Certificate of Participation - COP

Definition of 'Certificate of Participation - COP'


A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues.

Investopedia explains 'Certificate of Participation - COP'


The authority usually uses the proceeds to construct a facility that is leased to the municipality, releasing the municipality from restrictions on the amount of debt that they can incur.



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