Rail companies typically finance the purchases of locomotives and cars through equipment trust certificates (ETCs). They make a down payment of about 20% with the remainder being financed via the issue of the ETCs. The locomotives and cars are purchased and owned by the trustee who, in turn, leases them to the rail company for a period of about 15 years, at which point they can be acquired by the rail company for some nominal payment.

(Book 3, Module 43.1, LO 43.f)