What is a Certificate of Participation (COP) bond?
COPs are a financial obligation the State uses to finance essential public improvements, including state prisons and office buildings, state universities, and other critical public safety projects. Like a GO bond, a COP is, in effect, a loan from investors to the State. Unlike GO bonds, however, COPs are not backed by the full faith and credit of the State; rather, the repayment of the debt service on the COPs is subject to annual appropriation by the Legislature.
