HOUSE BILL No. 2687*
An Act concerning vehicles; relating to terminal rent adjustment clauses.
Be it enacted by the Legislature of the State of Kansas:

Section 1. (a) Notwithstanding any other provision of law, an agree-
ment involving the leasing of a motor vehicle or trailer does not create a
sale or security interest solely because the agreement provides for an
increase or decrease adjustment in the rental price of the motor vehicle
or trailer based upon the amount realized upon sale or other disposition
of the motor vehicle or trailer following the termination of the lease.

(b) This section clarifies existing law and shall be given effect in all
court cases brought on or after the effective date of this act.

(c) This section shall be part of and supplemental to the uniform
commercial code-leases.

Sec. 2. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved March 27, 1998

Published in the Kansas Registers April 9, 1998