What is a 'Certificate of Participation - COP'

A certificate of participation (COP) is 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.

BREAKING DOWN '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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