Prohibited practices

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  1. (a) A person engages in an act of unlawful subleasing or transfer of a motor vehicle if all of the following conditions are met:

    1. (1) The vehicle is subject to a lease contract, an installment sales agreement, or a security agreement, the terms of which prohibit the transfer or assignment of any right or interest in the vehicle or under the lease contract, installment sales agreement, or security agreement without consent of the lessor, seller, or secured party;

    2. (2) The person is not a party to the lease contract, installment sales agreement, or security agreement;

    3. (3) The person transfers or assigns, or purports to transfer or assign, a right or an interest in the vehicle to a person who is not a party to the lease contract, installment sales agreement, or security agreement;

    4. (4) The person does not obtain, before the transfer or assignment described in subdivision (a)(3) of this section, written consent to the transfer or assignment from the vehicle's lessor, seller, or secured party; and

    5. (5) The person receives compensation or some other consideration for the transfer or assignment described in subdivision (a)(3) of this section.

  2. (b) A person engages in an act of unlawful subleasing or transfer of a motor vehicle when the person is not a party to the lease contract, installment sales agreement, or security agreement and assists, causes, or arranges an actual or purported transfer or assignment described as a violation of this subchapter.

  3. (c) It is not a defense to prosecution under this subchapter that the motor vehicle's owner has violated a contract creating a security interest, lease, or lien in the motor vehicle.


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