Benefits of Certificates of Participation
- Tax-Exempt Interest Rate
- Pooled or Single Issues
- Level Payment Plan
- Enhanced Revenues
- Reduced Costs of Issuance
- Personalized and Responsive Customer Service

Certificates of Participation - Single Issuers
Certificates of Participation (COP's) are available to single issuers, who can benefit from the flexibility and responsiveness of the program for borrowings of sufficient size. CSDA Finance Corporation together with its financial consulting team raises funds to finance the district's projects through a public offering to investors. In return, those investors receive either a security interest in the asset and a stream of payments (principal repayment at maturity and semi-annual interest), or a first lien and pledge from a certain revenue source and a stream of payments, both mechanisms for which the interest portion is exempt from federal and California income taxation.

Certificates of Participation - Pooled Transaction
Certificates of Participation (COP's) financing is most frequently structured as a pooled transaction. Benefits of the COP Program include competitive interest rates; level payments which enable the district to spread the cost of financing the asset or project evenly over its useful life; and ownership of the asset.

By combining a number of special districts into a pooled COP transaction, CSDA Finance Corporation's program allows each participant to share the advantages afforded by economies of scale, low front-end costs, and CSDA Finance Corporation's established creditworthiness and name recognition in the tax-exempt capital market place. Post issuance, CSDA Finance Corporation monitors a district's outstanding obligations to determine refinancing the debt to a lower interest rate, thereby further reducing annual payments.

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