National Pawnbroker Winter 2013

Official Publication of the National Pawnbrokers Association

WINTER 2013

page 13

Congressional Committees to Watch page 40

Pawn Expo 2013

page 30

Legislative Conference

Go to page 15 And donate to the NPA PAC today. We need your support!

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MESSAGE FROM THE PRESIDENT

Time to Get Involved YOU ARE THE KEY TO NPA’S SUCCESS!

WHAT DID YOU PUT ON YOUR TO-DO list this year that will improve your business?

New signage? A new computer system?

A new year always brings new opportunities to grow your business, your staff, and yourself.

The best thing you can do to grow your business is to take your calendar out now and plan to attend the following NPA events: • NPA Legislative Day: Each year, NPA brings pawn to Washington, D.C. Our goal is simple—to educate legislators, both new and returning, about the pawn industry and how we benefit their constituents and the economy. When you attend, you will be given the tools to make the most of your visits to your legislators and their staff.

When we reach out to and provide the facts about our industry, we help policy makers understand our commitment to serving the public and why it is essential that we have their support.

• Pawn Expo 2013: Last year’s Pawn Expo was the best ever. This year’s will top it!

Pawn Expo is the only national pawnrelated event that provides education relevant to the pawn industry, networking with other pawnbrokers from across the country, and vendors offering you the best deals on items and services that improve your business. There is absolutely no better place to learn how to be a better business person! Save the date – July 16-18, 2013!

MEMBERSHIP

Your membership in the NPA is a valuable investment in your business. However, you need to step up to the plate to get the most out of it. This means signing up, reaching out, and participating. Some of the hot services at the moment for our members include the following:

1

NPA Help Desk section of the NPA website: Get answers to your questions anytime. Just log in to the Members Only section of the NPA website, and you’ll have access to information on a broad range of topics available through the association. NationalPawnbrokers.org

2

NPA Member Forum: Here, you can post thoughts, ideas, and questions and receive feedback from other pawnbrokers that have had the same experiences you’ve had. You can also provide answers; yes, you’ve already solved problems that others need help with. It is a winwin opportunity.

NPA Publications: Read National Pawnbroker magazine, NPA’s quarterly printed publication, and the NPA Insider monthly e-newsletter. Watch the NPA Insider videos on the NPA website. Look out for periodic member and legislative alerts in your inbox. These items provide valuable information on how to develop and protect your business.

3

TECHNOLOGY

Again this year, NPA will provide you information on how to use technology to succeed. The old way of doing business may help you maintain the status quo, but if you’re ready to grow, you have to create opportunities for yourself. The NPA is committed to helping you do just that.

Read the article “Why Do I Need a Website” in this issue of National Pawnbroker. It will give you information on how technology and your pawn store are true business partners. If you’re not online yet, get there!

At Pawn Expo 2013, we’ll provide information on how to use technology to market your business.

In addition, we’ll have a session on how to use the interactive technology that NPA has developed to access information, reach customers, and find resources.

Each day dawns with challenges for business owners. Making the choice to turn these challenges into opportunities is what separates the successful from the struggling. The knowledge and resources provided through NPA are there to help you create success.

I’m looking forward to serving you as the NPA President again this year. If I can be of any assistance, please don’t hesitate to contact me through the NPA office. The NPA Board of irectors and staff are here to serve the pawn industry, and you are the force behind our dedication.

Kevin Prochaska NPA President

When we reach out to policy makers and provide the facts about our industry, we help them understand our commitment to serving the public and why it is essential that we have their support.

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Table of Contents

WINTER 2013

FEATURE ARTICLES Identifying Hallmarks and Trademarks

15

20

Maintaining a Strong Bank Relationship

22

Preventing Bank Discontinuance

23

30

NPA Legislative Conference April 16, 2013

13

Hamilton Crowne Plaza Washington, DC

IN THIS ISSUE Letter from the President Letter From the Executive Director Government Relations Educating Congress Be a Super Hero Act Locally Congressional Committees to Watch NPA PAC NPA Legislative Day David Scott Fundraiser Compliance ATF: Firearms Inventory NICS News Community Involvement Musical Instrument Gift Day Official Publication of the National Pawnbrokers Association

WINTER 2013

COVER STORY

page 13

Congressional Committees to Watch page 40

Pawn Expo 2013

page 34

Legislative Conference

Go to page 15 and donate to the NPA PAC today. We need your support!

Go to page 15 And donate to the NPA PAC today. We need your support!

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1 4 6 9 10 13 15 30 53 35 39 16

Member News Monty Witthaus Retires NPA Internet Pawn Policy Statement New Members NPA Premier Awards State Association Updates Human Resources Employee Reviews Business Sense Bankruptcy and Pawnbrokers NSSF Has Your Back Saddle Theft Prevention Vendor Spotlight Mason Kay: Jade Experts Technology Why do I Need a Website?

Special Events Pawn Expo 2013 Dixie Conference and Trade Show Calendar of events NPA Staff Index of Advertisers

16 18 19 39 54 24 27 36 48 28 32 40 58 59 59 60

National Pawnbroker is the official publication of the National Pawnbrokers Association (NPA), and is published quarterly. No part of this publication may be reproduced without the written consent of Dana Meinecke, NPA Executive Director. Sale or distribution of any or all of the contents of this magazine is prohibited. All rights reserved. For more information on advertising or to obtain additional copies of National Pawnbroker, call 817-337-8830 or send an email to chris@nationalpawnbrokers.org. For membership information, email margie@nationalpawnbrokers.org. EDITOR’S NOTE: This publication is designed to provide accurate and authoritative information on the subject matter covered. It is provided and disseminated with the understanding that the publisher is not engaged in rendering legal or other professional services. If legal advice is required, the services of a competent professional should be sought. © 2007-13 National Pawnbrokers Association: P.O. Box 508, Keller, TX 76244 • 817-337-8830 •NationalPawnbrokers.org EDITOR: Chris Pearcey, NPA Communications Specialist, chris@NationalPawnbrokers.org; DESIGNERS: Carla L. Butz and Liza Samala

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MESSAGE FROM THE EXECUTIVE DIRECTOR

Key Factors to Success FOR NPA AND THE PAWN INDUSTRY

THE KEY FACTORS TO THE SUCCESS of the NPA are the same factors that will create success for the pawn industry as a whole. Each takes teamwork, dedication, and support, but when they come together, there is no stopping us!

VALUED SUPPORT

I would like to take a moment and sincerely thank the loyal Industry Partners that continue to support the NPA. Each of them wants to reach you, their customer, but they also realize that their participation in the NPA allows the association to grow and more effectively meet your needs through programs and services.

Please consider companies that have committed to supporting the industry when you need a product or service. Together, we can continue to make a difference.

ADVOCACY

NPA is your advocate on Capitol Hill. We’ll let you know what is going on and how it could affect you. More importantly, we’ll let you know how you can become involved and support the efforts of our Government Relations Committee. We can only protect our industry if we work together.

It is important that you attend the NPA Legislative Conference on April 16th in Washington, D.C. We have to stand strong and educate Members of Congress about our industry. It is the only way they will have the information that they need to make wise decisions on issues affecting our industry.

Every year is important legislatively. However the special challenge for 2013 is to educate new Senators and Representatives about our industry.

Here is a breakdown of the challenging numbers before us: Senate: 12 new members • Republicans • emocrats • Independent House: new members • emocrats • Republicans

Ninety-seven members are facing a huge learning curve. We have to make sure that they understand who we are and why we are important to their constituents and our economy.

And guess what? The Federal Charter will be resurrected in some form this year. Stay informed, watch for legislative e-alerts and most of all, act! This legislation will affect your business if it moves forward.

CHANGE

It is said that the only two things in life that are inevitable are death and taxes. Well, I assure you that there is one other: change! Only you can be the instrument of positive change in the industry, and the NPA is here to help.

You have a staff and board of directors that is focused on staying abreast of current trends and changes and providing you answers and strategies to address them. If every member of the NPA reached out and became more involved in one area of the industry at a national level, imagine the impact we would have?

NETWORKING

Your regional conferences are a great place to find connections near you that you can reach out to with questions, or to provide answers.

They are also your source of information and recommended action on legislation at the state level. Make sure you are a part of these valuable associations and their events.

Pawn Expo 2013 is the premier networking event for the industry. Through your attendance, you will not only find resources and business connections, but will also make friends that will last a lifetime. The other pawnbrokers you meet have faced the same challenges you have, and found ways to solve those problems and turn them into successes.

Save your diamonds for the Diamond District at Pawn Expo. There you’ll have the opportunity to visit several diamond vendors and negotiate the best prices.

I’m looking forward to seeing each of you this year at one of our upcoming events!

Dana Meinecke NPA Executive Director

It is important that you attend the NPA Legislative Conference on April 16th in Washington, D.C.

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GOVERNMENT RELATIONS

Educating Congress A PRIORITY FOR NPA

WITH THE RECENT SWEARING IN OF THE new 113th Congress, we once again have to get to work educating members about our industry. We still have many friends returning to office, but we also lost some.

Fortunately or unfortunately, depending on the particular shows they watch, most Congressional members and staff are learning about our industry from reality TV. The television industry continues to add new shows about the pawn industry. Of course the more outlandish the show is, the better the ratings. But, as you all know, there’s much more to the industry than what is seen on TV. GOALS Regardless of what is on TV, NPA’s Team GRC is focused on our long-term legislative goals: Key issues for 2013 will continue to include: • Federal Charter legislation • Responsible electronic reporting and data security • Internet pawn • Adverse legislation due to knee-jerk politics The mood in D.C. has been extremely volatile.

The primary job of Team GRC is to keep our industry out of the fracas while allowing our members to run their businesses free from unneeded and excessive regulations.

STATE POLITICS A new year at the federal level also brings a new year at the state level. Many of your state legislators are busy pre-filing bills now. It is vital to your business that you stay in front of any new and pending legislation in your state.

While Team GRC closely monitors state legislation, we aren’t there to head things off before they reach a tipping point. If you see something

PRESENTER

that raises a question, be sure to reach out to our team, and we’ll do our best to clarify our position and provide support for your response.

THE NPA TEAM Our ability to react on a moment’s notice has helped us immensely. That is why Team GRC exists. We have a dedicated and educated group of individuals watching out for the industry at the federal level.

Team GRC members include Cliff Andrews, Sarah Jane Hughes, Fran Bishop, Matthew Church, Dana Meinecke, and a Government Relations Committee consisting of both new and seasoned association members, board members, and association past presidents. I, for one, am humbled by the generosity of their time and talent in service to our association.

I can’t tell you how great it is to add Fran Bishop as our NPA GRC point person. She is invaluable!

YOUR HELP IS NEEDED! Last year we lost some strong supporters of our industry and the NPA due to retirement. We need to fill those shoes.

I ask each of you to consider what more you can do. Not strictly on a monetary basis, but with your expertise, insight, and vision. As vitally important as it is to find ways to replace lost revenue, it’s equally, if not more vital, to replace the effort.

A good way to start is by attending our annual Legislative Conference in Washington, D.C. on April 16th. It’s fun, interesting, and educational.

I look forward to seeing you there!

Another great year for our industry is on the books now. I hope that each and every one of you exceeded your expectations for your business and personal life as well. The entire Government Relations Committee wishes you much success for 2013.

Larry Nuckols NPA GRC Chair

CAN YOU THINK OUTSIDE OF THE BOX?

We’re always looking for members who appreciate a challenge to join our Government Relations Team or the Board of Directors. One of the requirements is that you attend our Legislative Conference in Washington, DC, held each Spring. Our board meetings are in July, October and March.

Contact Dana Meinecke, NPA Executive Director at dana@NationalPawnbrokers.org or 817-337-8830 for more information.

Key issues for 2013 will continue to include: • Federal Charter legislation • Responsible electronic reporting and data security • Internet pawn • Adverse legislation due to knee-jerk politics 6 | NATIONAL PAWNBROKERS ASSOCIATION | WINTER 2013

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GOVERNMENT RELATIONS

Be a Super Hero

ATTEND THE NPA LEGISLATIVE CONFERENCE, APRIL 16TH

ATTENTION ALL PAWNBROKER CAPED crusader wanna-be’s: mark your calendars now for the NPA’s Annual Legislative Conference in Washington, D.C., April 16, 2013. We will once again leap tall buildings in a single bound and fight for truth, justice, and the pawn industry way!

It is very important that we have a huge NPA member turnout. The date has been pushed back a month to avoid spring break conflicts.

With the newly elected 113th Congress in place, there will be many new legislators who need a lesson in Pawn 101 from you, their constituent.

