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Glite Dictionary
🏦 Collateral-only loan 🏦 A collateral loan
nonrecourse

nonrecourse

1 8.3
Relating to a loan where the lender can only take the property if the borrower defaults
  • adjective
  • /ˌnɒnˈriːkɔːrs/
  • Specialized
: sin recurso
  • Many real estate investors prefer nonrecourse loans because they limit their personal liability.
  • nonrecourse loans

Examples

  • I live in a nonrecourse state.

    Blog text (26)

  • To be sure, this compounds the unfair exploitation of nonconsensual creditors, such as tort victims, compared to the corresponding nonrecourse secured loan.

    Academic text (2017)

  • Moreover, under PPIP, the leverage will be nonrecourse, so an investor's loss will be limited to his investment.

    Blog text (21)

  • Much of the information about the product was misleading, such as repayment, while ignoring the nonrecourse nature of the mortgage.

    Blog text (11)

  • Meanwhile, Washington gives generous nonrecourse loans to sugar growers with sugar as collateral.

    Blog text (8)

  • The terms of the nonrecourse loan ensured that the lender could only claim the house if the borrower defaulted.

  • With a nonrecourse mortgage, if the property value declines, the borrower can return the property without further obligation.

Antonyms

recourse
52 6.9

Turning to someone or something for help in a difficult situation

Surface Forms

nonrecourse positive

Morphology

nonrecourse = recourse (transparent) = non + recourse

Formed by the productive negation prefix 'non-' added to 'recourse'; the meaning 'without recourse' is directly derivable in legal contexts.

Etymology

Nonrecourse comes from non- ('not') and recourse ('a way to get help' or 'a return to someone for help'), so it gives the image 'no way back'. That's why a nonrecourse loan (used as an adjective) means the lender cannot go after your other property if you fail to pay and can only take the item you promised as security.