A certain officer in Milford "explained" to me the limit was 4 per year period. He was quite intense about the explanation. He seemed to really want to get his point across. (customer service window, not an "official" encounter).
I thanked him, mentioned that the limit applied only to sales and departed. He seemed about to press his point but left it alone. Perhaps he had a glimmer of recollection.
In other words, Police do not necessarily know the correct info on transfers. (which is not to say they DON'T, either)