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HOUSE BILL NO. 137

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Daily Data Tracking History

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H0137............................................by TRANSPORTATION AND DEFENSE
MOTOR VEHICLES - Adds to existing law to provide that a transaction involving
a motor vehicle or trailer does not create a sale or security interest merely
because the transaction includes a terminal rental adjustment clause (TRAC).
                                                                        
01/31    House intro - 1st rdg - to printing
02/03    Rpt prt - to Transp

Bill Text

                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 137
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MOTOR VEHICLE TITLES; AMENDING CHAPTER 5, TITLE 49, IDAHO CODE, BY
  3        THE ADDITION OF A NEW SECTION 49-512A,  IDAHO  CODE,  TO  PROVIDE  THAT  A
  4        TRANSACTION INVOLVING A MOTOR VEHICLE OR TRAILER DOES NOT CREATE A SALE OR
  5        SECURITY  INTEREST  MERELY  BECAUSE  THE  TRANSACTION  INCLUDES A TERMINAL
  6        RENTAL ADJUSTMENT CLAUSE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Chapter 5, Title 49, Idaho Code,  be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 49-512A, Idaho Code, and to read as follows:
                                                                        
 11        49-512A.  EFFECT OF A TERMINAL RENTAL ADJUSTMENT  CLAUSE.  Notwithstanding
 12    any  provision of law to the contrary, a transaction involving a motor vehicle
 13    or trailer does not create a sale or  security  interest  merely  because  the
 14    transaction  provides  that  the  rental  price is permitted or required to be
 15    adjusted under the agreement either upward or downward  by  reference  to  the
 16    amount  realized  upon  the  sale or other disposition of the motor vehicle or
 17    trailer.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS 12577



This bill protects fleet leasing companies from bankruptcy
proceedings of the lessor by the addition of this Terminal Rental
Adjustment Clause.
                          FISCAL IMPACT

No fiscal impact to the state.


Contact
Name: Rep. Wood 
Phone: 332-1212




STATEMENT OF PURPOSE/FISCAL NOTE                     H 137