Certificate of participation (COP)

Certificate of participation (COP),

Definition of Certificate of participation (COP):

  1. Lease arrangement in which a lessors ownership interest is bought by investors who then share income from the leased asset (and in the associated tax advantages) in proportion to their investment. Such leases are usually assigned to a trustee who oversees the distribution of lease income.

  2. 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. Certificates of participation are secured by lease revenues.

  3. A certificate of participation (COP) can also be referred to as a participation certificate.

How to use Certificate of participation (COP) in a sentence?

  1. A certificate of participation (COP) allows investors to participate in a pro-rata share of a lease-financing agreement.
  2. As opposed to bond participation, COPs pay investors via lease revenues as opposed to bond interest.
  3. COPs are a commonly found in municipal financing as an alternative to muni bonds.

Meaning of Certificate of participation (COP) & Certificate of participation (COP) Definition