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RecourseTerm describing a type of loan. If a loan is with recourse, the lender has a general claim against the parent company if the collateral is insufficient to repay the debt.Recourse Similar MatchesNonrecourseNonrecourseIn the case of default, the lender has ability to claim assets over and above what the limited partners contributed. Without RecourseWithout RecourseA finance term. A mortgage or deed of trust securing a note without recourse allows the lender to look only to the security (property) for repayment in the event of default, and not personally to the borrower. Nonrecourse loanNonrecourse loanA loan taken by limited partners used to finance their portion of the partnership, which is secured by their ownership in the venture. Without Recourse FinancingWithout Recourse FinancingFinancing in which the right of recourse to the party receiving funds is forfeited to the party advancing funds. This may be evidenced by conditions added to the endorsement of a draft being sold by an exporter in order to protect the exporter, if the instrument is not paid at maturity by the original obligor. Without recourseWithout recourseGiving the lender no right to seek payment or seize assets in the event of nonpayment from anyone other than the party specified in the debt contract (such as a special-purpose entity). Further SuggestionsNonrecourse Loan |
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