Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Equipment Trust Certificate Introduction
1. EQUIPMENT TRUST
CERTIFICATE
Debt Instrument that allows a company to take
possession of enjoy the use of an asset while
paying for it overtime.
Originally used for Railway cars.
Currently used for aircrafts &
Shipping Containers.
PossibleOutcomes
If payments are
maintained and debt is
paid off, the title is
transferred.
If default happens, the
lender has the right to
repossess the asset
Benefits
• Secured Debt Financing
• No Property Tax
• Protection to the trust and investors