Those who were re-elected will need a refresher course as well. I can never emphasize enough the

again, but really folks, we do have history on our side when it comes to meeting credit needs.

The pawn industry has, is, and will continue to offer short-term, non-recourse, cash loans on our customers’ tangible personal property via face-toface transactions. We are regulated at the federal, state, and local levels. So why should the Federal Charter proponents get a free pass and be preempted from all of the compliance measures we fall under? The answer is, they shouldn’t.

NPA’s opposition to this Federal Charter push has shined a light of truth on these megaprovider proponents’ intentions, and as they escalate their game plan, we must do so as well in

Fran Bishop Dollar Pawn, Haleyville, AL

Make sure YOUR voice is heard. Mark your calendars for April 16th. See you on the Hill! importance of Congressional Members knowing who YOU are and the services we, the independent pawnbrokers, provide to our customers and communities on a daily basis. This message must be delivered by you: there is no replacement for those of us who stand behind a pawn counter on a daily basis.

We have thrown some spikes on the road in front of the mega-provider proponents of the Federal Charter bill. Several other groups and associations have expressed their public opposition as well including: the National Association of Attorneys General, Conference of State Bank Supervisors, Center for Responsible Lending, and the NAACP, to name a few. Not the least of these is the ffice of the Comptroller of the Currency (OCC), which is the agency chosen by the federal charter proponents to be their regulator. You would think they’d take a hint when their regulator of choice is not interested in participating. But they keep pushing, supposedly in the name of filling a void in the credit needs of consumers.

I hate to drag out that old Queen Isabella story

order to ensure our interests, family businesses, employees, and customers are protected.

So, hopefully I’ve made you think enough about the importance of defeating this flawed proposal to get you to commit to attending the NPA Legislative Conference.

Make sure YOUR voice is heard. Mark your calendars for April 16th. See you on the Hill!

Fran Bishop, Dollar Pawn Inc. Haleyville, AL poses with Dr. Robert J. Bentley, Governor of Alabama.

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GOVERNMENT RELATIONS

Act Locally

GET INVOLVED AND BUILD SUPPORT FOR OUR INDUSTRY!

IN ORDER F OR N PA TO B E SU CCESSFUL AT influencing legislation at the national level, it is essential for you to establish grassroots advocacy strategies in your community.

Creating or joining a local grassroots campaign will help you create a network of support for issues related to your business before you need them.

The local issue may directly affect your business, but don’t let that be the only time you participate. Support other community groups in their efforts, and they’ll be there to support you.

GRASSROOTS ACTION

Grassroots organizing builds community groups from scratch, developing new leadership where none existed and organizing the unorganized.

Following are some of the activities that happen during a grassroots campaign and how you can be involved and educate others about the pawn industry: • • • • •

• • • •

Host a meeting in your store Put up posters in your store Educate customers about an issue Gather signatures for petitions Make sure that your staff, family, friends, and customers take part in mail, phone, and email campaigns (See NPA’s Rally Congress website: act.NationalPawnbrokers.org.)

Allow information tables to be set up outside your store Raise money for political contributions Talk to government officials Help with get-out-the-vote activities

Rally Congress makes it easy to contact your federal congressional members about issues important to pawn. Friends, family, and customers can access the website and show their support as well.

Becoming involved at the local level creates a foundation of support that often rises to the state and national levels. Local officials are more accessible, and eventually these individuals could become your state legislator or federal congressional member. The sooner you are able to foster a relationship with them, the better you will be able to educate them about the pawn industry.

If you are interested in starting a grassroots campaign in your community, NPA has resources for you. Many members have created successful campaigns already, and they can guide you with advice and provide valuable resources.

GRASSROOTS ADVICE Diane Taylor: Traders Loan & Jewelry, Reseda, CA It is not who you know, but who knows you!

It is imperative that you get to know your local legislators before something happens and you need help with an issue. Most legislators had never been into a pawn store before I invited them. I met a Los Angeles councilwoman, who then became our city controller. Now she is running for mayor and is expected to win. Develop relationships, go to events, be friendly, and educate these people. Trust me, they will remember you.

Larry Nuckols: Brittex Financial, San Antonio, TX Collaborating with like-minded individuals is instrumental when developing a relationship with local law makers. We have seen unparalleled success for our businesses, because we took a proactive approach and fostered positive working relationships with our city and county elected officials. Local officials often become state officials who, in turn, become state legislators. Building that relationship early has been instrumental to our grassroots efforts.

Tim Collier: Pacer, Ltd, Little Rock, AR It’s much easier to get through to folks you have either donated money to, or worked on, their campaign, than it is to cold call asking for help.

We continue to work hard as an association to improve the image of pawnbrokers across the country and there is no better way to achieve that than to have a politician speaking on your behalf.

It’s never too late. Start TODAY!

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GOVERNMENT RELATIONS

Congressional Committees to Watch START CONTACTING YOUR REPRESENTATIVES NOW: act.NationalPawnbrokers.org

HOUSE COMMITTEE ON FINANCIAL SERVICES eb ensarling, -TX, Chairman

REPUBLICANS

DEMOCRATS

•

•

• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

ar . iller, A Vice Chairman pencer Bachus, A Chairman Emeritus Peter T. King, N dward . o ce, A rank . ucas, OK helle oore apito, cott arrett, N and Neugebauer, TX Patrick T. c enr , N ohn a pbell, A ichele Bach ann, Ke in c arth , A te an Pearce, N Bill Pose , ichael . it patrick, PA nn A. est oreland, A Blaine uetke e er, O Bill ui enga, ean P. u , a es B. enacci, O obert urt, A ichael . ri ,N te e ti ers, O tephen ee incher, TN arlin A. tut an, N ick ul ane , and ultgren, ennis A. oss, obert Pittenger, N Ann agner, O arland And Barr, K To otton, A

• • • • • • • • • • • • • • • • • • • • • • • • • • •

axine aters, A Ranking Member arol n B. alone , N N dia . el ue , N el in . att, N Brad her an, A regor . eeks, N ichael . apuano, A ub n ino osa, TX . ac la , O arol n c arth , N tephen . nch, A a id cott, A Al reen, TX anuel lea er, O wen oore, Keith llison, d Perl utter, O a es A. i es, T ar . Peters, ohn . arne , r., Terri A. ewell, A Bill oster, aniel T. Kildee, Patrick urph , ohn K. elane , K rsten ine a, A o ce Beatt , O enn eck, A

HOUSE COMMITTEE ON FINANCIAL SERVICES FINANCIAL INSTITUTIONS AND CONSUMER CREDIT SUBCOMMITTEE helle

oore apito, -

, Chairwoman

REPUBLICANS

DEMOCRATES

• a es B. enacci, O Vice Chairman • pencer Bachus, A • ar . iller, A • Patrick T. c enr , N • ohn a pbell, A • Ke in c arth , A • te an Pearce, N • Bill Pose , • ichael . it patrick, PA • nn A. est oreland, A • Blaine uetke e er, O • ean P. u , • arlin A. tut an, N • obert Pittenger, N • arland And Barr, K • To otton, A • eb ensarling, TX, ex officio

• • • • • • • • • • • • • • •

regor . eeks, N anking e ber arol n B. alone , N el in . att, N ub n ino osa, TX arol n c arth , N a id cott, A Al reen, TX Keith llison, N dia . el ue , N tephen . nch, A ichael . apuano, A Patrick urph , ohn K. elane , enn eck, A axine aters, A ex officio

SENATE BANKING COMMITTEE Ti

ohnson, -

, Chairman

REPUBLICANS

DEMOCRATES

•

• • • • • • • • • • •

• • • • • • • • •

ike rapo, Ranking Member ichard helb , A Bob orker, TN a id itter, A ike ohanns, N Patrick . Too e , PA ark Kirk, err oran, K To oburn, OK ean eller, N

ack eed, harles . chu er, N obert enende , N herrod Brown, O on Tester, T ark . arner, A e erkle , O Ka agan, N oe anchin , li abeth arren, A eidi eitka p, N

act.NationalPawnbrokers.org

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GOVERNMENT RELATIONS

Keeping Our Industry Strong IN TODAY’S POLITICAL ENVIRONMENT, VOTING IS not enough to ensure that your voice will be heard. By contributing to the NPA PAC, you are supporting the legislators who help shape laws that affect your business. NPA PAC contributions allow us to educate lawmakers about our industry and how we serve the American public. Please send your personal check or credit card information along with this completed form to: NPA PAC, PO Box 508, Keller, TX 76244 Name: _____________________________________________ Mailing Address: ____________________________________ Email: _____________________________________________ Business Phone: _____________________________________ Contribution Amount: $_________ q Personal Credit Card q Personal Check Occupation: q Pawnbroker

q Other __________________

Credit Card: ________________________________________ Expiration Date: ___/___/______ Signature: _________________________________________ Date: ___/___/______ Contributions to the NPA PAC are not deductible for federal income tax purposes and are used for political purposes. All contributions are voluntary and individuals may refuse to contribute without fear of reprisal. Under federal law, the maximum permitted individual contribution to a PAC is $5,000 per calendar year. Federal law requires all PACs to report the name, mailing address, employer and occupation of each individual whose contributions to the PAC exceed $200 in a calendar year, and such information is public record. You must be a US citizen or a foreign national a mitte to t e fo e manent esi ence as efine b ection a of t e Immigration and Naturalization Act.

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COMMUNITY RELATIONS

NPA Members Give Back

MUSICAL INSTRUMENT GIFT DAY BREATHES NEW LIFE INTO SCHOOL BAND PROGRAM

THE NPA CELEBRATED ITS 4TH ANNUAL MUSICAL Instrument Gift Day in December. During this program, NPA members work together to provide musical instruments to wounded veterans, underprivileged youth, and fledgling school band programs.

This year, NPA worked closely with The Mr. Holland’s Opus Foundation (TMHOF) to identify the band program at Rowan Middle School in Jackson, Mississippi as the recipient. To find out more about the program, visit GiftDay.org.

NPA members stepped up by donating over $5,000 dollars in cash gifts and musical instruments. “It’s exciting to see overall participation and the number donations growing from year to year,” said Kevin Prochaska, NPA president. “I feel proud knowing that our contributions are helping to change people’s lives.”

GIFTDAY.ORG

The NPA would like to thank the following donors: • Dillon Gage Inc. – $ 2,500 • Mississippi Pawnbrokers Association – $1,000 Generous personal cash contributions were received from Steve Rogers, Christopher McCarthy, Gracelyn Strange, Ben Levinson, Steve Foglesong, Dana and Juergen Meinecke, Phil Webb, and Daniel Wagner.

Seven donated instruments were received from Kevin Macdonald, Adam Bowers, and Brian Thompson.

NPA will continue to work with TMHOF on an ongoing basis.

Members can give at any time on behalf of the NPA.

MEMBER NEWS

The Man Behind the Phone MONTY WITTHAUS RETIRES AFTER 33 YEARS

MONTY WITTHAUS IS RETIRING FROM M&M Merchandisers after 33 years in the pawn business. Monty originally joined Webers Pawn as a clerk for Mitch Stenzler, the owner and father of Marty Stenzler.

At the same time, Marty was working to get M&M Merchandisers up and running. The company was growing and Marty needed help. Monty came on board as the first full time employee in January of 1983.

From the beginning, it was easy to see that his personality, wit, and product knowledge were the perfect fit for M&M. He began his career by cold calling on pawn stores across Texas.

Monty continued to develop his phone, customer service skills, and product knowledge. As he grew his role with the company so did his sales and customer base. Shops across the country were calling and asking for him by name.

Monty became the man behind the phone for M&M. His techniques on the phone, problem solving prowess, and daily approach to helping customers are mainstays for all sales people at the company.

Monty served as sales manager, national sales manager, and vice president of corporate accounts while at M&M. He has helped thousands of pawn stores over the years and has made lifelong friends with many of the people he served.

Monty Witthaus M&M Merchandisers

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MEMBER NEWS

- POWER

REVISED, JANUARY 2013

NPA Policy Statement

INTERNET PAWN LOANS

Superior Service. It’s knowing you are at your best when your partner expertly covers every detail.

And they do … MID-STATES. Mid-States’ Concierge Program offers the highest level of customer service in the refining industry today. Knowledgeable staff are always available. Complete electronic reporting and data access keeps you fully in the loop through every aspect of your transaction. Full account activity and history are readily available online at your fingertips 24 hours a day. Complete personalization every day, for every melt, without compromise. Knowing you and your materials are in the best of hands …

Go ahead, be your best.

