Indiana Code 24-5-16-12. Unlawful subleasing; conditions
(1) The vehicle is subject to a lease contract, an installment sales agreement, or a security agreement, the terms of which prohibit the transfer or assignment of any right or interest in the vehicle or under the lease contract, installment sales agreement, or security agreement without consent of the lessor, seller, or secured party.
Terms Used In Indiana Code 24-5-16-12
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- lease contract: means a lease contract for or in contemplation of a lease for the use of a vehicle, and the purchase of services incidental to the lease, by an individual for a term exceeding four (4) months primarily for personal, family, household, business, commercial, or agricultural use. See Indiana Code 24-5-16-4
- person: means an individual, a company, a firm, an association, a partnership, a trust, a corporation, or other legal entity. See Indiana Code 24-5-16-5
- secured party: has the meaning set forth in Indiana Code 24-5-16-7
- security agreement: has the meaning set forth in Indiana Code 24-5-16-8
- seller: has the meaning set forth in IC 26-1-2-103(1)(d). See Indiana Code 24-5-16-10
- vehicle: has the meaning set forth in IC 24-4-9-8. See Indiana Code 24-5-16-11
(3) The person transfers or assigns, or purports to transfer or assign, a right or an interest in the vehicle under the lease contract, installment sales agreement, or security agreement to a person who is not a party to the lease contract, installment sales agreement, or security agreement.
(4) The person does not obtain, before the transfer or assignment described in subdivision (3), written consent to the transfer or assignment from the vehicle’s lessor, seller, or secured party.
(5) The person receives compensation or some other consideration for the transfer or assignment described in subdivision (3).
(b) A person engages in an act of unlawful subleasing of a vehicle when the person is not a party to the lease contract, installment sales agreement, or security agreement and assists, causes, or arranges an actual or purported transfer or assignment described in subsection (a)(3).
As added by P.L.80-1990, SEC.16.