The Legal and Regulatory Environment
United States Auto & Asset Finance Country Survey 2017
In the United States Auto & Asset Finance Country Survey 2017, produced by Asset Finance International in association with the White Clarke Group, Blank Rome Partner Stephen Whelan assesses recent developments in the U.S. equipment and auto finance market.
There have been several interesting developments in equipment and auto finance from various courtrooms. This article will discuss some noteworthy decisions.
TRAC auto leases
Commercial vehicle lessors received a rude surprise in re: Lightning Bolt Leasing, a federal court decision in Florida ignoring the existence of the Florida statute which declares that the mere presence of a TRAC (terminal rent adjustment clause) provision in a lease does not destroy true lease treatment.
The court sided with the bankrupt lessee, which argued that the TRAC provision gave it the upside and downside potential at expiration of the lease term. This decision runs counter to the weight of authority in many states, following enactment of TRAC statutes, but nevertheless sounds a cautionary note for vehicle lessors in the State of Florida.
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