For Superior Service, Make It Mid-States.

PAWN LOANS ARE AN IMPORTANT, GROWING, AND trusted source of small-dollar, short-term nonrecourse loans in the United States. Fast, on-the-spot decision-making by pawnbrokers at brick and mortar pawn shops throughout this country help make pawn loans available for emergencies that individuals, families, and small businesses experience.

Pawn loans traditionally have been face-to-face transactions, regulated by federal, state, and local laws. Recently, some providers have offered “Internet pawn loans” in which the borrower and pawnbroker do not meet face-to-face, but rather conduct business via the Internet.

Internet pawn loans may be considered more risky for some consumers than face-to-face pawn transactions. Internet pawn loans make for a more uncertain transaction, forcing the borrower to question where collateral is stored, when loans will be funded, and what state law the loan is subject to. On the other hand, Internet pawn loans may be desirable for some borrowers who prefer not to engage in face-to-face transactions or find some aspect of the provider’s terms more competitive.

The NPA does not support, condone, or offer membership to providers offering Internet pawn transactions that:

1

Cannot demonstrate full compliance with all federal consumer credit laws as well as with state, and local laws adopted by the jurisdiction in which the consumer initiates the transaction.

2

Do not hold a license to do business within the state where the consumer initiates the pawn transaction.

3

Circumvent federal, state, or local laws or regulations through the use of off-shore credit providers or partnering with entities operating on federal Tribal Reservations.

The NPA in fact supports, condones, and offers membership to providers offering internet pawn transactions, as long as the provider has brick and mortar locations that are open to the general public and offers pawn loans in the same state in which it is licensed and only to residents of that state or to consumers who travel to that state in person for the purposes of the transactions.

01242013ln. This document is protected by copyright National Pawnbrokers Association, ©2013. All rights reserved. Reproduction in any form of any portion of this document and any attachments or accompanying materials is strictly prohibited without the express written consent of the National Pawnbrokers Association.

800 551 0083

www.midstatesrecycling.com

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MEMBER NEWS

Welcome New Members PAWNBROKERS ARKANSAS

Porter’s Pawn and Bargain Center, Harrison

CALIFORNIA

M A Griffin & Sons Bakersfield

CONNECTICUT

Yankee Peddler & Loan Norwalk

FLORIDA

Capital Pawn, Naples Best Value Jewelry and Pawn Fort Pierce Best Value Pawn Port Saint Lucie

MASSACHUSETTS

Gold Masters, Providence

MISSOURI

Atomic Pawn 2 stores, Knoxville 1 store, Maryville

PJs Pawn Plus, Saint Louis

NORTH DAKOTA

First National Pawn 3 stores, Fargo, Grand Forks, and Mandan

NEW YORK

E Z Pawn Corp, 2 stores Rosedale and Brooklyn Seapod Pawnbroker Brooklyn Fort Knox Jewelry and Loan Central Valley

Five Star Jewelers, Miami

Paradise Pawnbrokers Bronx

ILLINOIS

OHIO

United Loan Co, Chicago

KENTUCKY

E-Zee Pawn Money Bardstown

RHODE ISLAND

Empire Loan, 2 stores Lowell and Stoughton

TENNESSEE

VIRGINIA

Liberty Pawn & Gold Fredericksburg

WASHINGTON

Double Eagle Pawn Shop Spokane

TEXAS

INDUSTRY PARTNERS

Money Mart Pawn & Jewelry 5 stores, Bellaire, Boerne, Houston, San Antonio (2)

Di-Moksh Diam, Los Angeles

Sunbelt Jewelry & Loan #3 Houston

Valu + Pawn Fort Worth 2 stores, Fort Worth and Houston Top Dollar Pawn Superstores 2 stores, Fort Worth and Woodway Big Tex Pawn World, Bryan

Toledo Gold Exchange Toledo

Top Dollar Pawn Superstores McKinney

OREGON

Real Cash Pawn, Houston

H & B West, Hillsboro

CALIFORNIA

Great American Mint & Refinery, Anaheim Ami Karatrade, Los Angeles

MISSOURI

Diamond Insider, Saint Louis

NEW YORK

US Gold Refinery, New York

TEXAS

United Exports North American, Dallas

UTAH

White Canyon Software American Fork

Thank You for Supporting NPA! THE NPA WOULD LIKE TO THANK ALL NPA MEMBERS who renewed their membership for 2013. We would also like to extend special congratulations to those pawnbroker members who took advantage of the multi-year discount and renewed for 2014 as well.

As of the end of 2012, membership in the NPA had surpassed the 2011 and 2010 numbers. Let’s keep it going! If you know someone who is not a member, let us know so we can contact them about the great benefits they are missing. Send an email with the company name to margie@NationalPawnbrokers.org.

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FEATURE ARTICLE

Identifying Hallmarks and Trademarks

PRESENTER

by HALLMARK RESEARCH INSTITUTE William Whetstone, Danusia Niklewicz, and Lindy Matula www.hallmarkresearch.com

BEFORE YOU TOSS THOSE PIECES OF JEWELRY OR silver hollowware into the melting pot, take a few minutes to look carefully for any marks that may make it more valuable. A French or Russian hallmark, or Georg Jensen or Cartier trademark would mean that you could sell the item for a lot more than what you would get by scrapping the pieces.

The first thing you want to determine once you find a mark on a piece is what type it is: a trademark or hallmark.

TRADEMARKS

A trademark is the mark of the maker of the piece. It may indicate the designer, the artisan, the manufacturing company, or the sponsor of the piece.

In the U.S., the National Gold and Silver Stamping Act of 1906 dictates that any item of gold, silver, or platinum stamped with a fineness mark (i.e., t, , , Pt , etc.) must be accompanied with the mark of the party responsible for that claim.

In reality, you regularly see items offered for sale with no marks at all, or simply a fineness mark without a responsibility mark. While regularly sold, it should be noted that these items are not in compliance with the law.

In some cases, items with no marks may be vintage or antique pieces that were made before the 1906 law was passed. In other cases, items have no markings and have been more recently made. They may have been imported or made locally, but they are still not in compliance with federal law.

Even old items that are currently being retailed as antiques are required by law to be marked by the vendor or sponsor before being offered for sale or imported into the U.S.

Trademarks from well know companies like Van Cleef & Arpels, Tiffany, Bulgari, International Silver, and the like can markedly increase an item’s salability and value over their intrinsic precious metal content. This makes it worth your while to sell it in the collector’s market, rather than melting it.

HALLMARKS

In countries around the world and throughout most of Europe, there are strict laws that re uire that all precious metal items must first be assayed and hallmarked before they can be legally sold. These consumer protection measures were in many cases implemented hundreds of years ago to insure that the metal fineness stamped on an item of precious metal was absolutely correct.

(Continued on page 50)

This pendant shows the sponsor’s trademark (T&Co), the designer’s signature trademark, a copyright symbol, and the 925 silver fineness. These are maker’s marks, not hallmarks.

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Success in Tucson Stallcup Group Facilitates the Sale of 12 Arizona Pawn Shops FOR IMMEDIATE RELEASE: KELLER, TX, December 21, 2012 Stallcup Group, Inc., an exit strategy consulting firm headquartered in Keller, TX, today announced its successful facilitation of the sale of USA Pawn, a pawn business made up of 12 independently-owned Arizona pawn shops. Ten of the pawn shops are located in Tucson, AZ; two are located in Bullhead City, AZ, near the Arizona-Nevada border.

CEO and Founder Steve Stallcup explained the significance of the sale. Said Stallcup, “The marketplace had become significantly less aggressive due, in part, to the perception that pawn shops had been experiencing a slow down in gold activity. By proving that these particular pawn shops were not experiencing a slow down in gold transactions, we were able to market the pawn shops to potential buyers and achieve a sale price that reflected the actual – rather than the perceived – value of the shops.”

Former owner of the pawn shops, Craig McCall, brought Stallcup Group on board in August 2012 because he recognized that

working with an objective third party with experience in the pawn industry would vhelp expedite the selling process.

It would also remove a number of the burdens normally associated with business closings from his shoulders. McCall is no stranger to the closing process, having sold 11 pawn shops in Las Vegas, NV in 2008. McCall stated: “Stallcup Group relieved me of many of the closing processes I would have had to attend to personally, which allowed my staff and I to continue to focus on daily operations. For instance, they relieved me of having to respond to buyers’ requests for information and manage data gathering,” “Ultimately, I was most impressed with Stallcup Group’s financial modeling, which is extremely sophisticated, and their ability to package information in a way that buyers want to see,” concluded McCall. “Stallcup Group was with me from the initial meetings with the buyer to the final closing, and provided insights along the way. I was very impressed with their thoroughness and guidance throughout the entire process.”

In addition to selling USA Pawn, McCall’s goals included forming and negotiating land leases, achieving aggressive non-compete agreements, and eliminating anything in his financial data that buyers could perceive as a red flag and potentially use to their advantage during negotiations. Through thorough analyses of USA Pawn’s financial data and the unique attributes and

characteristics of each shop, Stallcup Group was able to help McCall achieve all of these goals.

Why Stallcup Group?

We have more than 26 years of experience in the pawn shop industry and have closed over $125M in transactions since founding the business in 2009. We are the leader in Exit Strategy Consulting, and solely represent pawn shop owners. Contact us directly, and let us evaluate the true value of your pawn business.

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Steve Stallcup

steve@stallcupgroup.com

Jeremy Bowman

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817.479.3880

jbowman@stallcupgroup.com

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214.396.4070

STALLCUPGROUP.COM

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FEATURE ARTICLE

Maintaining a Strong Bank Relationship

PRESENTER

AVOIDING BANK DISCONTINUANCE

SOME YEARS AGO WHEN BANK discontinuance started to rear its ugly head for Money Service Businesses (MSBs), I was asked to write an article on the do’s and don’ts of maintaining a strong bank relationship.

Well, fast forward to 2013 and, not only is the problem still there, it’s spilled over to pawn stores and other related industries. So, what steps can you take, and what steps must you take, to maintain that ever so important relationship with your bank?

Let’s examine what I refer to as the “Bank Commandments.”

1. Thou shall comply!

As you know, as a dealer in precious metals (and pawnbroker) there are certain requirements you must comply with. Banks are taking a lot of heat these days from their regulators, just like you.

And, just like you, they need to make sure your customers follow the rules.

So, when the bank’s regulator comes to visit, he/she will want to examine your accounts and make sure that your bank has controls in place to monitor you.

Make sure your compliance is in order! It doesn’t matter whether you ever fill out an IRS Form 8300, conduct a transaction over $10,000, or come from a town with a population of 30. You still must have a policy and procedure manual in place. You still must provide ongoing training, internal monitoring, and independent reviews, and have record keeping requirements in place.

Imagine getting audited by your bank or the IRS and having it on written record that you failed to implement the most basic requirements. es, sure you will call someone to get it fixed and get your compliance in order, but what will your bank think when they found out you didn’t even bother to comply in the first place If you don’t know how to comply with the rules or believe that it is your duty to comply with federal requirements, how could you expect your bank to feel comfortable doing business with you?

2. Thou shall not do things that attract attention to oneself!

Ok, you have been to enough of my seminars and read enough articles to know that the item at the top of the list with banks and money services businesses is suspicious activity reporting.

If a customer came into your store and purchased $9,500 in goods daily for six months and never went over $10,000 in one day, or did something else that just plain stood out, would you take notice ould you file a Suspicious Activity Report (SAR)? Hopefully your answer is, “Yes!” If you make money in your pawn store and take it to the bank daily or weekly for deposit, why would you intentionally deposit less than $10,000 regularly and ongoing? If you do, expect the bank to file a SAR on you just as you would on your customer. If that happens, expect big problems including and up to bank discontinuance, a referral to the The Department of the U.S. Treasury, homeland security and the FBI, and even a visit from Seal Team 6!

3. Thou shall maintain friendly relations!

How well do you know your bank manager or your merchant teller? Are you active in maintaining a good relationship with them? If not, you should consider becoming Mr. or Mrs. Goodwill in 2013.

I am not telling you to buy them lunch every day, but get to know them. If they know you, they will tend to feel more comfortable with you.

When was the last time you invited the banker to your store to see how you operate? A little love goes a long way.

Robert Frimet, CAMS Robert Frimet is President of RMF Consulting Group, Inc. and is a Certified Anti-Money Laundering Specialist (CAMS) serving the pawn, check cashing, payday, title, and other industries since 1991. Mr. Frimet offers compliance services nationwide and may be reached at 866-204-7209 or at bob@checkconsultants.com.

