First I fabricated a sleeve using .090" thick aluminum to encased a 30 round G.I. magazine. With the curved mag, no way the mag can come out of the sleeve. The bottom of the sleeve is open, so the mag can be serviced. Welded the sleeved magazine to the lower (registered as pistol). Finished the build and returned to HPD where they used white out and retyped the registration. The pistol cannot be resold because I am not licensed to build guns for resale, only personal use.
Curious: was this particular firearm registered before, or after, the ATF 4473 was updated to include receivers as "Other", or were you still required to make sure the LGS categorized it as a Pistol/Handgun specifically?
I have a different theory on the "resale" issue.
According to federal law, you can resell a gun you build at home as long as you intended the firearm to be for personal use at the time you did the build. No manufacturing license is required.
Unless you can find something in the HI statutes that further constrains federal laws and ATF guidance, my guess is HPD typed "(NOT FOR RESALE)" as an indication of your intent -- as in, you were building it for personal use. That doesn't mean you can't resell it -- just HPD needed to document your intentions at the time you registered.
I think this may be another HPD policy "creep" where "Not Intended for Resale" is being misconstrued as "Resale is Prohibited."
That's my interpretation of it, since there are many homemade AR-15 "Franken-guns" being legally sold in this state every year.
I built an AR15 rifle from parts, transferred it to my daughter, and the new registration form showed the specs for the rifle. Between my registration and hers, I never took the completed build in to update their records.
All the receivers I have now have "Receiver Only" on the form, and no caveats about resale.