nonrecourse
/ˌnɑnˈrikɔrs/
adjective
- Describing a type of loan or debt where the lender cannot claim anything beyond the collateral if the borrower fails to pay.
- The contract specified that the debt was nonrecourse, meaning the lender had no claim on other assets.
- They took out a nonrecourse loan to buy the apartment, so the bank could only take the property if they defaulted.
- Nonrecourse financing is common in real estate because it limits the borrower's personal risk.
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