S.B. 206 Enrolled

VEHICLE SALE AND SECURITY INTEREST
AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: David H. Steele
This act modifies the Motor Vehicles Code by defining terminal rental adjustment clause
and providing that a motor vehicle or trailer lease agreement that is subject to a terminal
rental adjustment clause does not create a sale or security interest.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
41-1a-609, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 41-1a-609 is enacted to read:
41-1a-609. Terminal rental adjustment clauses.
(1) As used in this section, "terminal rental adjustment clause" means a provision of an
agreement that permits or requires the rental price to be adjusted upward or downward by
reference to the amount realized by the lessor under the agreement upon sale or other
disposition of the property.
(2) Notwithstanding any other provision of law, a motor vehicle or trailer lease
agreement that is subject to a terminal rental adjustment clause does not create a sale or
security interest.
(3) The provisions of this section do not affect:
(a) the rights and obligations of a valid security interest under this chapter; or
(b) the calculation of sales and use tax payable under Title 59, Chapter 12, Sales and
Use Tax Act.