check, you still need to fill out a 4473 but no BG check is needed because you have credentials that satisfies the BG check.

My company has the FFL. I, as an individual, do not. If I purchase a gun using the company FFL for my own personal collection, I need to fill out a 4473 and run a background check on myself (my CPL was issued before the exception to the NICS date).
 
A seperate pawnbroker FFL was created because what they do is different than a regular FFL who sells firearms. Pawnbrokers hold a gun as collateral on a loan and then return the property to the person if they repay the loan. Also, pawnbrokers are regulated more strickly because of the reputation of pawnshops as a place to sell stolen goods.
 
Also, pawnbrokers are regulated more strickly because of the reputation of pawnshops as a place to sell stolen goods.

But this facet has nothing to do with the license. The status goods is dealt with via local law enforcement, as with all other loans and purchases.

They are also regulated under lending laws. In Texas, they are under the Texas Commerce Commission, the same as banks.
 
There has been considerable agitation to change the law and remove the special pawnbrokers category. Some pawnbrokers have complained of anti-semitism by the BATFE in dealing with pawnbrokers (many are Jewish) and being singled out for undue harassment on gun sales.

So far, Congress has not taken any action and the "Type 2" FFL remains in effect.

IIRC, the "Type 4/5" license categories were reserved for possible future use.

Jim
 
Jim, that is just bizarre. I don't see how removing Type 2 would alleviate supposed anti-semitic behaviors by the BATFE. If such behavior did occur, it would occur with regular FFL licenses for pawn shops as well. Everything is computerized. They don't need a type 2 designation to know the FFL is owned by a pawn shop.

Funny thing, many gun shop owners are Jewish too and and LOTS of pawn shop owners are NOT Jewish.
 
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