Limited Recourse Financing
/ˈlɪmɪtɪd rɪˈkɔːrs faɪˈnænsɪŋ/
Definitions
- (n.) A financing arrangement where the lender's recovery is limited to specific collateral or project assets, protecting the borrower's other assets from claims.
The developers used limited recourse financing to fund the construction without risking personal assets.
Forms
- limited recourse financing
- limited recourse financings
Related terms
See also
Commentary
Limited recourse financing is often used in project finance to allocate risk; precise definitions depend on the scope of collateral and guarantees in the financing documents.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.