4. Thou shall have your house in order!

Make sure you keep your licenses in order, that you have your balance sheets and P&L’s in order and, of course, make sure you pay your taxes!

(Continued on page 45)

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FEATURE ARTICLE

Preventing Bank Discontinuance ADVICE FROM A FELLOW PAWNBROKER

THE TERM “BANK DISCONTINUANCE” had seldom been used in our industry until recently.

When it was used, it was reserved for those in the check cashing and money transfer businesses.

Unfortunately, we now hear reports on a regular basis about pawnbrokers who have lost their banking relationship and are in the unenviable position of trying to find a new bank.

ROOT CAUSE The root of this problem can be traced back to the events of 9/11. The subsequent enactment of the USA Patriot Act resulted in increased scrutiny of money transactions on the part of federal bank regulators.

Federal regulators took a negative view of Money Service Businesses (MSBs) and held the perception that these businesses presented a higher risk for money laundering and financial crimes.

Banks in turn were forced to invest in additional compliance systems to deal with these businesses and became de facto regulators of their customers. hile pawnbrokers have not been specifically identified as being in the same category as check cashers or money transmitters, I can tell you from personal experience that these regulators and the compliance departments of many banks see pawnbrokers in exactly the same light.

THREE PROBLEMS A few months ago I had lunch with a good friend who had previously been my primary banker. The subject of banks divorcing their customers came up, and he was very frank during his discussion of the subject.

He said that the pawn industry faces three problems when dealing with banks, especially larger multi-state banks:

1

The misguided preconception that the very nature of the pawn business lends itself to money laundering and financial crimes. This is especially problematic if the compliance department for a bank is located far from your business and the

only thing a compliance officer knows about your business is what he sees in your records and what he obtains from the media.

2

The investment and operating costs faced by banks who must maintain enhanced compliance departments to deal with MSBs or businesses that are similar in nature. Banks that do not have to deal with these businesses are able to allocate resources to higher profit customers and products.

3

The risk faced by banks that their customers may violate the USA Patriot Act or other federal regulations. In perhaps the most revealing statement of the entire conversation, my friend stated that the banks were most concerned about paying fines assessed against them by federal regulators for violations committed by their customers.

While federal regulators may take some punitive actions directly against the customer, it is the banks that have the larger wallets and, as the de facto regulators, it is the banks that will be held responsible for violations. MSBs and pawnbrokers are viewed as a higher risk for violations.

Robert Anderson CPA, CMA CFO, R & R Pawn Indianapolis, IN Treasurer, NPA Board Member, Indiana Pawnbrokers Association

WHAT CAN YOU DO? Faced with these facts, what can you do in your own business to minimize the risk of your bank terminating its relationship with you? The answer is a two-part solution that requires you to be proactive and do some additional work:

1

Register as an MSB and develop an Anti Money Laundering (AML) program for your business.

This consists of: • Registering your business with The Financial Crimes Enforcement Network (FINCEN) and following the reporting requirements.

The business registration and required reporting forms, such as Form 104 CTR for transactions over $10,000, or the Suspicious Activity Report (SAR) are all processed online.

(Continues on page 47)

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HUMAN RESOURCES

Employee Reviews

IMPROVE STORE PROFITS AND BUILD A SUCCESSFUL STAFF

AUTHORS OF HOW-TO BUSINESS BOOKS, as well as prominent professors in colleges and universities, miss the point when discussing how to use performance reviews. They frequently say that an annual employee review must be detailed and lengthy. While this approach is certainly better than no review, it has limited ability to get better performance from your staff.

As I travel around the country and visit with pawn store owners, it is clear that the once-per-year, lengthy employee review is preferred. However, expecting sustained profitable performance from store teams when using this approach is not realistic or practical.

When I am asked about the best approach to performance motivation through effective employee evaluations, my response is straight forward: Talk to o staff eac mont efe abl t e fi st ee follo in t e en of an i en mont .

ONE-ON-ONE

The best way to improve store profits through individual productivity is to perform a one-on-one monthly review using a review document with only a few easily understood questions: • hat is the comparison between the productivity standard for a team member and the person’s actual productivity for the previous month?

• hat is the total number of transactions completed by the team member as compared to the store total?

• Give a yes-or-no answer to the following five questions: 1 Do I know what is expected of me at work?

2 Do I have the materials and equipment I need to do my work correctly?

3 At work, do I have the opportunity to do what I do best every day?

4 In the last seven days, have I received recognition or praise for doing good work?

5 Over the past four to six weeks, has my supervisor or someone with the company reviewed my work?

The monthly review document should provide a place for the staff member and supervisor to make comments. Review documents for selling and nonselling positions will vary, but should always have easy to understand criteria on one page with answers to the five uestions noted above.

While many other metrics can be added to the review process described above, over time I have learned that only the above really matters. Any review document that is more than one page and contains convoluted and difficult to understand metrics is a waste of time, energy, and money.

ADDED BENEFITS

When the date for an annual review rolls around, use the same form. The annual review will be much easier, as you will have twelve monthly reviews to reference.

Is it time to terminate an under-performer? The reviews will provide solid reasons to terminate an employee as well as documentation for defense of your action should you need it. After all, every month you have told the staff member how she/he is performing as compared to your expectations.

You won’t have to wait and start documenting when you decide to terminate the employee.

You’ve already done it!

The process outlined above will help you increase profits through improved employee productivity. Everyone likes to know where they stand with their employer. Our society teaches us that one measure of success in the workplace is based on the thoughts, ideas, and opinions of others. This fact can be used to motivate staff and move them to higher levels of productivity over a short period of time, using empirical data as opposed to anecdotal information.

An easy to understand, one-on-one, monthly review will generate profits well beyond your expectations, and improve employee performance and morale. Apply this best practice to your business today and watch it grow.

David Johns David Johns has a long history as a driving force behind the success of privately held pawn chains in the United States. The programs he has developed over the past twenty years to select and retain talented pawn shop employees is often presented in seminars and conferences around the country. His family has been in the pawn industry for several decades, and he is currently involved in establishing a new chain of shops throughout the Southeast.

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BUSINESS SENSE

Bankruptcy and Pawnbrokers

WHAT TO DO WHEN YOUR CUSTOMER FILES FOR BANKRUPTCY

by KURT KLINE, ESQ. MANY PAWNBROKERS HAVE BEEN AFFECTED BY THE rise in customer bankruptcy filings. hat will you do when your customer, their attorney, or a bankruptcy trustee notifies you that a customer has filed bankruptcy The answer to this uestion should be a critical part of your business plan. ou need to protect yourself.

If you make a wrong move regarding a bankrupt customer’s pawned property, you may become liable for the value of the pawned property, or may be assessed other sanctions by the court supervising the bankruptcy proceeding.

WHAT TO DO

In order to assure that you are watching out for your rights and assuming that title to the pawned property can pass to you, there are a few simple steps to follow: • Make sure you have fully complied with your state and local laws regarding pawn transactions and that you get advice from a lawyer who is an expert about the extra steps that the bankruptcy laws may re uire.

• Make sure you follow state and local laws regarding any waiting period or notice re uirements before title to the pawned property vests with the pawnbroker.

• iscuss whether the attorney is knowledgeable about both bankruptcy law and state or local pawn laws. Both are important in handling bankruptcy issues dealing with pawned property.

• Make sure you follow any rulings of the bankruptcy court regarding the customer’s pawned property.

• Be certain that your lawyer reminds the trustee of the special redemption time period provided for the trustee under the bankruptcy code amendment. This is pertinent to your right to foreclose on pawn collateral. nless the trustee redeems the property within the time period allowed, you are free to exercise your state-based right to foreclose.

If you need to challenge a bankruptcy court ruling regarding a customer’s case, you or your lawyer must challenge that ruling within days of the court ruling that adversely affects your claim to the property. Examples of such rulings include putting the pawned property into a reorganization plan or re uiring you to return the pawned property to the customer without first being paid in full for the pawn transaction.

STATE LAWS

Protecting your rights in a customer’s bankruptcy proceeding re uires some knowledge of bankruptcy law and procedure as well as compliance with state re uirements regarding foreclosure on pawn collateral.

Some customers will try to use bankruptcy to protect property that they have pawned. They hope to get the property back without repaying the funds advanced, to try to pay off the pawn loan on a modified schedule, or to defeat your ability to foreclose and resell the property. hile the federal bankruptcy laws take pawn collateral out of the bankrupt’s estate, if certain conditions occuri the customer’s attorney may still try and find a way to retrieve the property, whether or not it is considered part of the bankruptcy estate.

Some customers will try to use bankruptcy to protect property that they have pawned.

Make sure you are operating in accordance with state and local laws regarding pawnbrokers and pawned property before you are embroiled in bankruptcy proceedings. In particular, make sure that you understand how bankruptcy might change your right to give notice of default and foreclosure, or the timing of such a notice.

WHAT HAPPENS NEXT?

hen a person files for bankruptcy, several things happen. First, an automatic stay against creditors’ collection efforts immediately goes into effect. Second, the bankrupt’s property becomes part of the bankruptcy estate, with exceptions that include a special provision for pawned property discussed below. Third, the bankruptcy court appoints a trustee to represent the interests of any unsecured creditors of the bankrupt person.

THE AUTOMATIC STAY

The automatic stay stops all collection proceedings the moment the bankruptcy case is filed. This means that if you were about to foreclose on pawned collateral of the bankrupt consumer you should wait until the time periods described below have passed.

Stopping collection efforts includes halting any notice of foreclosure (Continued on page 55)

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VENDOR MEMBER SPOTLIGHT NEWS

Your Jade Expert: MASON-KAY NATIONAL PAWNBROKER MAGAZINE VISITED WITH JEFF Mason, G.G., President of MASON-KAY Fine Jade Jewelry, to find out more about identifying, valuing, and selling jade: National Pawnbroker (NP): Tell us a little about your company, Jeff.

Jeff Mason (JM): MAS N- A has been in the wholesale jade business since . ur family has owned and operated the business and has achieved a reputation for the finest uality jade jewelry and superior customer service. e buy and sell natural, jadeite jade. e also test jade for authenticity and uality repair jadeite pieces and give purchase and wholesale value determinations.

The pawnbroking industry is a great partner for MAS NA . e are always looking to buy beautiful jadeite jade.

NP: You specified “jadeite” in your previous answer. Is there more than one type of jade?

JM: Jade actually refers to two chemically different stones: jadeite and nephrite. Although different, they share many common characteristics.

Nephrite, the traditional form of jade, has been used for over years by many different cultures throughout the world. It was originally used for tools, indicating the strength of the stone.

The Chinese raised the craft of jade carving to an art form.

Jadeite is the rarest and most valuable form of jade. It is also known as Burmese Jade, after its source, Burma. It was discovered in the mid-late th century and has only been used widely since the mid- th century.

Today’s fine jewelry market uses jadeite jade, almost exclusively.

Nephrite is generally only valued for its anti uity, carving excellence, and other historical considerations rather than its intrinsic material value.

NP: What is the best color?

JM: ther considerations aside, the hierarchy of color value would be green, lavender, colorless (referred to as ice or icy jadeite), red, yellow, black, white, and gray. This is by no means an absolute scale.

NP: Tell me about treated jadeite?

JM: There is a lot of treated jadeite in today’s market. It isn’t seen as much with nephrite because it isn’t very valuable to begin with.

Although dyeing of jadeite has been around for decades, in the late s to early s, a new process for treating jadeite was created: polymer impregnation.

Jadeite is dyed to improve change the color. ne example is blue jade. There is no such thing as natural, blue, jade.

Polymer impregnation is used on low- uality jadeite that would, in most cases, have previously been left behind because

it contained fractures and or iron spots. This method involves acid treating the stone, which bleaches out the impurities, then impregnating it with a form of plastic which conceals the fractures.

NP: How can you determine if jade is treated?

JM: A gemologist can test for dye with standard gemological e uipment, but they may not always feel comfortable doing so because most don’t fre uently deal with jade. They will often send it to MAS N- A for review.

Infrared spectroscopy is the only test for the detection of polymer in jadeite. Currently, MAS N- A is the only commercial jadeite jewelry company to use infrared spectroscopy on site to test for polymer impregnation.

Although not definitive, other indications include how the stone is cut and the price value ratio.

Better gem material is cut to the best use of the rough to eliminate waste. A piece that is cut to an exact caliber or has a flat bottom would be suspicious.

A beautifully colored and carved bangle bracelet for is a giveaway that it is probably treated.

Go to Mason ay.com services for testing and valuation pricing.

