CHAPTER 433

FORMERLY

SENATE BILL NO. 287

AN ACT TO AMEND TITLE 21 OF THE DELAWARE CODE RELATING TO TERMINAL RENTAL ADJUSTMENT CLAUSE LEASES.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1 . Amend Title 21 of the Delaware Code by adding a new section 2342 to read as follows:

"§2342. Terminal Rental Adjustment Clauses

In the case of motor vehicles or trailers, notwithstanding any other provision of law, 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."

Approved July 3, 1996