Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                        CHAPTER 174-H.F.No. 1447 
           An act relating to motor vehicles; defining the effect 
          of certain leases; amending Minnesota Statutes 1988, 
          section 168A.17, by adding a subdivision. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 168A.17, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [LEASES THAT ARE NOT SALES OR SECURITY 
INTERESTS.] Notwithstanding any other provision of sections 
168A.01 to 168A.31 or other law, in the case of a lease 
agreement with respect to a vehicle other than a vehicle used 
primarily for personal, family, or household purposes, the 
determination whether the lease agreement constitutes a lease 
and does not create a conditional sale or security interest 
shall be governed by the stated intent of the parties set forth 
in the lease agreement, unless it can be shown by a 
preponderance of the evidence that the terms of the lease 
agreement cannot be reconciled with the stated intent.  In no 
event shall the lease agreement be deemed to create a 
conditional sale or security interest merely because it permits 
or requires the amount of rental payments to be adjusted upward 
or downward by reference to the amount realized by the lessor 
upon sale or disposition of the vehicle. 
    Presented to the governor May 16, 1989 
    Signed by the governor May 17, 1989, 6:33 p.m.