recourse note
- A type of financial obligation that allows the lender to lay claim upon any of the borrower's assets, not just the asset that serves as collateral, if the borrower is unable to fulfill the note
- In the event of a default, the bank can seize any of the company's assets due to the terms of the recourse note.
- A recourse note was drawn up to provide the lender more security against the borrower's potential default.
- If a business fails to make payments on their loan, a recourse note allows the lender to claim beyond the pledged collateral.
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