Bill 982

                    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 Committee

(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.