§ 25846 Equipment Trust Financing

• •This law lets a buyer or renter tell the seller to sell or lease big equipment (like trains or buses) to a bank or trust company.
• •The bank holds the equipment as security for special certificates (like a promise of payment).
• •The equipment can be given to a specific person in charge, and the buyer can sign a payment plan or lease at the same time.

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

The city can tell the bus seller to sell the buses to a bank. The bank holds the buses as security while the city pays over time. The city gets the buses right away and signs a payment plan with the bank.