What is a Certificate of Participation?
A – A Certificate of Participation (“COP”) is essentially a lease financing that is broken into smaller pieces ($10,000 for example) and sold in the retail market place by the underwriter/lessor. This concept came about when voters kept turning down bond issues and the investment banking industry was looking for new products. Generally, a COP requires a minimum of $3 million and a term of at least seven years to justify the Costs of Issuance; otherwise, a traditional single investor lease can be less expensive to the lessee.
The Certificate of Participation is a financial document that is often employed when a municipal government or other government entity creates a bond issue. Rather than paying interest on the bonds or guaranteeing a face value at the end of the project, the investor receives a return based on the lease revenues associated with the offering. Making use of this process can work very well for the municipality, since it will free the issuer from restrictions on the amount of debt that can be incurred during the course of the project. For many cities and towns, the Certificate of Participation approach to a bond issue will follow a simple formula. A bond issue is created in order to fund the construction of some sort of capital facility that is within the city limits. Rather than owning the facility outright during the period of construction, the city essentially leases the facility during the construction period and makes installment payments toward the lease. When the payment schedule is
Once you have submitted your completed application for hole in one insurance, putting contest coverage, or shootout coverage, US Hole In One will bind your application to complete the indemnification process. To signify proof of coverage, a “certificate of participation” is created and sent to you. This document outlines EXACTLY what was purchased in terms of contest coverage for your event. Our processing department typically emails the certificate to you immediately after the coverage has been purchased. However, if you fail to provide US Hole In One with an email address, the certificate cannot be sent to you. If you should have any questions regarding your certificate of participation, or questions regarding the hole in one insurance purchasing process, please feel free to contact your tournament consultant at US Hole In One today.
