Legal Definitions - equipment

Definition: Equipment refers to the tools, machines, or other items used for a specific purpose or activity, especially in a business operation. According to the Uniform Commercial Code (UCC), equipment includes goods that are used in or bought for a business enterprise, profession, farming, nonprofit organization, or governmental subdivision or agency, and are not inventory, farm products, or consumer goods.

Examples: Examples of equipment include:

• Construction equipment such as bulldozers, cranes, and excavators
• Office equipment such as computers, printers, and telephones
• Medical equipment such as MRI machines, X-ray machines, and surgical tools
• Restaurant equipment such as ovens, refrigerators, and dishwashers

These examples illustrate how equipment is used in various industries and professions to carry out specific tasks or operations. For instance, construction equipment is used to build structures, while medical equipment is used to diagnose and treat patients. Office equipment is used to facilitate communication and productivity, and restaurant equipment is used to prepare and serve food.

Definition: An equipment trust is a financing device commonly used by railroads. In this arrangement, a trustee and the railroad jointly purchase equipment from a manufacturer, with the trustee providing most of the purchase price. The trustee then leases the equipment to the railroad, which pays a rental fee comprising interest, amortization for serial retirement, and the trustee's fee.

This example illustrates how equipment trusts are used in a specific industry, namely railroads, to finance the purchase of equipment. By using an equipment trust, railroads can acquire the equipment they need without having to pay the full purchase price upfront. Instead, they can make payments over time, which can help them manage their cash flow and budget more effectively.