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No new machinegun registrations to individuals were accepted after 1986. So an individual can't convert or have converted a semi-auto to full auto legally, as it can't be registered. And it is not legal unless registered. Period.
You can get a NFA manufacturers license ($1000). If you do, you can manufacture machineguns for sale to police or military. You don't need a specific letter from the police requesting that you do so. You also are scrutinized pretty carefully by BATF to be sure you have at least the capability to manufacture. Actually, this is a CYA for them so they can't be accused of giving licenses to hobbyists.
BUT, if you go out of business, you can't keep any machineguns you make under the license. You must either sell them to police/military, sell them to an NFA manufacturer or dealer, or forfeit them.
Same reason. To keep them, you would have to have them transferred from your business to yourself, and that now can't be done.
Jim
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