non-recourse loan

  

Definition

Loan agreement under which the collateral securing a loan is the ultimate source of repayment, and the lender cannot hold the borrower personally liable in the event of a default. The lender can seize (and sell) the collateral but cannot seize non-pledged asset or property. See also recourse loan.

Use non-recourse loan in a sentence

  • If you have entered into a non-recourse loan you must be sure to pay it back on time to not effect your credit.

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  • I was informed we would be signing a non-recourse loan which was not the same as all the other loans, but had some similarities.

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  • If you enter into a non-recourse loan it is imperative that you pay what you owe on time every time.

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