601 KAR 1:110.

Leasing services.

 

      RELATES TO: KRS

Chapter 281

      STATUTORY AUTHORITY:

KRS 281.600, 281.610

      NECESSITY, FUNCTION,

AND CONFORMITY: KRS 281.600 requires the Transportation Cabinet to establish

reasonable requirements with regard to continuous and adequate service of

transportation. This administrative regulation specifies who may perform

leasing services and under what conditions.

 

      Section 1. In

General. Any authorized carrier may perform its operation with equipment it

does not own, but which is leased in accordance with the requirements of this

administrative regulation. In the case of equipment leased under this

administrative regulation, the certificate of motor vehicle equipment lease

attached as Appendix A shall be executed in addition to the formal written

lease agreement.

 

      Section 2. Lease

Equipment to Certificated Carriers; Intrastate. Equipment must be leased by the

owner thereof to the authorized carrier by a written lease signed by the

parties thereto or their authorized agents. Both parties to the lease agreement

shall sign a certificate of motor vehicle equipment lease on forms prepared and

furnished by the cabinet. A copy of the certificate of motor vehicle equipment

lease shall be carried in the leased equipment at all times while it is being

operated by the lessee. If the lease is for a period of thirty (30) days or

more, an additional copy of the certificate of motor vehicle equipment lease

shall be filed with the cabinet immediately upon consummation of such lease

agreement. The lease must provide for the exclusive possession, control and use

of the least equipment during the period of the lease by the authorized

carrier, and for the complete assumption by the authorized carrier of full

responsibility with respect to the operation of the leased equipment. The

authorized carrier must procure in its name the insurance required by KRS

281.655 providing the required coverage of leased equipment. During the term of

the leasing period, signs must be affixed to both sides of the leased equipment

showing the name of the authorized carrier to whom the equipment is leased. At

the termination of the leasing period, all cab cards issued by the cabinet and

all signs furnished by the carrier must be retained by or returned to the

carrier. The leasing period may be for a time certain or it may be continuous

until cancelled by either party. Any provisions of the written lease agreement

contrary to these administrative regulations shall be null and void and not

binding on either party thereto.

 

      Section 3. Equipment

Leasing; Interstate. The equipment must be leased by the owner thereof to the

authorized carrier by a valid written lease agreement. A copy of the lease must

be carried in the leased equipment at all times while it is being operated by the

lessee. In lieu of the lease, the vehicle may carry a certified statement

containing the terms of the lease, name of the owner, date of the lease, the

period thereof, any restrictions as to the commodities to be carried, and the

location of the premises where the original lease is kept by the authorized

carrier. The lessee must procure the insurance required by KRS 281.655

providing the required coverage of the leased equipment. Leased equipment shall

otherwise be qualified and operated in accordance with the rules and

administrative regulations of the cabinet and the laws of this state.

 

      Section 4. Equipment

Leasing; Private Carriage. No person may lease a motor vehicle owned by him to

any person other than an authorized carrier for the transportation of goods in

intrastate commerce in Kentucky for a period of sixty (60) days or less except

under the authority of a U-drive-it permit. A motor vehicle may be leased to

any person other than an authorized carrier for the transportation of goods in

intrastate commerce in Kentucky for a period of more than sixty (60) days. In

either case, no driver may be furnished by the lessor, nor can the lessor

maintain any control over the operation of the vehicle during the term of the

lease. Any vehicle which has been leased to a person other than an authorized

carrier must have at all times in the cab of such vehicle a copy of the written

lease agreement between the owner of the vehicle and the lessee thereof, and

failure to display a copy of this lease agreement upon demand will constitute a

violation of these rules and administrative regulations. (DMT-20; 1 Ky.R. 793;

eff. 5-14-75; Am. 4 Ky.R. 438; eff. 7-5-78.)

 

APPENDIX

A

CERTIFICATE

OF MOTOR VEHICLE

EQUIPMENT

LEASE

 

      This is to certify

that the following described motor vehicle has been leased by the undersigned

Lessor, the owner thereof, to the undersigned Lessee (one power unit only):



Make





Unit

No.





Year





Serial

No.





REGISTRATION







Plate No.

 





State





 

      We further certify

that the foregoing motor vehicle equipment has been leased in accordance with

and subject to the provisions of the Kentucky Motor Carrier Act, as amended,

and the Rules and Administrative Regulations of the Kentucky Transportation

Cabinet adopted pursuant thereto. Any provision in the Lease Agreement which

may be in conflict with the Rules and Administrative Regulations of the

Kentucky Transportation Cabinet, is hereby amended to comply with such Rules

and Administrative Regulations:

 

      Witness our hands

this _____ day of _______, 19___.

 

_______________________        _________________________

LESSOR                                       LESSEE

 

By ____________________       By

_______________________

            (Name and

Title)                        (Name and Title)

 

_______________________      __________________________

Address                                      Address

 

Witnessed: