What happens if the class 3 dealer goes out of business
I have been shooting for about 25 years. At one time I had a collection that totaled about 200 guns. I eventually sold everything for personal reasons.
I'm back and I am looking to rebuild my collection. I now live in Texas, which allows machine guns and silencers (I hate the term 'suppressor'), so I've started rebuilding my collection.
I am currently waiting on a number of silencers, an MP5a3, an M16a1 (complete, not ar15), and m16a2.
My question is...what happens if the class III dealer closes his doors, goes out of business?
Technically, the NFA items haven't been transferred, so I don't own the items, the dealer owns them, and is waiting for BATFE approval to transfer them to me.
Granted, I've already paid the two different dealers, but if they go out of business, since they own the guns until the transfer, I am just another creditor of the dealer. I basically have to sue the dealer for return of my money of the items.
Does anyone know of a class III dealer that went out of business? What happened to the NFA items that were waiting for approval?
How about a bankruptcy? Does the trustee take the NFA items? A friend of mine is a bankruptcy lawyer, and he says that the bankruptcy trustee would just take the assets, and I become a general creditor, and I have to get in line behind other creditors. His reasoning is that I don't own the NFA items while I am waiting approval, but rather I have a contract with the dealer that he will transfer the guns/silencers once BATFE issues the stamp. Bankruptcy of the class III dealer would void the contract, and I become a general creditor, no different from any other creditor, who the dealer may owe money to, such as the bank, utility company, unsecured suppliers, etc.
I asked about perfecting a security interest with the NFA items, so that I don't have to share the NFA items with other creditors. He said that you can't do that because I don't currently own the NFA items, and I can't create a security interest in collateral that I do not own.