News & Events

News & Events

3.24.2015

Lindquist Testifies in Support of Terminal Rental Adjustment Clause Amendment

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Lane Powell Shareholder Malcolm Lindquist, in his capacity as co-chair of the Uniform Commercial Code (UCC) Committee of the Business Law Section of the Washington State Bar Association, recently testified before both House and Senate committees in support of an amendment to Washington’s UCC that restores a safe harbor for leases containing a Terminal Rental Adjustment Clause (TRAC). The UCC currently distinguishes leases from secured transactions based on terms contained in the parties’ agreement. A TRAC lease allows rental payments to change based on the sale amount when the lessor sells the leased equipment.