non-recourse
- A type of debt where, in case of default, the lender can only claim the specific collateral provided and cannot seize any other property from the debtor
- The mortgage on the house was a non-recourse loan, so when the borrower defaulted, the bank could only claim the house itself.
- Non-recourse loans limit the lender's ability to recoup losses solely to the asset linked as collateral.
- When the business couldn't pay its loan, the lender, due to it being a non-recourse loan, only had rights to the business's property and not to any personal assets of the business owner.
Provide Feedback
