recourse loan

Definition of "recourse loan"
  1. A type of loan that allows the lender, in case of a default, to reclaim not only the collateral but other personal assets of the borrower
How to use "recourse loan" in a sentence
  1. When John defaulted on his recourse loan, the bank seized his car and other personal assets.
  2. Due to the risks of recourse loans, borrowers always ensure they have a solid repayment plan.
  3. With the recourse loan, the lender protected its interest by having rights to claim the borrower's personal assets in case of loan default.

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