Non-Recourse Loan
/ˌnɒn rɪˈkɔːrs loʊn/
Definitions
- (n.) A loan secured by collateral where the borrower is not personally liable beyond the collateral's value.
In a non-recourse loan, if the borrower defaults, the lender can seize the collateral but not pursue the borrower's other assets.
Forms
- non-recourse loan
- non-recourse loans
Related terms
See also
Commentary
Non-recourse loans limit lender recovery to specific collateral, making them important in risk allocation. Drafting should clearly specify collateral and liability limits.
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.