participation certificate

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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).

participation certificate

A certificate indicating ownership in a pool of assets, generally mortgages.
References in periodicals archive ?
Following the closing of the public exchange offer, Lafarge is planning to initiate, in accordance with Swiss law, a squeeze-out procedure for all Cementia bearer shares and participation certificates which have not been tendered.
government-sponsored agency securities, for example, FHLMC participation certificates, that qualify for a risk weight of 20 percent and conventional mortgage loans that qualify for a risk weight of 50 percent, then the security would receive the 50 percent risk weight.
The School District of the City of Independence, Jackson County (MO), $2,785,000 insured taxable lease participation certificates, series 2009B
The presentation left no doubt in the participants that AvW is obliged to buy the participation certificates back, the verdict of the Klagenfurt court reads.
495 billion Ordinary Participation Certificates (CPOs), including the over-allotment option, with estimated net proceeds of US$1.
Federal Reserve Bank stock, Federal Home Loan Bank stock, Federal Agricultural Mortgage Bank stock or participation certificates issued by a Federal Intermediate Credit Bank that represent nonvoting stock in the bank).
State of Rhode Island & Providence Plantations state lease participation certificates upgraded to 'AA-' from 'A+'.
All participants will be given participation certificates and winners will get attractive cash prizes, certificates and attractive trophies," said ISC Honorary Sports Secretary Ziad Kamarudheen.
The ambassador lauded the performance of the contestants and conferred participation certificates to all students, while the winners were awarded the prizes.
The employer corporation planned to secure the benefits by transferring to the participants nonnegotiable, nontransferable participation certificates, which were to be secured by irrevocable standby letters of credit.

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