What is the main purpose of Certificates of Participation?

Certificates of Participation (COPs) primarily serve as a means to secure funds against public lease revenues. This financial tool allows municipalities to fund projects by enabling them to lease public assets while providing investors a share of the lease revenues as a form of return. By issuing COPs, a government entity can avoid traditional bond issuance processes, thus facilitating quicker access to capital for important projects such as infrastructure development.

The essence of COPs lies in their structure, where investors essentially buy a stake in the lease payments the municipality will make for using the financed asset. This connection to lease revenues is crucial, as it outlines the repayment source for investors. Hence, the main purpose of COPs hinges on leveraging future lease income to generate immediate funds for public projects or services. This makes option C the most accurate portrayal of COPs' main purpose.