Certificate of participation is another name of participation certificate, and it is a widely used instrument in different organizations. It falls in the category of financial instrument that is usually issued to an individual by the government bodies to acknowledge the purchase of the lease revenue under an agreement made by these bodies. The government agencies also issue bonds, but these are not bonds and there is a great difference between the participation certificate and a bond. The participation certificate is also used to acknowledge the participation of a person in an activity in the class, office or club.
Important Uses of Participation Certificate
There are two famous forms of participation certificate, including financial and non-financial and following are the uses of both types of participation certificate:
Financial Form of Participation Certificate
The financial type of certificates is secured by the lease revenues. The municipal and government bodies avoid any limitations with the help of these instruments that may exist on the amount of debt the certificate holder person may be able to take. It is a latest kind of credit instrument offered by the banks to raise funds from other financial institutions with the approval of central bank for the convenience in the liquidity process. It is a simple way for banks to share their credit assets with other banks by simply issuing participation certificates.
The banks may work jointly under this approach either on the risk sharing or non-risk sharing basis. The certificate can reduce your risk by sharing short term funds with other organizations. The interest rate of these certificates may vary, and the purchasing rate of the certificates can be negotiable on the basis of their interest rate. This type of instrument usually has short maturity dates and can enhance your credit structure.
Here is preview of a Free Sample Participation Certificate Template created using MS Word,
Non-Financial Participation Certificate
The participation certificate may be awarded to a person who participates in a conference, training, meeting, class, club event, etc. The certificate is awarded to acknowledge his/her participation in the event by including the level of his/her participation and performance in the event.
Design of Participation Certificate
The participation certificate is designed according to its needs, and following are some particulars that should be written in the participation certificate:
- The name of organization should be written on the top of the certificate with the logo of organization. The name of participant and his/her designation should be written on the certificate.
- The certificate should contain remarks about the participation of the candidate in the meeting, conference or any other event and get it signed by the concerned personal for authenticity.
- Does not use fancy fonts to write the body of the certificate, it should be professional enough. You can use stylish font to write the headings, like name of the institution, purpose of the certification, etc.
- The financial participation certificate usually contains terms and conditions for the use of certificate, and the name of certificate bearer. The terms and conditions of the certificate may vary from state to state, but the uses of the certificate remain always same.