NP: How is jadeite valued?

JM: All other things being e ual, pieces are valued on: • Color. Hue and intensity of the color. Green is always more valuable.

• Translucence. Although never transparent, jadeite can range from opa ue to very translucent. Better pieces will even exhibit a lovely glow’.

• Texture. Refers to even distribution of color and translucency. ith rare exception, the more even, the better.

(Continued on page 48)

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Register Now!

NATIONALPAWNBROKERS.ORG/GOVERNMENT-RELATIONS

NPA Legislative Conference

April 16, 2013

Hamilton Crowne Plaza Washington, DC Registration fee: $0 (Plan to arrive on Mon., April 15, 2013 for an early start on Tues. Plan to depart anytime on Wed., April 17, 2013.)

A special room rate of $269.00 is available to conference registrants. For reservations call 800-263-9802 and be sure to mention the NPA Legislative Conference to receive the special rate. Reservations must be made by March 25, 2013 to receive the group rate and are based upon availability in the group block.

For more information, contact: Matthew Church matthew@NationalPawnbrokers.org or 817-337-8830.

MAKE YOUR RESERVATIONS TODAY TO ATTEND THIS YEAR’S NPA LEGISLATIVE CONFERENCE Every member of the association is encouraged to be in Washington, D.C. and support the NPA’s most important effort to strengthen our legislative program. With so many new Congressional members this year, it is imperative that we have as many NPA members as possible meet face-to-face with their legislators.

The Legislative Conference is designed to educate members of Congress about the pawn industry. You will build important relationships with legislators and their staff that will provide a foundation for the future. A strong showing of NPA members in Washington, D.C. is vital to ensure our voices and concerns about the pawn industry are heard.

WHAT TO EXPECT Appointments with key legislators are scheduled in advance for you by the NPA, and talking points and informational handouts are provided before your Capitol Hill appointments.

SCHEDULE for April 16th 7:30 a.m. Breakfast at the Hamilton Crowne Plaza Hotel 9:15 a.m. Briefing: on current legislation. Newcomers will be paired with former participants to assist with meetings.

1 p.m. to 5 p.m. Capitol Hill visits 6-7 p.m. Reception-Rep. Jeb Hensarling, Chair House Financial Services Committee 7 p.m. Debriefing dinner at the Hamilton Crowne Plaza Hotel *Times are subject to change

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“Speaking as a 20-plus years NPA member, it is my firm belief that one of the most beneficial and rewarding events you can participate in is the annual Legislative Conference in Washington, D.C. I cannot stress enough the importance of your members of Congress knowing who YOU are and hearing directly about the services the pawn industry provides to consumers on a daily basis.

Just like us, our customers are their constituents, and there is no one better than the independent pawnbroker members of the NPA to tell the real pawn industry story on Capitol Hill.”

Fran Bishop, Dollar Pawn, Alabama “Last year was my first year to attend the NPA Legislative Conference. It was such an eye-opening experience having the opportunity to talk with my state’s elected officials and educate them on how the pawn industry actually works and the benefits it has not only to their constituents, but the local economy. Spending time with other pawnbrokers from across the country is also a joy, especially those NPA Board Members who work so hard for our industry.”

Kathleen Barbee, Lombard Financial Services, Texas “What a great experience the legislative conference is each and every year. The event provides pawnbrokers the perfect opportunity to meet with their federal legislators. Building a strong relationship with congressional members is important to the success of the NPA. The stronger and more united the NPA voice is on Capitol Hill, the more positive image lawmakers will have about our industry.”

Larry Nuckols, Brittex Financial, Texas

“The legislative conference is a good opportunity to get together with other pawnbrokers from across the nation and spend time with them with the common interest of protecting our businesses by educating our legislators. It gives us the chance to show them that the majority of pawnbrokers run professional and progressive businesses, with customer service in mind!”

Johnny Whiteside, Kendale Pawn Shop, North Carolina “I have learned a great deal participating in meetings with legislators and fellow pawnbrokers about issues that I truly care about. The legislative conference has given me the confidence and skills to protect my own business when I would have otherwise felt helpless.”

Jessica Barakat, Crown Pawnbrokers, District of Columbia “Protecting our industry at the National level. That’s the most important mission of the NPA. The legislative conference gives our industry an individual face. You can write letters and send emails every day of the year, but sitting down one-on-one with your Congress person or their staff establishes a personal connection with a constituent from their state. Those personal connections translate into ease of access for Team GRC when we need to speak with key committee members. They may not know us, but they remember that someone from home stopped in and visited them and taught them about the business. We often only get a few moments of their time. The less time we need to spend educating them on the basics and instead speaking directly about the legislation can be crucial. Your Congress person may just be that swing vote we need to pass or reject a piece of legislation. The legislative conference is where it all begins.”

Dave Crume, A-OK Enterprises, Kansas

Photos courtesy of Ken Smith, Cindy’s Pawn, Hemet, CA

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TECHNOLOGY

Why Do I Need a Website?

by EMMETT MURPHY, 3 CLiCk Media 3 CliCk Media is a digital design and online marketing firm that combines cutting-edge technology with tried and true new media strategies to build movements that make an impact, 3CLiCkMedia.com.

FOR YEARS PAWN STORES HAVE RELIED on traditional forms of marketing to generate new business and reinforce their share of the market within their region. Newspapers, yellow pages, television, billboard, radio, and display ads have been the primary focus of pawn marketing efforts.

However, if a pawn store’s marketing plan only consists of newspaper ads and word of mouth referrals, it is at a disadvantage when it comes to bringing in new business.

In order for pawn stores to bring in and keep customers, it is vital to build a website and establish a strong online presence.

ONLINE MARKETING

The industry has argued that pawn stores don’t need an online presence because customers don’t have computers. The fact is that computers and smartphones are being used by pawn customers. eb traffic analytics confirm that website visitors who use mobile devices to connect to pawn websites have increased in the last year, up to 30 percent.

A survey conducted by CNET shows that 51 percent of Americans shopped online this holiday season. Further studies show that up to 80 percent of people conduct an online search to find businesses.

IT IS TIME FOR A WEBSITE

A website is the single most efficient and cost effective way to market a pawn store. Compared with conventional marketing, the ability to attract new customers and generate online traffic is unprecedented. A good website can strengthen brand identity and marketing presence, and it puts your business in front of potential customers the moment they’re looking for something.

Through the use of search engine marketing, online reviews, and various other forms of online advertising, it’s becoming easier to reach a large amount and wide variety of customers.

You may even end up losing current customers if they are not able to locate contact information online. If they can’t find you, they may end up going to the competition.

PRESENTER

If your store is not online, you can be absolutely certain that your competition is there.

TOOLS OF THE TRADE

Search engine optimization (SEO), cost-perclick advertising, and other proactive online marketing techniques are an important part of making sure that your website listing can compete with others on search engines like Google. These techniques can improve your website’s position in the search results received by potential customers who are looking online for the services you offer.

Online reviews, other social media, and online ads can bring people to your business. Yelp is a widely used social media website whereby customers furnish their own reviews of local businesses. Many consumers look to elp first to learn about your business, and they connect directly to your website from the Yelp site.

Know that the longer a website has been established, the more likely the site will appear in search engine results. Establishing your business online sooner, rather than later, means a larger search engine presence in the future.

LOCATION, LOCATION

Customers have the ability to type search terms into a map or a search application and see a list of nearby businesses. If you don’t have a website, you simply won’t be found in these searches.

The potential to incrementally grow your customer base is huge, as the online marketing space for pawn has yet to be saturated. Consult with an expert or someone who has strong online marketing savvy. Oftentimes the instinct to hire a relative or college student to handle online marketing ends with poor results.

A website simply makes sense. It can reach the largest pool of customers in the most cost effective way. A pawnbroker who opts not to have a website opts not to be discoverable in today’s technological world.

Emmett Murphy 3 CLiCk Media

How to get started Get your pawn store online with a website Set up a Google account for your business Claim your business listing on Google Places via Google Maps Populate the Google listing with information and images Set up social media accounts for your business Encourage or incentivize customers leaving good reviews or a Google +1 Explore Google Adwords for pay per click advertising Consider setting up an account with Yelp Consult with an expert

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Successful Multi-Store Operators run CompuPawn!

The Brand to Trust. The Brand to Help you Grow.

CompuPawn Pawnshop Client

Number of Stores

Years Using CompuPawn

Selling Price in the past 18 months

Mexico-based Client Colorado-based Client Texas-based Client Las Vegas-based Client

29 stores 17 stores 17 stores 11 stores

9 years 15+ years 20+ years 10 years

$ $ $ $

Totals

74 stores

47,500,000.00 46,000,000.00 42,000.000.00 34,500,000.00

SOLD SOLD SOLD SOLD

$171,000,000.00

CompuPawn stores are better run, better organized, more efficient, highly profitable, and SELL for MORE!!

That’s just one reason to move to CompuPawn. Whether you want to sell your stores or keep them, CompuPawn has a proven track record of making our customer’s stores worth MORE! There must be a reason for that.

Just ask Craig McCall, A CompuPawn customer for 10 years, who has sold a combined 23 Stores: “We have been able to successfully grow our stores and a key element in our growth has been using CompuPawn. We rely on them for data integrity, reporting and compliance at all levels.

They continue to be our strategic partner and we value their 30 years of success in serving the pawn industry. We didn’t want our IT in the hands of any other software product. We considered other vendors, but we have chosen to use CompuPawn now and in the future” Our customers have spoken loud and clear, CompuPawn is more than a software system. CompuPawn is a brand that delivers multiple benefits.

The CompuPawn brand enables our customers to achieve their business goals and objectives.

In 2013, we will continue to work diligently and intelligently to make CompuPawn your primary business vendor and partner. Why wait?

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COMPLIANCE

How to Conduct an Inventory FOR FEDERAL FIREARMS LICENSEE

by JOHN BADOWSKI, FIREARMS INDUSTRY TECHNICAL ADVISOR BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES 202-648-7102, JOHN.BADOWSKI@ATF.GOV

THE BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND Explosives (ATF) recommends that all licensed pawnbrokers conduct fre uent inventories to ensure accountability of firearms.

There are four general steps that will assist you in ensuring that all firearms on the premises are recorded in your ac uisition and disposition (A& ) record, and that all firearms which are no longer at the licensed premises have had dispositions recorded.

1

Count both the firearms in inventory and the total number of open dispositions. An open disposition is a firearm recorded as an ac uisition in the A& record which does not have corresponding disposition information.

Any firearm with an open disposition should be in the physical inventory. If there is a difference between the numbers, you are probably not properly accounting for your firearms. Even if the numbers match up, ATF recommends you continue with the following steps.

2

Create a list of all firearms in the physical inventory.

All firearms that are part of the business inventory should be included on this list. Record all identifying information derived from the firearm itself, not just from its box.

3

Compare this list to the A& record. Each firearm in your business inventory should be recorded as an ac uisition with a corresponding open disposition. Review the list, one firearm at a time, and ensure that each firearm is accounted for in the A& record. Place a check mark next to each firearm on the list so you have documented each firearm for which you have accounted.

potentially be missing from inventory. ou must now find that firearm by reconciling the firearms in inventory to the open dispositions.

Any firearm not entered into the A& record must be recorded. Consult any commercial records to determine the date of ac uisition. If no ac uisition date can be ascertained, enter the date of acquisition as the date you are conducting this inventory reconciliation.

Any open disposition without a corresponding firearm in inventory must be located. Check your ATF Forms and other commercial documents, to include transfers to other FFLs and returns of repaired firearms, to determine the final disposition of the firearm. Also, re-check the firearms in inventory. Ensure that you have recorded every single firearm in inventory on your list. If you are able to locate the disposition information, be sure to record the disposition in your A& record. If you are unable to locate the firearm or its corresponding transfer paperwork, you must report the firearm as missing to ATF.

IF YOU DISCOVER THE THEFT OR LOSS OF A FIREARM, YOU MUST: • Notify local police • Report the incident to ATF within hours of discovery by calling • Complete ATF Form . and submit it to ATF • Log the applicable firearms out of the A& record as lost or stolen. Include the date of incident as the disposition date, and include the ATF issued incident number and the local police report number, if applicable.

4

Compare the open dispositions to the list of firearms.

Using a pencil, place a small check on the disposition side of the A&D record for all of the open entries that match up to the list. Any open disposition without a check mark mean that a firearm could be missing.

If at any point after submitting ATF F . you discover missing firearms in inventory or have located disposition information for a missing firearm, please contact ATF immediately by calling .

