601 KAR 1:110. Leasing services

      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:

Notation

      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.