An Equipment Trust Bond (ETB), also known as an Equipment Trust Certificate, is a type of bond issued primarily by transportation companies to finance the purchase of new equipment. Importantly, the bondholder has the first right to claim the equipment if the issuer defaults on interest and principal payments.
An Equipment Trust Certificate (ETC) is a financial instrument used in the USA to document loans intended for the purchase of major equipment. The certificate holder has a secured interest in the asset, akin to a mortgage, commonly seen in industries like airlines and shipping.
An Equipment Trust Certificate (ETC) is a debt instrument that allows transportation companies to finance the acquisition of equipment such as aircraft, ships, and railroad cars. These instruments are backed by the equipment itself, providing security for the lender and financing terms favorable to the borrower.
