Article 3. Equipment Trust Certificates of California Public Utilities Code >> Division 10. >> Part 16. >> Chapter 6. >> Article 3.
The district shall have power to purchase rail transit
equipment such as cars or rolling equipment; and may execute
agreements, leases, and equipment trust certificates in the forms
customarily used by private corporations engaged in the rail transit
business appropriate to effect purchase and leasing of rail transit
equipment and may dispose of the equipment trust certificates upon
the terms and conditions the board deems appropriate. Payment for the
equipment, or rentals therefor, may be made in installments, and the
deferred installments may be evidenced by equipment trust
certificates payable from any source or sources of funds specified in
the certificates that are or will be legally available to the
district. Title to the equipment shall not rest in the district until
the equipment trust certificates are paid.
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 as
trustee, for the benefit and security of the equipment trust
certificates and may direct the trustee to deliver the rolling
equipment to one or more designated officers of the district and may
authorize the district to execute and deliver simultaneously
therewith an installment purchase agreement or a lease of the
equipment to the district.
The agreements and leases shall be duly acknowledged before
a person authorized by law to take acknowledgments of deeds and in
the form required for acknowledgment of deeds. The agreements,
leases, and equipment trust certificates shall be authorized by
resolution of the district and shall contain the covenants,
conditions, and provisions deemed necessary or appropriate to insure
the payment of the equipment trust certificates from legally
available sources of funds specified in the certificates.
The covenants, conditions, and provisions of the
agreements, leases, and equipment trust certificates shall not
conflict with any of the provisions of any trust agreement securing
the payment of bonds, notes, or certificates of the district.