1. The Laws of New York
  2. Consolidated Laws
  3. Vehicle & Traffic
  4. Title 3: Safety Responsibility; Financial Security; Equipment; Inspection; Size and Weight; and Other Provisions
  5. Article 12: Other Provisions


Section 397-B Vehicle leases that are not sales or security interests

Vehicle & Traffic (VAT)

Notwithstanding any other provision of law, in the case of motor vehicles or trailers which are not vehicles or trailers leased or used primarily for personal, family, or household purposes, a transaction does not create a conditional 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.