Definitions for "Certificates of Participation"
Written document attesting to the fact an investor has made an investment (in part) in an underlying asset.
Certificates of Participation (COPs) are a type of municipal bond that are often used to finance capital improvement projects or equipment. The COPs represent participation in lease payments made by the municipality for the project or equipment.
Simply stated, COPs represent a share in a lease agreement with a municipal or governmental entity. COPs are typically secured by lease payments made by the municipal or governmental entity and are subject to annual legislative appropriations.