non-recourse note
- A type of loan agreement where the lender can only retrieve their money from the collateral that is put up for the loan in case of a default
- The bank provided a non-recourse note for the loan on the real estate project; if the borrower defaults, they can only claim the project's assets.
- The business opted for a non-recourse note to ensure that personal assets would not be at risk in case they could not repay the loan.
- Non-recourse notes provide some protection for borrowers as they limit the lender's ability to claim assets beyond the agreed collateral.
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