SECTIONS 30940-30943 - California Statutes

PUBLIC UTILITIES CODE

SECTION 30940-30943

30940. The district shall have power to purchase equipment such as
cars, trolley buses and motorbuses, rolling equipment, and may
execute agreements, leases and equipment trust certificates in the
forms customarily used by private corporations engaged in the rapid
transit business appropriate to effect such purchase and leasing of
rolling equipment and may dispose of such equipment trust
certificates upon such terms and conditions as the board may deem
appropriate. All money required to be paid by the district under the
provisions of such agreements, leases and equipment trust
certificates shall be payable solely from the revenue or income to be
derived from the transportation system and from grants or loans, or
both, as provided in Sections 30701, 30702, and 30703 of this part.
Payment for such equipment, or rentals therefor, may be made in
installments, and the deferred installments may be evidenced by
equipment trust certificates payable solely from such revenue,
income, grants, or loans, and title to such equipment shall not vest
in the district until the equipment trust certificates are paid.

30941. 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, lessor or vendor 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.

30942. The agreements and leases shall be duly acknowledged before
some person authorized by law to take acknowledgments of deeds and in
the form required for acknowledgment of deeds and such agreements,
leases, and equipment trust certificates shall be authorized by
resolution of the district and shall contain such covenants,
conditions and provisions which may be deemed necessary or
appropriate to insure the payment of the equipment trust certificates
from such revenue, income, grants or loans.

30943. The covenants, conditions and provisions of the agreements,
leases, and equipment trust certificates shall not conflict with any
of the provisions of any agreement securing the payment of bonds,
notes or certificates of the district.