recourse loan
- 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
- When John defaulted on his recourse loan, the bank seized his car and other personal assets.
- Due to the risks of recourse loans, borrowers always ensure they have a solid repayment plan.
- 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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