SECTIONS 570-574 - California Statutes

PENAL CODE

SECTION 570-574

570. An act of unlawful subleasing of a motor vehicle, as defined
in Section 571, shall be punishable by imprisonment in the state
prison or in the county jail for not more than one year, or by a fine
of not more than ten thousand dollars ($10,000), or by both that
fine and imprisonment.

571. (a) A person engages in an act of unlawful subleasing of a
motor vehicle if all of the following conditions are met:
(1) The motor vehicle is subject to a lease contract, conditional
sale contract, or security agreement the terms of which prohibit the
transfer or assignment of any right or interest in the motor vehicle
or under the lease contract, conditional sale contract, or security
agreement.
(2) The person is not a party to the lease contract, conditional
sale contract, or security agreement.
(3) The person transfers or assigns, or purports to transfer or
assign, any right or interest in the motor vehicle or under the lease
contract, conditional sale contract, or security agreement, to any
person who is not a party to the lease contract, conditional sale
contract, or security agreement.
(4) The person does not obtain, prior to the transfer or
assignment described in paragraph (3), written consent to the
transfer or assignment from the motor vehicle's lessor, seller, or
secured party.
(5) The person receives compensation or some other consideration
for the transfer or assignment described in paragraph (3).
(b) A person engages in an act of unlawful subleasing of a motor
vehicle when the person is not a party to the lease contract,
conditional sale contract, or security agreement, and assists,
causes, or arranges an actual or purported transfer or assignment, as
described in subdivision (a).

572. (a) The actual or purported transfer or assignment, or the
assisting, causing, or arranging of an actual or purported transfer
or assignment, of any right or interest in a motor vehicle or under a
lease contract, conditional sale contract, or security agreement, by
an individual who is a party to the lease contract, conditional sale
contract, or security agreement is not an act of unlawful subleasing
of a motor vehicle and is not subject to prosecution.
(b) This chapter shall not affect the enforceability of any
provision of any lease contract, conditional sale contract, security
agreement, or direct loan agreement by any party thereto.

573. (a) The penalties under this chapter are in addition to any
other remedies or penalties provided by law for the conduct
proscribed by this chapter.
(b) If any provision of this chapter or the application thereof to
any person or circumstance is held to be unconstitutional, the
remainder of the chapter and the application of its provisions to
other persons and circumstances shall not be affected thereby.

574. As used in this chapter, the following terms have the
following meanings:
(a) "Buyer" has the meaning set forth in subdivision (c) of
Section 2981 of the Civil Code.
(b) "Conditional sale contract" has the meaning set forth in
subdivision (a) of Section 2981 of the Civil Code. Notwithstanding
subdivision (k) of Section 2981 of the Civil Code, "conditional sale
contract" includes any contract for the sale or bailment of a motor
vehicle between a buyer and a seller primarily for business or
commercial purposes.
(c) "Direct loan agreement" means an agreement between a lender
and a purchaser whereby the lender has advanced funds pursuant to a
loan secured by the motor vehicle which the purchaser has purchased.
(d) "Lease contract" means a lease contract between a lessor and
lessee as this term and these parties are defined in Section 2985.7
of the Civil Code. Notwithstanding subdivision (d) of Section 2985.7
of the Civil Code, "lease contract" includes a lease for business or
commercial purposes.
(e) "Motor vehicle" means any vehicle required to be registered
under the Vehicle Code.
(f) "Person" means an individual, company, firm, association,
partnership, trust, corporation, limited liability company, or other
legal entity.
(g) "Purchaser" has the meaning set forth in paragraph (30) of
subdivision (b) of Section 1201 of the Commercial Code.
(h) "Security agreement" and "secured party" have the meanings set
forth, respectively, in paragraphs (73) and (72) of subdivision (a)
of Section 9102 of the Commercial Code. "Security interest" has the
meaning set forth in paragraph (35) of subdivision (b) of Section
1201 of the Commercial Code.
(i) "Seller" has the meaning set forth in subdivision (b) of
Section 2981 of the Civil Code, and includes the present holder of
the conditional sale contract.