R.I. Gen. Laws § 39-6-19

Current through 2024 Public Law 457

Section 39-6-19 - Sale of equipment with reserved title or lien - Lease with option to purchase

In any contract for the sale of railroad or street railway equipment or rolling stock, it shall be lawful to agree that the title to the property sold, or contracted to be sold, although possession thereof may be delivered immediately or at any time or times subsequently, shall not vest in the purchaser until the purchase price shall be fully paid, or that the seller shall have and retain a lien thereon for the unpaid purchase money. In any contract for the leasing or hiring of property, it shall be lawful to stipulate for a conditional sale thereof at the termination of the contract, and that the rentals or amounts to be received under the contract may, as paid, be applied and treated as purchase money, and that the title to the property shall not vest in the lessee or bailee until the purchase price shall have been paid in full and until the terms of the contract shall have been fully performed, notwithstanding delivery to and possession by the lessee or bailee; provided, that no such contract shall be valid as against any subsequent judgment creditor, or any subsequent bona fide purchaser for value and without notice, unless:

(1) The contract shall be evidenced by an instrument executed by the parties and duly acknowledged by the vendee or lessee or bailee, as the case may be, or duly proved, before some person authorized by law to take acknowledgment of deeds, and in the same manner as deeds are acknowledged or proved;

(2) The instrument shall be filed for record in the office of the 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.

R.I. Gen. Laws § 39-6-19

G.L. 1896, ch. 187, § 57; G.L. 1909, ch. 215, § 63; G.L. 1923, ch. 251, § 54; G.L. 1938, ch. 124, § 54; G.L. 1956, §39-6-19; P.L. 1997 , ch. 326, § 109.