5

As a licensed pawnbroker, it is imperative that you account for each firearm in your business inventory. The bottom line for you is that each missing firearm will cost you money. The bottom line for ATF is that we ensure all firearms stay in lawful commerce.

Reconcile your inventory. Any firearm on the list without a corresponding check mark has not been entered into the A& record. Any open disposition without a corresponding penciled check mark could

WHY IS CONDUCTING AN INVENTORY IMPORTANT?

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BUSINESS SENSE

NSSF® Has Your Back

by GLENN SAPIR, NSSF Director, Editorial Services AS A FEDERAL FIREARMS LICENSEE (FFL), AND especially as a member of the National Shooting Sports Foundation (NSSF,) you have support when you really need it.

The NSSF recognizes the threat that theft or natural disasters can present to a firearms dealer. That’s why, among its many programs and retailer benefits, NSSF has instituted two that directly address these catastrophes.

HURRICANE SANDY

Soon after Hurricane Sandy carved a destructive path along the eastern U.S., NSSF announced a disaster relief effort to help members who were affected. With the quick approval of its board of governors, NSSF made $125,000 in dedicated aid available for business loss or damage resulting from Hurricane Sandy. These funds were available to qualifying member companies located in federally declared disaster areas, with an emphasis placed on providing relief to store-front, federally licensed firearm retailers and shooting ranges.

The funds were available to members suffering significant financial hardship who were unable to pay for critical and immediate expenses to resume business.

THEFT

NSSF has had a long-standing policy of offering a reward of $5,000 for information leading to the arrest and conviction of the person or persons responsible for the theft of firearms from federally licensed retailers. That potential award matches a $5,000 reward offered by The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

These matching rewards are a natural extension of our partnership with ATF to prevent firearms from being obtained illegally through the anti-straw purchase retail and public education initiative, on’t Lie for the ther GuyTM. NSSF offers numerous benefits to all FFLs, and even more to NSSF members, some of which are directly aimed at firearm theft protection. To learn more about NSSF membership and its benefits, visit nssf.org industry members .

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G E N E R AT E N E W P R O F I T S W I T H G A R R E T T ’ S P O W E R F U L Y E T A F F O R D A B L E M E TA L D E T E C TO R S

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ACE 250 user Bill W. found this diamond ring—appraised at $4,665—in a lake in Lake City, MI.

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(Above) Reaghan M. of Pawtucket, RI, and her husband John split the cost of their first ACE 350. They found this 334-gram 18k gold chain and charm. Its value was enough to help them get married and buy wedding rings!

Colleyville, TX resident Bob F. was hunting a freshwater lake swimming area when he found this impressive 49-diamond, 14k gold ring.

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MEMBER NEWS

NPA Premier Awards DO YOU KNOW OF AN NPA PAWNBROKER OR INDUSTRY partner member who has done extraordinary things for the pawn industry? If so, nominate them for one of NPA’s Premier Awards.

All nominations must include the nominator’s name and contact information; the name of the person being nominated and their contact information; and the reason for the nomination.

The awards will be presented at Pawn Expo 2013 in Las Vegas. All nominations must be sent to NPA, PO Box 508 Keller, TX 76244 or faxed to 817-337-8875, and recieved by May 1, 2013. If you have any questions, contact Dana Meinecke at dana@NationalPawnbrokers.org, 817-337-8830.

• Pawnbroker of the Year: Presented annually to an NPA member who, through his/her performance, has achieved significant accomplishments nationally for the pawnbroking industry. The nominee must be an active, licensed pawnbroker and must be a NPA pawnbroker member in good standing.

• Industry Partner of the Year: Presented annually to an NPA Industry Partner member who, through his/her per-

Stan Tidwell of Standon, Inc. receives the 2012 Pawnbroker of the Year Award from Kevin Prochaska, NPA President.

formance, has made a significant contribution nationally to the pawnbroking industry. The nominee must be a NPA Industry Partner in good standing.

• Charles R. Jones Lifetime Achievement Award: Presented periodically to an NPA member who, through his her performance, has achieved significant accomplishments for the pawnbroking industry nationally over their entire career. Individuals may be nominated by another NPA member or by a state pawnbrokers’ association. The nominee must receive more than one nomination to be considered for this award. The nominee must be an active, licensed pawnbroker and must be a NPA pawnbroker member in good standing.

COMPLIANCE

NICS News DUE TO THE PRIVACY ACT OF 1974, THE National Instant Criminal Background Check System (NICS) section of the Federal Bureau of Investigations cannot provide the reason for your customer’s delay or denial over the telephone.

If a prospective transferee has had extended delays or has been denied the transfer of a firearm, the Federal Firearms Licensee (FFL) should give the individual a NICS resolution card. The FFL should circle the word “DELAY” or “DENIED” on the top portion of the card and write the NICS transaction number on the line provided on the bottom of the card.

The NICS resolution card directs the customer to the NICS appeal website, fbi.gov/nics-appeals, for customers to begin the Voluntary Appeal File (VAF) or appeal process.

PRESENTER

Customers without Internet access may contact NICS customer service at 877-FBI-NICS (324-6424) for a packet to be sent by U.S. mail.

NICS FFL WEBSITE

The NICS FFL website, fbi.gov nics-ffl, gives immediate access to all types of information pertaining to the NICS and the NICS background checks.

Through the NICS website, your customer can view the NICS Process and/or the VAF Process videos; review the NICS Federal Prohibitors; and obtain general NICS Information. Your customer can also begin the appeal process (denied customers only) or the VAF process (extended delayed customers).

Kim Brown, NICS Section FFL Liaison Specialist nicsffl@leo.gov

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July 16-18, 2013 The Cosmopolitan of Las Vegas What is Pawn Expo?

Pawn Expo is the only national convention and trade show for the pawn industry. You will learn new ways to strengthen your business, connect with fellow pawnbrokers, and do business at the trade show featuring over 120 different companies. Leave energized and equipped with the latest industry knowledge.

Pawn Expo Highlights Opening Session – Columnist, author, and small business owner Gene Marks will deliver the keynote address “Economic, Political, and Other Key Trends: What’s Happening Today that Will Affect Your Business Tomorrow.”

Make money at Pawn Expo.

Welcome Reception – As the premier social event of the convention, this reception boasts the highest attendance and one of the best opportunities you will have to relax with your fellow attendees.

Trade Show – The Pawn Expo Trade Show is the largest and most comprehensive trade show in the pawn industry. Spanning two days, this is the perfect place to find the products and services vital to the success of your business.

Bring your diamonds to sell in the privacy of the secure Diamond District trading room.

Here you can negotiate the best deal with any vendor you choose. No appointments required.

Annual Membership Meeting and Awards – Enjoy breakfast and find out the latest NPA news. Annual award winners and scholarship recipients will be recognized during the program.

Closing Reception – Held at the Chandelier Bar, this event is the ideal way to spend your final evening in Las Vegas.

Questions? – 888.808.7296 | www.PawnExpo.com

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Why Should I Attend?

• Learn during educational sessions designed to give you the tools to strengthen your business and overcome challenges facing pawnbrokers today.

• Connect with pawnbrokers from across the U.S. and the world and share your experiences. The most important resource could be the person sitting next to you.

• Do business at the trade show, where you can visit over 120 vendors who understand your needs, and represent goods and services that pawnbrokers use everyday such as security, software, jewelry tools, and much more.

Creating a Blueprint for the Future NPA is creating a blueprint for the future of the pawn industry.

Be a part of it by attending Pawn Expo.

OW! N R E ST om REGI Expo.c . Pa www

What’s New in 2013?

• Networking Reception on Monday Night – New for 2013, the event is designed to help attendees connect at the very beginning of the convention. t is a ust for first ti e attendees and anyone interested in networking at Pawn Expo.

• Pawnbroker Peer Roundtables – The pawnbroker sitting next to you is one of your greatest resources. At the roundtables, attendees have the opportunity to discuss current pawn topics with their peers and learn best practices from one another.

• Education Sessions – Get ready to learn with a brand new slate of education sessions designed to help you build your own blueprint for the future.

• Pawnbroker Luncheon on Tuesday – Relax between education sessions and enjoy lunch.

• New Schedule – Enjoy a new schedule that helps you make the most of your time at Pawn Expo.

Advocacy is the key driver of NPA’s legislative efforts, and it starts with you. Learn to develop relationships and communicate with local, state, and federal legislators. Gain a better understanding of how the legislative process works and how your voice can be heard as a representative of the pawn industry.

Education is ongoing and ever changing. Keeping up with current trends and learning new ways to improve your business and the industry will keep us all successful.

Connections affect every part of your business and your industry.

Whether it’s a relationship with a fellow pawnbroker, local law enforcement, key legislators, or a superb vendor, they can all impact your life and business in positive ways. Understand how these connections are critical to your success and how your goals are usually not so different than those of the person at the other end of that connection. These relationships are a key resource in our mission to move the pawn industry forward.

wn

Questions? – 888.808.7296 | www.PawnExpo.com

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NPA On line Res ources

Personal and Store Security

Education Sessions Opening Session

Keynote Speaker Gene Marks “Economic, Political, and Other Key Trends: What’s Happening Today that Will Affect Your Business Tomorrow”

Federal e Complianc

Columnist, author, and small business owner Gene Marks will deliver this dynamic keynote address where you will find out what today s winning companies are doing to make sure they re earning profits to orrow.

A full list of education sessions and speakers is available at www.PawnExpo.com.

NICS FFL Federal Prohibitors

Hallmarks and Trademarks on Precious Metals

Grassroots Advocacy

Intern Marke et ting

Hiring s ice Pract

Customer Service at the Pawn Counter t ernmen e v o G A NP tte Commi s n o i t Rela

Schedule of Events* Monday, July 15

Tuesday, July 16

Wednesday, July 17

Thursday, July 18

11:30am – 6:30pm Convention Registration

7:00am – 5:00pm Convention Registration

7:00am – 4:00pm Convention Registration

8:00am – 12:00pm Convention Registration

1:30pm – 6:30pm Diamond District

8:00am – 9:15am Opening Session

8:00am – 9:00am State Presidents Breakfast

5:30pm – 7:00pm Networking Reception

9:30am – 5:30pm Diamond District

8:00am – 9:45am Annual Membership Meeting and Awards

9:30am – 5:00pm Education Sessions 12:15pm – 1:45pm Pawnbroker Luncheon 7:00pm – 9:00pm Welcome Reception

10:00am – 11:20am Education Sessions and Pawnbroker Peer Roundtables 11:30am – 5:30pm Trade Show 4:00pm – 5:30pm Trade Show Reception

9:00am – 1:30pm Trade Show 1:45pm – 4:15pm Education Sessions and Pawnbroker Peer Roundtables 5:30pm – 7:00pm Closing Reception * Schedule is subject to change

Questions? – 888.808.7296 | www.PawnExpo.com

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Hotel Information

Sponsors

The Cosmopolitan of Las Vegas

3708 Las Vegas Boulevard South | Las Vegas, NV 89109 Oversized living spaces. Private terraces. A collection of gourmet restaurants. Onsite bouti ue shops and night clubs. hat s the new definition of conte porary hotel lu ury and what’s waiting for you at The Cosmopolitan of Las Vegas.

NPA Room Rate

City Room/Terrace Studio, single/double: $139.00 Terrace Suite: $500.00 Reservations and Resort Services: 877.551.7772

The NPA rate is available until June 21, 2013, based on availability.

Visit www.PawnExpo.com for information on how to make online reservations.

Airfare Discounts A 5% discount off the lowest applicable published fare is available to attendees that book travel with American Airlines.

Online reservations can be made at www.AA.com. Choose “More Flight Search Options” and insert promotion code 2173DH in the appropriate box.

Phone reservations can be made by calling American Airlines at 1.800.433.1790 from anywhere in the United States or Canada and referring to your promotion code.

Please note that additional reservation charges apply for phone reservations.

The discount is valid for travel between July 12, 2013 – July 22, 2013.

Questions? – 888.808.7296 | www.PawnExpo.com

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FEATURE ARTICLE (From page 22)

Maintaining a Strong Bank Relationship Your bank wants and needs to see a professional, well-oiled operating machine in order to have that warm and fuzzy feeling. This is what helps them feel comfortable servicing your accounts.

5. Thou shall communicate!

Do you see something your bank is doing that they didn’t do before? Are they treating you differently?

Communication is the key! Don’t presume a major change in your relationship with your bank was just coincidental. Always keep an open line of communication. on’t wait until a bonfire becomes an inferno.

