Sec. 454.025. ENCUMBRANCE OF TRANSPORTATION SYSTEM. (a) To secure the payment of bonds or notes issued under this chapter, a municipality may encumber: (1) all or any part of the mass transportation system; (2) the property of the system, including a bus or other vehicle, machinery, and equipment of any kind used in the operation of the system; (3) the revenue of the system; (4) the franchise of the system; or (5) any other thing relating to the system that is acquired or is to be acquired. (b) A municipality may: (1) encumber separately any property, including a bus or other vehicle, machinery, or equipment of any kind; or (2) acquire, hold, use, or contract for any property, including a bus or other vehicle, machinery, or equipment of any kind, under a lease arrangement, chattel mortgage, or conditional sale, including an equipment trust transaction. (c) This chapter does not prohibit a municipality from encumbering a transportation system for the purposes of purchasing, building, mortgaging, extending, or repairing, or reconstructing another system and purchasing necessary property in connection with the system.
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