News & Events

News & Events

5.15.2014

Lindquist Mentioned in ELFA State Legislature Report for Work to Reenact Terminal Rental Adjustment Clause Law

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Lane Powell Shareholder Malcolm Lindquist was mentioned in the April 28 Equipment Leasing and Finance Association (ELFA) State Legislature Report for his efforts to reenact the Terminal Rental Adjustment Clause (TRAC) law. ELFA, the Automotive Leasing Association and others have supported efforts to reenact the law that safeguards TRAC vehicle leases in Washington state. Lindquist is working with state legislature to place the law into UCC 1-203, where under one circumstance it will fit under “true lease” status if: “The amount of rental payments may or will be increased or decreased by reference to the amount realized by the lessor upon sale or disposition of the goods.” This is slightly different from the model TRAC law (in state certificate of title laws) worked out with the Commissioners on Uniform State Laws, but the approach works and has gained industry support in the state. View the full ELFA report.