§ 39-6-19 - Sale of equipment with reserved title or lien – Lease with option to purchase.
SECTION 39-6-19
§ 39-6-19 Sale of equipment with reservedtitle or lien – Lease with option to purchase. – In any contract for the sale of railroad or street railway equipment or rollingstock, it shall be lawful to agree that the title to the property sold, orcontracted to be sold, although possession thereof may be delivered immediatelyor at any time or times subsequently, shall not vest in the purchaser until thepurchase price shall be fully paid, or that the seller shall have and retain alien thereon for the unpaid purchase money. In any contract for the leasing orhiring of property, it shall be lawful to stipulate for a conditional salethereof at the termination of the contract, and that the rentals or amounts tobe received under the contract may, as paid, be applied and treated as purchasemoney, and that the title to the property shall not vest in the lessee orbailee until the purchase price shall have been paid in full and until theterms of the contract shall have been fully performed, notwithstanding deliveryto and possession by the lessee or bailee; provided, that no such contractshall be valid as against any subsequent judgment creditor, or any subsequentbona fide purchaser for value and without notice, unless:
(1) The contract shall be evidenced by an instrument executedby the parties and duly acknowledged by the vendee or lessee or bailee, as thecase may be, or duly proved, before some person authorized by law to takeacknowledgment of deeds, and in the same manner as deeds are acknowledged orproved;
(2) The instrument shall be filed for record in the office ofthe secretary of state;
(3) Each locomotive engine or car so sold, leased, or hired,or contracted to be sold, leased, or hired, shall have the name of the vendor,lessor, or bailor plainly marked on each side thereof, followed by the word"Owner," or "Lessor," or "Bailor," as the case may be.