§ 30941 Equipment Trust Financing

• •This law lets a buyer or renter tell the seller to transfer the rolling equipment (like trains or buses) to a bank or trust company.
• •The bank or trust company holds the equipment as security for special certificates (like a promise of payment).
• •The equipment can be given to certain officers of a district (like a school or city district).
• •The district can then agree to buy or rent the equipment in small payments over time.

A school district wants to buy new buses but doesn’t have all the money upfront.

The district can make a deal where the seller gives the buses to a bank, and the bank holds them as security. The district gets the buses right away and pays for them little by little, like a loan.