recourse loan



Loan agreement under which a borrower gives an undertaking to repay a debt even if the funded asset (acquired with the loan proceeds) cannot be liquidated to cover the loan amount. In case of a default, the lender can seize and sell the funded asset as well as the borrower's un-pledged assets or properties. See also non recourse loan.

Use recourse loan in a sentence

  • I was offered to pay back a recourse loan and I denied because I knew how those worked and did not want anything to do with one.

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  • You may need to take out a recourse loan if you do not have the cash on hand but need to get some quickly.

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  • You should know where you stand in a recourse loan and make sure to follow all of the guidelines set forth in it.

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