§ 37-9-701 — Contracts valid; conditions to validation against subsequent purchaser for value

(a) 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. And in any contract for the leasing or hiring of such
property, it shall be lawful to stipulate for a conditional sale
thereof at the termination of such contract, and that the
rentals or amounts to be received under such 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 such 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:
(i) The same 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;
(ii) Such instrument shall be filed for record in the
office of the secretary of state;
(iii) Each locomotive engine, or car so sold, leased
or hired, or contracted to be sold, leased or hired as
aforesaid, 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.