§ 102551 Equipment Trust Financing

Public Utilities Code·California

AI SummaryVerified

This law lets a buyer tell the seller to give the equipment to a bank or trust first, and then the buyer can sign a purchase or lease for that equipment at the same time.

Key Takeaways

•A purchase or lease contract can require the seller to transfer equipment to a bank or trust first.
•The bank or trust holds the equipment for the benefit of equipment trust certificates.
•The buyer (like a school district) can sign a purchase or lease agreement for the equipment at the same time it’s delivered.

Example

A school district wants new school buses. The contract says the bus maker must send the buses to a bank that holds them for a trust, and the district can sign a lease for the buses right then.

The bus maker follows the contract, gives the buses to the bank acting as trustee, the bank hands the buses to the district, and the district signs a lease to use the buses, all in one go.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 102551 Equipment Trust Financing

The agreement to purchase or lease may direct the vendor or lessor to sell and assign or lease the rolling equipment to a bank or trust company duly authorized to transact business in the State of California as trustee, for the benefit and security of the equipment trust certificates and may direct such trustee to deliver the rolling equipment to one or more designated officers of the district and may authorize the district to simultaneously therewith execute and deliver an installment purchase agreement or a lease of the equipment to the district. (Added by Stats. 1971, Ch. 1374.)

Last verified: January 11, 2026

Key Terms

rolling equipment equipment trust certificates installment purchase agreement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 102551.

§ 102551 Equipment Trust Financing

Public Utilities Code·California

AI SummaryVerified

§ 102551 Equipment Trust Financing

This law lets a buyer tell the seller to give the equipment to a bank or trust first, and then the buyer can sign a purchase or lease for that equipment at the same time.

Key Takeaways

•A purchase or lease contract can require the seller to transfer equipment to a bank or trust first.
•The bank or trust holds the equipment for the benefit of equipment trust certificates.
•The buyer (like a school district) can sign a purchase or lease agreement for the equipment at the same time it’s delivered.

Example

A school district wants new school buses. The contract says the bus maker must send the buses to a bank that holds them for a trust, and the district can sign a lease for the buses right then.

The bus maker follows the contract, gives the buses to the bank acting as trustee, the bank hands the buses to the district, and the district signs a lease to use the buses, all in one go.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 102551 Equipment Trust Financing

Last verified: January 11, 2026

Key Terms

rolling equipment equipment trust certificates installment purchase agreement

References

Official text at leginfo.legislature.ca.gov
California Legislature. Public Utilities Code. Section 102551.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References