In the case of motor vehicles and trailers, notwithstanding any other provision of law, a leasing agreement involving a motor vehicle or trailer shall not create a sales transaction or a security interest in the vehicle merely because the lease contains provisions which provide that the rental price is permitted or required to be adjusted under the agreement either upward or downward based upon an amount which may be realized from a sale or other disposition of the vehicle after the end or termination of the lease period.
Ark. Code Ann. § 4-2A-110
Terminal rental adjustment clauses for vehicle leases — Not sales or security interests
Known as the Uniform Commercial Code
The act spans §§ 4–4 (597 sections).
Applied in 1 court decision — leading case In Re Double G Trucking of the Arklatex, Inc. (2010)
Most recently applied in In Re Double G Trucking of the Arklatex, Inc. (April 2010)
Acts 1997, No. 370, § 1.
Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.