Well, the LTC holder/FFL is fine. the unlawful possessor is another ballgame.... but in practice, the machine isn't usually going to chase someone who "tried to do the right thing". But that doesn't mean anything legally.
Right, but if the unlawful possessor doesn't actually possess anything (having handed it to the LTC/FFL holder), what's the charge?
If the cops claim they saw an unlicensed person holding a gun and charge, gun buybacks are dead. And, given that it's legal for an unlicensed person to hold a gun if under the supervision of a licensed person, (like a gun range) then... how far back in time are they going to go to make the charge stick? "you must have driven here with it!" Unless they actually see the person driving with it, how would they prove it?