What is the meaning of Equipment Trust Certificate?

Equipment Trust Certificate is a security which is collateralized by specific equipment, often capital in nature. The title is held in trust until the obligation is satisfied. However, the borrower is permitted to use the item provided there are no defaults precluding usage. This security operates in a manner similar to a mortgage or hypothecation agreement.

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APABarry Goldsmith. (2010). equipment trust certificate. Retrieved September 20, 2026, from http://smartdefine.org/equipment_trust_certificate/definitions/1153034
ChicagoBarry Goldsmith. 2010. "equipment trust certificate" http://smartdefine.org/equipment_trust_certificate/definitions/1153034 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, equipment trust certificate, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/equipment_trust_certificate/definitions/1153034>.
MLABarry Goldsmith. "equipment trust certificate" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/equipment_trust_certificate/definitions/1153034>