An investor has purchased a municipal certificate of participation (COP). COPs can be characterized by all of the following EXCEPT

An investor has purchased a municipal certificate of participation (COP). COPs can be characterized by all of the following EXCEPT



A) they would require voter approval before a municipality could issue them

B) they are a form of municipal revenue bond

C) the holder of a COP could foreclose on the asset generating the revenue in the case of default

D) the holder of the COP participates in lease or loan payments from a specific piece of equipment or facility purchased or built by the municipality



Answer: A) they would require voter approval before a municipality could issue them


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