Definition of Equipment Trust
Financing device commonly used by railroads by which equipment is purchased from the manufacturer by a trustee who provides a substantial portion of the purchase price, the railroad providing the balance. The trustee then leases the equipment to the railroad which pays a rental fee consisting of interest, amortization for serial retirement and trustee’s fee.
That's the definition of Equipment Trust in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.
