What happens at the end of a certificate of participation agreement?

At the end of a certificate of participation (COP) agreement, the government maintains ownership of the facilities. This outcome is crucial as it reflects the primary purpose of COPs, which allow governments to finance needed projects while still retaining crucial rights to the assets involved.

In COP agreements, investors provide funds for a project, and in return, they receive a share of the lease payments made by the government. Upon the completion of the agreement, assuming all payments have been made as per the terms, the rights and interests of the investors typically cease, while the government retains ownership and continues to use the facilities that were financed through the COP.

This structure allows governments to leverage the needed capital to build or improve infrastructure without giving up ownership, ensuring that valuable assets remain under public control to serve the community's needs effectively.