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 ?
The insolvency has affected about 12,500 holders of participation certificates.
In a closed rights issue to DMI's existing 7,500 holders of EPCs from across the world, including the Middle East, Asia, Africa and Europe, the capital raising was approved by an extraordinary general meeting of DMI's equity participation certificates holders, the group said in a statement.
1362(d)(3)(F), as amended by AJCA Section 237(a), modifies the definition of passive income to exclude interest income earned by banks and bank holding companies, as well as dividend income earned from assets required, for regulatory purposes, to be held by banks or their holding companies (including stock in the Federal Home Loan Bank, Federal Reserve Bank and Federal Agricultural Mortgage Bank, or participation certificates issued by a Federal Intermediate Credit Bank) .
FREDDIE MAC HAS PURCHASED A $6 MILLION portfolio of multifamily mortgages from Washington Mutual Bank, Seattle, and Washington Mutual Bank, Seattle (WaMu, collectively) in exchange for Freddie Mac participation certificates (PCs).
com, a unique business-to-business e-commerce enterprise, is successfully operating an online marketplace for the estimated $500 billion of commercial mortgage loans and participation certificates traded in the global secondary market.
and swapped for Freddie Mac participation certificates which GMAC then sold though its trading desk.
Instead of becoming registered shareholders, employees receive participation certificates and regular account statements.
Mortgage securities, such as participation certificates and CMOs issued by FNMA or FHLMC, are risk weighted at 20 percent because they are government-sponsored agencies that carry only the implied backing of the United States.
The promising contestant prize was given to Alaa Tarek and Safa Ghalib of Al Kawther Secondary School Trophies and certificates were awarded to the winners and participation certificates were distributed to all participants and teachers.
During this workshop, the best photos taken by the participants will be announced in addition to participation certificates for all.
At the conclusion of the ceremony the hikers were given participation certificates.

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