this rifle was still acquired as a C&R and his license was still used to purchase it. not having that in his bound book sounds more like a violation than not and technically all weapons purchased with a C&R is a deposition to yourself and is to be used for your personal collection...
I do not own a C&R so I don't know how it works but it seems like even that, which was barely even alluded to in your first post, would be a gray area that needs to be answered and put to rest by 'the men in black suits in the black suvs'.
ignore my complete lack of capitalization. I still have no problem correcting your grammar.
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