§ 100461 Equipment Trust Agreements

• •The buyer can require the seller to give the equipment to a bank or trust.
• •The bank or trust holds the equipment for the benefit of the equipment trust certificates (investors).
• •The trustee can deliver the equipment to VTA officers, and VTA can sign the purchase or lease at the same time.

VTA wants new train cars and makes a deal that says the seller must hand the cars over to a bank trust, which holds them for people who bought certificates, and then the bank gives the cars to VTA officers while VTA signs the lease.

The seller sends the train cars to the bank trust, the trust keeps them safe for the investors, and at the same moment VTA signs the lease and takes the cars.