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Old October 17, 2009, 12:13 PM   #29
Skans
Senior Member
 
Join Date: November 20, 2008
Posts: 11,132
Quote:
Skans, explain the outcome here.

Guy comes in and pays cash for a machine gun from me. I file the papers. Lock the shop, go home. Someone breaks in, steals the machine gun.

Do I file a theft/loss report with the ATF? Why or why not?
As I understand it, the BATFE Form 4 registers the NFA firearm to a particular entity or individual. That person is permitted to possess the NFA weapon and is responsible for complying with NFA regulations in that regard. It is not the same thing as a title to a vehicle. The Form 4 merely says, that as far as BATFE is concerned they will look to you as the owner of that gun. Notice that on the Form 4 the Transferor is refered to as the "registered owner of the firearm"....not the legal owner. I believe it is possible to have a different legal owner than the registered owner....and in fact this does take place when someone pays full price for the gun, no refunds, but the transfer remains pending for 4 months. During that time, you have a legal owner and a registered owner and they are not one and the same.

Legal ownership would still be determined by state law and the law of contracts as interpreted in your particular state.

In your scenario, I would say that the guy who purchased the machine gun had his gun stolen while it was in your custody and control. However, as far as BATFE is concerned, until the transfer is complete, you are responsible for reporting the theft to BATFE.
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