Non-Recourse Financing
/ˌnɑn rɪˈkɔrs faɪˈnænsɪŋ/
Definitions
- (n.) A type of loan arrangement where the lender's recovery is limited solely to the collateral specified in the loan agreement, and the borrower is not personally liable for any debt beyond the collateral's value.
The developer secured non-recourse financing for the construction project, protecting personal assets from lender claims.
Forms
- non-recourse financing
- non-recourse financings
Related terms
See also
Commentary
Non-recourse financing is commonly used in project finance and real estate transactions to limit borrower liability; drafters should clearly specify the collateral and liability limits to avoid unintended personal guarantees.
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.