GOV:U Became Law Without Signature of Governor

BIL:982

RTN:418

ACN:406

TYP:General Bill GB

INB:Senate

IND:19980203

PSP:Giese

SPO:Giese

DDN:dka\4769mm.98

DPB:19980603

GOV:U Became law without signature of Governor

DGA:19980611

SUB:Motor vehicles, leased; rental adjustment clause in lease does not create security interest or sale; Consumer Affairs

HST:982

BodyDateAction DescriptionComLeg Involved

______

------19980630Act No. A406

------19980611Unsigned, became law without

signature of Governor

------19980604Ratified R418

House19980603Read third time, enrolled for

ratification

House19980602Read second time

House19980527Committee report: Favorable26 HLCI

House19980319Introduced, read first time,26 HLCI

referred to Committee

Senate19980318Read third time, sent to House

Senate19980317Read second time

Senate19980305Recalled from Committee,15 ST

placed on the Calendar

Senate19980203Introduced, read first time,15 ST

referred to Committee

TXT:

(A406, R418, S982)

AN ACT TO AMEND ARTICLE 5, CHAPTER 19, TITLE 56, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PROTECTION OF SECURED INTERESTS AND OTHER LIENS ON MOTOR VEHICLES, BY ADDING SECTION 56-19-720 SO AS TO PROVIDE THAT A TERMINAL RENTAL ADJUSTMENT CLAUSE IN A VEHICLE LEASE DOES NOT CREATE A SECURITY INTEREST OR A SALE.

Be it enacted by the General Assembly of the State of South Carolina:

Terminal rental adjustment clause

SECTION1.Article 5, Chapter 19, Title 56 of the 1976 Code is amended by adding:

“Section 56-19-720.Notwithstanding another provision of law, a transaction involving a motor vehicle or trailer does not create a sale or security interest merely because the agreement contains a terminal rental adjustment clause which provides that the rental price may be or must be adjusted either upward or downward by reference to the amount realized upon sale or other disposition of the motor vehicle or trailer.”

Effect on court cases

SECTION2.The clarification of existing law in Section 56-19-720 of the 1976 Code as contained in Section 1 of this act must be given effect in all court cases brought on or after the effective date of this act.

Time effective

SECTION3.This act takes effect upon approval by the Governor.

Became law without the signature of the Governor -- 06/11/98.