At the end of the day, your bank is possibly the most important business relationship you will ever have unless you simply deposit all of your money under your mattress. You must be, or at least be perceived as, a top notch business operator in the eyes of your bank. If not, expect bank discontinuance or, even worse, ongoing reviews and audits by your bank that you may never even know about until it’s too late.

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DAZZLING DUOS AND TRIOS Twice is nice, but three is even better!

Scenario: Getting engaged is a happy time, but high precious metal prices have put a less-than-desirable strain on your customer’s pocketbook. He’s in the market for something that will make her heart skip a beat, not his wallet. And she’s looking for something as brilliant as she is. So, where do you turn?

Solution: With Stuller’s duos and trios, you’ll have a large assortment of bridal pieces to showcase. At ready-to-sell prices, these sterling silver engagement bands feature the diamonds your customers are looking for in the styles they love–all at attractive, affordable price points. Packaging is included.

Visit stullerpawn.com/duosandtrios today and have your customers saying “I do” before they ever leave your store.

“I’m Andy the Tool Guy. In 1999, I became part of the Tools Division at Stuller, Inc. Since then, I’ve been the guy people talk to when they need the right tool for a job.

Any job! Let me be the guy you talk to when you need something.”

For more information call us at 800-877-7777 or visit us online at stullerpawn.com.

Stuller.com

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FEATURE ARTICLE

(From page 23)

Preventing Bank Discontinuance •

eveloping policies, guidelines, and employee training procedures within your business that outline how you will detect, prevent, and report transactions that may involve money laundering or other suspicious activities.

• Ensuring that your software is compliant and interfaces with the ffice of Foreign Assets Control ( FFAC) list. The FFAC list outlines specific individuals and organizations that may not engage in financial transactions with .S. persons.

• Conducting a bi-annual independent review of your AML program. Most mid-sized to larger CPA firms can conduct this review and provide the independent report that is re uired.

• pdating your registration with FINCEN every two years.

2

If you have not done so, develop a relationship with your banker. Today, the pawn business is based in large part on personal relationships, and the banking world is no different. our banker may be your loan officer or the manager of the branch that you deal with, but it is important that you get to know this person. Invite them to your store, show them how your business works, and answer any uestions they may have.

The more your banker understands your business and the record keeping re uirements, the more comfortable he or she will be in helping you deal with the bank’s compliance department.

If you have a contact in your bank’s treasury department, or a relationship with a more senior manager, invite those people to your store, as they are often involved in the compliance process.

The compliance department for most banks now has an annual compliance report uestionnaire that is re uired from customers that are MSBs or in a similar line of business. ou should be prepared annually to submit your written AML program to your bank along with your FINCEN registration, your bi-annual independent review, and any reports that result from an AML compliance audit of your business that originated at either the federal or state government level.

Showing your bank that you are a proactive customer that is not only aware of the re uirements under the Patriot Act, but also has a robust program in place to ensure compliance, will help keep your banking relationship on a solid footing.

The NPA has information and resources available to assist you in developing your own AML program and there are individual NPA members that are more than willing to provide assistance either on the Member Forum or through direct conversations. hile there is additional work involved in developing and maintaining a good AML program, it is a minor inconvenience in comparison with the headaches and disruptions that can occur when a bank decides they no longer want you as a customer.

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BUSINESS MEMBER NEWS SENSE

Saddle Theft A NEW SOLUTION

C ST M-MA E SA LES F R RI ERS H compete in affluent competitions sell for , to , . espite the high-end environment associated with e uestrian competitions, saddle theft is all too common. Thieves hoping to make uick profit scour horse show grounds looking for the opportunity to walk away with a saddle they can uickly resell.

ENTER, SADDLE NETWORK

Launched in September of , Saddle Network introduces a revolution in theft prevention with its innovative system of visible tagging, archiving, and social networking.

The key is visible tagging, combined with a platform of community watch that aims to change the old, reactive way that victims and thieves alike respond to theft.

Mary Braly, Saddle Network founder, explains, If the thief can see a visible I tag, they’re less likely to take the saddle If someone is silly enough to try, the easily seen tag can be verified by anyone with a smart phone by scanning the tag’s R code, or entering the I number via our website.

If the tag is removed, the rivet holes left behind in the leather are a clear red flag that the tagged saddle was illegally taken from its rightful owner.

Even without the tag, it can be found through Saddle Network’s online search function. eep your eye out for the Saddle Network tag, and if you see it, be sure to go online at SaddleNetwork.com to uickly and easily check the saddle’s legitimacy.

VENDOR SPOTLIGHT (From page 28)

Your Jade Expert: MASON-KAY NP: What materials are often mistaken for jadeite?

JM: Jadeite is probably the most mis-identified of all important gemstones. There are many minerals that have a passing resemblance to jadeite and nephrite.

Common jadeite fakes include serpentine (also bowenite), carnelian, aventurine uartz, glass, grossularite, idocrase, soapstone and the most common, dyed green uartz. This is not a complete list.

Bear in mind that materials known as new jade, Honan jade, orean jade, metajade and Sinkiang jade are almost never actually jade. The term jade is synonymous with precious in Chinese and thus orean jade may be no more made from jade than a golden sunset from gold.

It is important to consult an expert before you make a determination about the authenticity or value of any jade piece.

NP: What is the process for valuing or selling a jadeite piece?

JM: First of all, don’t hesitate to pick up the phone and call MAS N- A with uestions. ou can also go to our website, Mason ay.com, and go to the Sell our Jade page. e make it easy for you to send us pictures with the submission form. e are a trusted leader in the jewelry industry and take that responsibility seriously.

ne of the big benefits of working with MAS N- A appraise your jade is that we are a potential buyer.

to

NP: What are recent trends in price?

MK: hereas most gemstones today are sold and evaluated in terms of their carat weight, jade is sold by the piece. In its finer ualities, it can be among the most expensive stones in the world today.

Interestingly enough, estern countries don’t dictate pricing.

Pricing is determined primarily in Asia by countries such as China.

Their improving economy over the past 5-10 years has increased the price, but mostly on higher end goods. There has been a slight slowdown in price growth in the last year.

NP: What are the most common mistakes in buying jadeite?

JM: Most jadeite out there is treated. Buyers have to be very careful. The most common mistake is buying jadeite that is treated, or may not be jade at all.

Just contact us. e’re happy to help

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FEATURE ARTICLE (From page 20)

Identifying Hallmarks and Trademarks These marks are placed by independent laboratories and are usually specific in design and information for that individual country. These marks are called hallmarks and are the guarantee that the item was independently tested for accurate metal fineness by a regulated or government assay office.

Hallmarks should not be confused with a maker’s mark or trademark, i.e. the sponsor of the piece or person responsible for its import.

and hallmarked again by the importing country. These marks are applied along with the maker or sponsor’s mark.

Currently, countries are members of the Hallmarking Convention and use the CCMs. This procedure has be so successful, that many non-member countries which have compulsory hallmarking laws now legally permit Convention marked items into their country without those items being re-assayed and re-hallmarked.

This small mark found on a pair of cufflinks tells us that this item was tested to be 14k gold (4th standard) and hallmarked in Vienna, Austria (W), sometime in the years 1922-1925

MORE $

A hallmark, or a se uence of hallmarks, can offer a great deal of information about when and where an item was made or manufactured. A hallmark can identify the precious metal standard (fineness), the country of origin, the city or town in which the item was assayed, the actual year (or range of years) when the item was hallmarked, the size (small or large) or weight of the item, and in some cases even identifies the assay master.

A properly hallmarked item can substantially influence the value of an item.

For example, a fine, Art eco period, platinum jewelry piece with French hallmarks is certainly far more desirable and worth more than a similar piece without the hallmarks.

From left to right these UK hallmarks tell us the maker (M&W – Mappin & Webb), the Crown for Sheffield Assay Office, the Lion Passant is the hallmark for 925 silver, and the L is the year date letter for 1953 which was the year of Queen Elizabeth’s Royal Coronation as seen in the commemorative hallmark on the far right.

The hallmark above is the Swiss National St. Bernard’s head mark used since 1995. The ‘G’ in the profile represents the town where the item was hallmarked - Geneva. On the left is the Common Control Mark for 18k (750), designed by the Hallmarking Convention that allows this item to trade within at least 21 countries without the need to retest and re-mark when imported.

AMERICAN HALLMARKS

nfortunately, in America there are no hallmarking laws. hen precious metal items made here are exported without hallmarks, other countries fre uently do not accept them without re-assaying and re-hallmarking by the by the importing country.

In the .S., what precious metal laws we do have are not regularly enforced, whether the item is domestically produced or imported. Conse uently, there are serious cases of under-karating gold jewelry. This amounts to fraud by the manufacturer and the retailer, and ultimately affects the unsuspecting consumer. .S. Customs and State law enforcement are becoming more aware of this problem and are realizing that, by law, they have the power to seize and suppress the trade of fraudulent items at the border. atch for more information from the Hallmark Research Institute in future issues of National Pawnbroker magazine. The Institute will also be presenting at Pawn Expo .

CONVENTION HALLMARKS

Starting in the early s, a group of European countries joined together and formed what is now known as the Hallmarking Convention. The objective was simple: to establish a Common Control Mark (CCM) that everyone would recognize as an international guarantee of fineness when used with an individual and distinct national or regional assay office mark identifying the origin of the item.

Any precious metal item with Convention Hallmarks can legally be sold in any other member country without being re-assayed

This combination of marker’s trademark (W&G - Unknown) with a plain fineness mark (14K) is classic North American style of marking as prescribed by law in the USA and Canada. These are not to be confused with hallmarks.

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GOVERNMENT RELATIONS

Fundraiser for Congressman David Scott SUPPORTING KEY LEGISLATORS

Left to Right: Herman Russell, Henry “Hank” Aaron, David Adelman, Former UN Ambassador Andrew Young, and Congressman David Scott

David Adelman, President/CEO of Adelman Business Solutions and Past President of the National Pawnbrokers Association, poses with Congressman David Scott at a fundraising event in October 2012.

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STATE NEWS

State Association Updates WHAT’S GOING ON ACROSS THE COUNTRY

ILLINOIS David Schoeneman President Illinois Pawnbrokers Association Schoedad@aol.com NOW THAT THE HOLIDAY SEASON IS BEHIND US and most of the “rapid refund” redemptions are over, it’s time to address the new legislative year. ur efforts in Springfield are focused on uniform gold buying rules. We hope to create the level playing field that is so often spoken about.

You should already have your made your reservations for the NPA Legislative Conference! The event is April 16, 2013 Washington, D.C. We need to show our legislators who we are what we stand for, and direct contact is the best way to educate them. Protect your business—if you don’t who will?

FLORIDA Tom Howard President Florida Pawnbrokers Association thoward@wwjpawn.com The Florida Pawnbrokers Association (FPA) is excited to announce that Tom Howard of Worldwide Jewelry & Pawn, will be stepping in as President of the FPA due to Tom Sams’ retirement.

They will be working closely together for the first uarter of 2013 to assure a smooth transition.

Tom Howard will be contacting you soon to check in and discuss the future of Florida pawn. Feel free to contact Tom Howard with uestions at: - .

MISSISSIPPI Kevin Macdonald Mississippi Pawnbrokers Association sterryroadpawn@gmail.com Everything continues to run smoothly in Mississippi. Our legislature is gearing up for its session, which runs January through March . e have been checking for pre-filed bills, and so far nothing has turned up, but we know that can change at a moment’s notice. e are very excited about The ixie Pawnbroker Educational Conference and Trade Show this year at the Hilton New Orleans

Riverside. Rosemary Hipps and the great folks from Alabama are handling the bulk of the work and have secured vendors for the trade show. Go to dixieconvention.com to register. I will see you in The Big Easy April - , e are proud that Rowan Middle School, Jackson, MS was selected as one of the recipients of the fourth annual NPA Musical Instrument Gift Day. Instruments, and cash to purchase instruments, were donated to the school through The Mr. Holland’s pus Foundation by generous pawnbrokers and vendors from all over Thank you so much for all of your generosity Start making your plans to attend Pawn Expo this year in egas It won’t cost you money it will make you money

MISSOURI Rob Lauer North County Pawn Center Jennings, MO rob@pawncenter.com In the past two years, the Missouri General Assembly has tried to pass legislation controlling gold and silver buyers. Several bills have been introduced, but none have passed.

In December, I met with the new House Majority Floor Leader, John Diehl. He intends to introduce a bill this coming session that would regulate metal buyers in a manner similar to that enjoyed by pawnbrokers. He assured me that he has no intention of amending our statute or including us in the new legislation. I agreed to help him by testifying at legislative hearings in support of the bill.

