Recourse Financing
/rɪˈkɔːrs ˈfaɪnænsɪŋ/
Definitions
- (n.) A financing arrangement in which the borrower is personally liable to repay the debt, allowing the lender to seek repayment from the borrower's other assets if the collateral is insufficient.
The bank provided recourse financing, making the company personally liable if the loan defaulted.
Forms
- recourse financing
- recourse financings
Related terms
See also
Commentary
Recourse financing contrasts with nonrecourse financing; drafters should clarify liability extent to avoid ambiguity in loan 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.