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Substitute Senate Bill No. 420

PUBLIC ACT NO. 96-162

AN ACT CONCERNING MOTOR VEHICLE LEASES WITH TERMINAL RENTAL ADJUSTMENT CLAUSES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) Notwithstanding any provision of the general statutes, in the case of motor vehicles or trailers, a transaction does not create a sale or security interest merely because it provides that the rental price is permitted or required to be adjusted under the agreement either upward or downward by reference to the amount realized upon sale or other disposition of the motor vehicle or trailer.

Sec. 2. Section 14-165 of the general statutes is repealed and the following is substituted in lieu thereof:

Except when the context otherwise requires, as used in this chapter AND SECTION 1 OF THIS ACT:

(a) "Dealer" means a person engaged in the business of buying, selling or exchanging vehicles who is licensed under the provisions of chapter 246.

(b) "Commissioner" means the Commissioner of Motor Vehicles.

(c) "Identification number" means the numbers and letters, if any, on a vehicle designated by the commissioner for the purpose of identifying the vehicle.

(d) "Implement of husbandry" means a vehicle registered as a farm vehicle or a vehicle designated and adapted exclusively for agricultural, horticultural or livestock raising operations or for lifting or carrying an implement of husbandry.

(e) "Lienholder" means a person holding a security interest in a vehicle.

(f) "Owner" means a person, other than a lienholder, having the property in or title to a vehicle. The term includes a person entitled to the use and possession of a vehicle subject to a security interest in another person, but excludes a lessee under a lease not intended as security.

(g) "Security agreement" means a "security agreement" as defined in section 42a-9-105(1)(l).

(h) "Security interest" means a "security interest" as defined in section 42a-1-201(37).

(i) "Special mobile equipment" means a vehicle not designed for the transportation of persons or property upon a highway and only incidentally operated or moved over a highway, including but not limited to, ditch-digging apparatus, well-boring apparatus and road construction and maintenance machinery such as asphalt spreaders, bituminous mixers, bucket loaders, street sweepers, tractors other than truck tractors, ditchers, leveling graders, finishing machines, motor graders, road rollers, scarifiers, earth moving carry-alls and scrapers, power shovels and drag lines, and self-propelled cranes and earth moving equipment. The term does not include house trailers, dump trucks, truck-mounted transit mixers, cranes or shovels, or other vehicles designed for the transportation of persons or property to which machinery has been attached.

(j) "State" means a state, territory or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico or a province of the Dominion of Canada.

(k) "Vehicle" means a motor vehicle as defined by section 14-1.

(l) "Manufacturer's or importer's certificate of origin" means the original written instrument or document required to be executed and delivered by the manufacturer to his agent or dealer, or a person purchasing direct from the manufacturer, certifying the origin of the vehicle.

Approved May 31, 1996. Effective October 1, 1996.

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