SECTIONS 120650-120654 - California Statutes

PUBLIC UTILITIES CODE

SECTION 120650-120654

120650. The board may purchase transit equipment such as cars,
trolley buses, motorbuses, light rail vehicles, or rolling equipment,
and may execute agreements, leases, and equipment trust certificates
in the forms customarily used by private corporations engaged in the
transit business appropriate to effect the purchase and leasing of
transit equipment, and may dispose of the equipment trust
certificates upon the terms and conditions that the board may deem
appropriate.
Payment for transit equipment, or rentals therefor, may be made in
installments, and the deferred installments may be evidenced by
equipment trust certificates that are or will be legally available to
the board. Title to the equipment shall not vest in the board until
the equipment trust certificates are paid.

120651. 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 board and may
authorize the board to simultaneously therewith execute and deliver
an installment purchase agreement or a lease of the equipment to the
board.

120652. 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 board and shall contain covenants,
conditions, and provisions which may be deemed necessary or
appropriate to insure the payment of the equipment trust certificates
from legally available source or sources of funds specified in the
certificates.

120653. 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 board.

120654. An executed copy of each agreement and lease shall be filed
in the office of the Secretary of State, who shall be entitled to
receive one dollar ($1) for each copy filed.
The filing constitutes notice to any subsequent judgment creditor
or any subsequent purchaser.