Definition of "non-recourse"
  1. 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
How to use "non-recourse" in a sentence
  1. The mortgage on the house was a non-recourse loan, so when the borrower defaulted, the bank could only claim the house itself.
  2. Non-recourse loans limit the lender's ability to recoup losses solely to the asset linked as collateral.
  3. 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.

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