Current Status Bill Number:982 Ratification Number:418 Act Number:406 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19980203 Primary Sponsor:Giese All Sponsors:Giese Drafted Document Number:dka\4769mm.98 Date Bill Passed both Bodies:19980603 Governor's Action:U Became law without signature of Governor Date of Governor's Action:19980611 Subject:Motor vehicles, leased; rental adjustment clause in lease does not create security interest or sale; Consumer Affairs
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ ------ 19980630 Act No. A406 ------ 19980611 Unsigned, became law without signature of Governor ------ 19980604 Ratified R418 House 19980603 Read third time, enrolled for ratification House 19980602 Read second time House 19980527 Committee report: Favorable 26 HLCI House 19980319 Introduced, read first time, 26 HLCI referred to Committee Senate 19980318 Read third time, sent to House Senate 19980317 Read second time Senate 19980305 Recalled from Committee, 15 ST placed on the Calendar Senate 19980203 Introduced, read first time, 15 ST referred to CommitteeView additional legislative information at the LPITS web site.
(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
SECTION 1. 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
SECTION 2. 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
SECTION 3. This act takes effect upon approval by the Governor.
Became law without the signature of the Governor -- 06/11/98.