### Question
What does terminal rental adjustment clause mean?


### Answer
**Terminal rental adjustment clause** has the following meaning in *26 U.S.C. § 7701*:

> a provision of an agreement which permits or requires the rental price to be adjusted upward or downward by reference to the amount realized by the lessor under the agreement upon sale or other disposition of such property

#### Citation:
  - *26 U.S.C. § 7701*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 79-DEFINITIONS**

