participation certificate
(redirected from Certificates of Participation)Participation Certificate
1. An alternative to a government or municipal bond in which an investor buys a share in the improvements or infrastructure the government entity intends to fund. This contrasts with a bond, in which the investor loans the government or municipality money in order to make these improvements. This is used primarily when the government or municipality has a charter-mandated debt ceiling. In the United States the only entities issuing or guaranteeing participation certificates are Freddie Mac, Fannie Mae, Ginnie Mae, and Sallie Mae.
2. See: International Depository Receipt (IDR).
2. See: International Depository Receipt (IDR).
participation certificate
A certificate indicating ownership in a pool of assets, generally mortgages.