ALEXANDRIA, VA – An amendment sponsored by the Truck Renting and Leasing Association (TRALA), allowing motor vehicle lease and rental contracts to continue to include indemnification clauses, was approved Feb. 12, 2007, by the New Mexico Senate Judiciary Committee. As originally introduced Jan. 18, by Sen. Pete Campos, SB 69 would have prohibited any lease or rental contract from including certain broad form indemnification clauses commonly used by motor vehicle renting and leasing companies. In a unanimous 10-0 vote, the committee agreed to replace the original text of SB 69 with a substitute bill that exempts motor vehicle lease and rental contracts from the restrictions proposed in the legislation. The substitute bill also contains an amendment to exempt finance lease contracts from the restrictions on indemnification clauses. The passage of exemption amendments specific to motor vehicle and finance lease contracts would prevent the forced renegotiation of existing long-term lease contracts and rates. These amendments would also allow the continuation of existing practices used to provide motor vehicle lessees with increased flexibility in negotiating lease terms. The amended version of SB 69 will now move to the Senate Floor for a vote. Afterwards it will be considered in the House of Representatives.

Originally posted on Fleet Financials