CERTIFICATE OF PARTICIPATION (COP) – An instrument evidencing a pro rata share in a specific pledged revenue stream, usually lease payments by the issuer that are subject to annual appropriation. The certificate generally entitles the holder to receive a share, or participation, in the lease payments from a particular project. The lease payments are passed through the lessor to the certificate holders. The lessor typically assigns the lease and lease payments to a trustee, which then distributes the lease payments to the certificate holders. Compare: LEASE RENTAL BOND. See: ABATEMENT CLAUSE; NON-APPROPRIATION CLAUSE.



