>Most railfans don’t and won’t believe this BUT….
>the banks loan the money for locomotives.
>The banks have the ultimate say.
They have the ultimate say on whether they will take the equipment trust. Quite
a few railroads bought lots of locomotives without Equipment trusts of course,
but it was something of a convenience given the banks saw lots of security in
But that doesn’t mean the holders of equipment trusts (banks, insurance
companies, investment companies, hedge funds nowadays, individuals in the early
days) always come out whole. Those O&W equipment trusts ended up underwater in
the end. There was no resale market for FTs in the summer on 1957.
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