At that meeting, I presented the Representative with checks for the House Republican Campaign Committee from individual Missouri pawnbrokers. He was impressed with the number of checks, as was I. Thanks to all of you who sent me the checks for the presentation. Making contributions like this and not asking for anything in return gets their attention.

We have again contracted with Burton-Liese for lobbying efforts for the upcoming legislative session. We now have Chris Liese and Gary Burton in addition to three other lobbyists watching out for us. They are all ex-legislators and very familiar with the how the political process works.

The Greater St. Louis Pawnbrokers Association became a Bronze Sponsor of the C.O.P.S. organization with their recent donation. C. .P.S. benefits the survivors of police officers killed in the line of duty. I had the opportunity to meet the president of C. .P.S., who expressed her appreciation for all that pawnbrokers do for the organization.

(Continued on page 55)

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BUSINESS SENSE (From page 26)

Bankruptcy and Pawnbrokers you might have been preparing to send to a customer and halting the foreclosure itself until an applicable grace period has expired.

However, it does not mean that pawnbrokers cannot enjoy the special rules for pawn transactions that came as part of the 2005 amendments to the Bankruptcy Code. The automatic stay does not apply to pawned property once it is no longer considered part of the bankrupt estate. This follows the latter of the 60-day federal or state-mandated period for redemption of the property described in the next section of this article.

2005 AMENDMENTS

The 2005 revisions to the Federal Bankruptcy Code make it clear that pawned property is NOT a part of the bankrupt estateii if the bankruptcy trustee does not assert a claim to the property in the first days after the customer files their bankruptcy petition, or longer if the state allows additional time.

After this time period, you are able to assume title to the pawned property and dispose of it as state or local law allowsiii. The debtor, or the bankruptcy trustee, would have to pay the pawnbroker all of the charges associated with the pawn transaction at one time within the LATTER of either 60 days from the customer’s bankruptcy

filing date, or the time period allowed for pawn loan redemptions as mandated by state or local authorities.

Once the applicable waiting period expires without redemption by the trustee or the customer, title to the pawned property passes to the pawnbroker. In some states, of course, the pawnbroker must hold a foreclosure sale instead of merely waiting for the grace period to expire. It is wise to contact a local attorney to make sure you have taken all steps necessary to assume title to the pawned property before selling or otherwise disposing of it.

There is a possibility that you may need to make an argument to the bankruptcy court explaining why the pawned property is not part of the bankruptcy estate. Because the 2005 amendments to the Federal bankruptcy laws and new section 541(b)(8) only apply to pawn transactions, you may need an attorney to explain to the court and the trustee the effects of these changes on pawned property.

The interplay between sections 108(b) and new 541(b)(8) gives the trustee or the pawn customer a chance to redeem the pawned property. The trustee is likely to redeem pawned collateral only when the value of the collateral exceeds the amount of the pawn transaction including accrued charges. Redemption requires paying all accrued pawn charges to the date of redemption.

(Continued on page 56)

STATE NEWS (From page 54)

State Association Updates NORTH CAROLINA Bob Moulton President North Carolina Pawnbroker’s Association moultonbob@yahoo.com The North Carolina Pawnbroker’s Association will host the 2013 Southeastern Regional Pawn Convention. The event will be held in beautiful Asheville, NC during peak leaf season!

We have our work cut out for us. Can we top the event that our friends from Georgia put together in Atlanta? It was the best convention ever!

We look forward to making a noble attempt at it. Please come! If you don’t think that it is as good as the one in Georgia, meet me at the bar and I will provide you some “truth serum” until you are thoroughly convinced!

Make sure that you schedule an extra day to drive down the Blue Ridge Parkway. At peak leaf season, it is not to be missed. We look forward to seeing all of our vendor and pawnbroking friends in October! More information is available at www.pawnnc.com.

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BUSINESS SENSE (From page 55)

Bankruptcy and Pawnbrokers Here are some pointers on how these provisions work. If the customer or trustee does redeem the pawned property within the allotted time period, title to the pawned property does NOT pass to the pawnbroker. If no redemption occurs in that time period, the following apply: • Section (b)( ) takes the pawned collateral out of the bankruptcy estate when the trustee’s right to redeem under section (b) expires.

• Section (b) limits the time you have to wait to foreclose on the property, as described above, because it forces the trustee to make a decision in a timely manner.

• Because sections (b) and (b)( ) work to keep pawn collateral out of the estate, pawn collateral should not be eligible for inclusion in reorganization plans by a Chapter or petitioner. If your customer seeks to include the pawn collateral in a reorganization plan, ask your lawyer to assist with a motion opposing its inclusion in the plan.

CONTACT YOUR ATTORNEY

Always contact a local attorney for advice when a customer files for bankruptcy. Your attorney will: • ouble check local, state, and federal laws to make sure you are in compliance with regulations regarding pawn transactions, bankruptcies, and the applicable time period before title to the customer’s pawned property passes to you • Advise you on your rights as a creditor when a customer files for bankruptcy • Make any necessary arguments on your behalf • eep you apprised of any court appearances, or other arrangements, you may need to make • Advise you on when proper title to the pawned property has passed and when you can dispose of the property as you wish • Advise you on what you should do after being contacted by a customer’s attorney or a bankruptcy trustee concerning the customer’s pawned property • Help you prepare an argument in case the trustee or customer tries to claim the pawned property as part of the bankruptcy estate • Prepare a brief explaining to the court why pawned property is not part of the bankruptcy estate • Explain to the court the interaction between .S.C. and .S.C. (b) and any local or state statutory period governing the amount of time that must pass, without redemption, before proper title to the pawned property passes to the pawnbroker

FIND A LAWYER

ou can find an attorney that specializes in bankruptcy and creditor’s rights through your local or State Bar Association. Most State Bar Associations have lawyer referral services that will help match you up with an attorney who specializes in bankruptcy, collections, or both. If not a simple web search or look through the yellow pages will help you to find bankruptcy and or creditor’s rights attorneys who deal with many of these issues on a day-to-day basis.

It is important to find competent counsel to guide you through the bankruptcy process, protect your rights in the pawn transaction, and let you know when proper title to the pawned property has passed from the customer to the pawnbroker.

It is important that you keep abreast of developments regarding the bankrupt customer and the pawned property. You may need to make court appearances, arguments, or both.

WAIT FOR CLEARANCE

our attorney will advise you when you may exercise your right to proper title of the pawned property. This will help you avoid the risk of sanctions by the bankruptcy court or a conversion action brought by the customer who originally pawned the property.

Kurt Kline is a 2008 graduate of the Maurer School of Law at Indiana University. He practices in Grand Rapids, MI. Mr. Kline has been assisting the NPA with answers to bankruptcy related questions since June 2009. iSee Stephen Elias, The New Bankruptcy: Will it Work for You?, p. 85, Nolo, 3d Edition, 2009. ii11 U.S.C. 541(b)(8). iii11 U.S.C. 108(b).

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CALENDAR OF EVENTS

04/2013 NPA LEGISLATIVE

10/2013 CALIFORNIA

CONFERENCE

NPA STAFF Dana Meinecke Executive Director dana@NationalPawnbrokers.org Margie Swoyer Director of Membership margie@NationalPawnbrokers.org Lindsay Wilson Director of Meetings and Events lindsay@NationalPawnbrokers.org Chris Pearcey Communications Specialist chris@NationalPawnbrokers.org Matthew Church Government Relations Administrator matthew@NationalPawnbrokers.org Terri Congleton Administrative Assistant terri@NationalPawnbrokers.org Office PO Box 508 Keller, TX 76244 Phone: (817) 337-8830 Fax: (817) 337-8875 NationalPawnbrokers.org 891 Keller Pkwy, Suite 220 Keller, TX 76248

APRIL 16 Hamilton Crowne Plaza Washington, D.C. Contact: Matthew Church matthew@NationalPawnbrokers.org nationalpawnbrokers.org/ government-relations

DIXIE PAWNBROKERS EDUCATIONAL CONFERENCE AND TRADE SHOW

APRIL 19-21 Hilton New Orleans Riverside New Orleans, LA Contact: Rosemary Hipps 256-767-1379 dixieconvention.com

05/2013 MIDWEST PAWNBROKER’S CONFERENCE & CONVENTION

MAY 17-19 Galt House Hotel Louisville, KY Contact: Ron Stempkowski liap@comcast.net midwestpawnconvention.org

PAWNBROKERS ASSOCIATION (CAPA) 57TH ANNUAL CONVENTION & EXHIBITION

OCTOBER 25-27 Marriott Newport Beach Hotel and Spa Contact: Kim Andosca kandosca@caltel.com 209-786-5115 convention.californiapawnbrokers.org

TEXAS ASSOCIATION OF PAWNBROKERS (TAP)

OCTOBER 11-13 Contact: Peggy Roden tap@rmaus.net 972-506-0203 texaspawnbrokers.com

SOUTHEASTERN PAWNBROKERS REGIONAL CONVENTION

OCTOBER 4-6, 2013 Crowne Plaza Resort Asheville Asheville, NC Contact: Tonia Shepherd tonia@alanspawn.com pawnnc.com/The_SE_Regional_ Convention.asp

JKC LAS VEGAS

MAY 30-JUNE 3 Book CityCenter jckonline.com

07/2013 PAWN EXPO 2013

JULY 16-18 The Cosmopolitan of Las Vegas Contact: Lindsay Wilson lindsay@NationalPawnbrokers.org PawnExpo.com

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Index of Advertisers ADVERTISER Aaria

Page 3

248-961-0506 AriaDiamonds.com

ABC Diamond Buyer

8

49

12

Back Cover

888-800-BLUE 2583) Bluestone-Trading.com

Burrell Printing

51

800-531-5234 BurrellPrinting.com

The Buyers

36

562-945-7276 TheBuyers.com

Cash America

57

866-291-8110 pawnshopbuyer.com

CompuPawn

34

866-545-9868 CompuPawn.com

Data Age/PawnMaster

52

888-949-7296 PawnMaster.com/npbm

Dillon Gage

17

888-436-3489 dillongage.com

Garfield Refining

45

800-523-0968 GarfieldRefining.com

Garrett Metal Detectors

37

800-527-4011 Garrett.com

Geib Refining 800-228-4653 GeibRefining.com

Golden Opportunities

Hallmark Research Institute

15

Hi-Tech Precious Metals & Refinery

51

20

29

11

53

55

18

21

Stebgo Metals

7

Stuller

46

The Trendz

5

United Precious Metals

25

US Gold Refinery

56

212-444-4700 USGoldRefineryLLC.com 51

Wexler Insurance Agency

Inside Back Cover

800-432-1853 WexlerInsurance.com 53

800-773-1626 NorthAmericanMetals.com

NTR Metals

Stallcup Group

800-999-3463 UnitedPMR.com

888-657-8665 NationalJewelersSupplies.com

North American Metals

47

866-337-7464 thetrendz.biz

800-551-0083 midstatesrecycling.com

National Jewelers Supplies

Rolland Safe

337-262-7700 stuller.com

212-398-1454 mgsrefining.com/npa

Mid-States Recycling & Refining

45

800-289-0138 stebgo.com

800-476-2715 Livesaysinc.com

Manhattan Gold & Silver

RMF Consulting Group

stallcupgroup.com

800-759-9997 hoverandstrong.com

Livesay’s

Page

800-225-2984 rslc.net

866-950-7528 HiTechPMR.com

Hover & Strong

ADVERTISER 866-204-7209 checkcashingcompliance.com

HallmarkResearch.com

732-696-8556 bluegroundtrading.com

Bluestone Trading

49

888-387-6017 GoldenOppUSA.com

212-391-6637 alexgtoldrefinery.com

Blue Ground Trading

Gemological Institute of America

Page

800-421-7250 gia.edu

586-354-7274 ABCDiamondBuyer.com

Alex Gold & Diamonds

ADVERTISER

White Pine

14

646-758-0292 whitepinediamonds.com 26

800-889-0396 NTRMETALS.com

Padmavati Exports

44

212-869-0544 Padmavatiexportsinc.com

Palak Diam

33

213-228-0077 PalakDiam.com

Rapaport 212-354-9800 rapaportauctions.com

38

The NPA iPhone app is available in the iPhone app store!

The NPA does not specifically endorse any entity and makes no representations, warranties or guarantees, and assumes no responsibility for, the products or services provided by these entities. The NPA expressly disclaims all liability for damages of any kind arising from the use or the performance of the products or services provided by these entities.

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