Nonrecourse Financing
/ˌnɒnˈriːkərs ˈfaɪnænsɪŋ/
Definitions
- (n.) A type of loan where the lender's recovery is limited to the collateral securing the loan, with no further recourse to the borrower's other assets.
The developer secured nonrecourse financing, so the lender could only claim the property if the loan defaulted.
Forms
- nonrecourse financing
- nonrecourse financings
Related terms
See also
Commentary
Nonrecourse financing limits lender liability strictly to the collateral, commonly used in real estate and project finance to manage risk exposure.
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.