Utah Code 41-1a-609. Terminal rental adjustment clauses
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(1) As used in this section, “terminal rental adjustment clause” means a provision of an agreement that permits or requires the rental price to be adjusted upward or downward by reference to the amount realized by the lessor under the agreement upon sale or other disposition of the property.
Terms Used In Utah Code 41-1a-609
- 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
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Security interest: means an interest that is reserved or created by a security agreement to secure the payment or performance of an obligation and that is valid against third parties. See Utah Code 41-1a-102
- Trailer: means a vehicle without motive power designed for carrying persons or property and for being drawn by a motor vehicle and constructed so that no part of its weight rests upon the towing vehicle. See Utah Code 41-1a-102
- Vehicle: includes a motor vehicle, trailer, semitrailer, off-highway vehicle, camper, park model recreational vehicle, manufactured home, and mobile home. See Utah Code 41-1a-102
(2) Notwithstanding any other provision of law, a motor vehicle or trailer lease agreement that is subject to a terminal rental adjustment clause does not create a sale or security interest.
(3) The provisions of this section do not affect:
(3)(a) the rights and obligations of a valid security interest under this chapter; or
(3)(b) the calculation of sales and use tax payable under Title 59, Chapter 12, Sales and Use Tax Act .