Recourse Loan
/ˈriːkɔːrs loʊn/
Definitions
- (n.) A loan for which the borrower is personally liable; the lender may seek repayment from the borrower's other assets if the collateral is insufficient.
The bank granted a recourse loan, allowing it to pursue the borrower's other assets if the property went into default.
Forms
- recourse loan
- recourse loans
Related terms
See also
Commentary
Recourse loans contrast with non-recourse loans in terms of borrower liability; precise definitions may vary by jurisdiction and should be clearly stipulated in loan contracts.
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.