§ 120651 Equipment Trust Financing

• •This law lets a buyer or renter tell the seller to sell or lease big equipment (like trains) to a bank or trust company.
• •The bank holds the equipment to make sure the people who bought certificates (like special papers showing they own part of the equipment) are protected.
• •The bank can give the equipment to certain people in charge, and those people can then make a deal to buy or rent the equipment back.

A train company wants to buy new train cars but doesn’t have all the money upfront.

The train company can make a deal where a bank buys the train cars first. The bank holds onto them to protect the people who helped pay for them. Then, the train company can rent or slowly buy the train cars back from the bank.