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

nonrecourse

9.1
A loan where the lender can only take the property if the borrower defaults
  • noun
  • /ˌnɒn.rɪˈkɔːrs/
  • Specialized
: préstamo sin recurso

Examples

  • That will specify whether (and to what extent) your loans are recourse (personally liable) or nonrecourse (not personally liable) under state law.

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  • The contractor secured a nonrecourse loan, allowing him to finance the project without risking his personal assets.

  • Many homeowners prefer nonrecourse loans because they limit their financial liability if the property value declines.

  • Under nonrecourse lending, the bank can only claim the property itself, not the borrower's other possessions.

Antonyms

recourse
52 6.9

Turning to someone or something for help in a difficult situation

Surface Forms

nonrecourse singular
nonrecourses plural

Morphology

nonrecourse = recourse (transparent) = non + recourse

Formed by the productive negation prefix 'non-' added to 'recourse'; the noun sense denotes a loan characterized by absence of recourse.

Etymology

Nonrecourse is formed from non- ('not') and recourse ('a way to get help' or 'a return to someone for help'), so it feels like 'no way back'. That's why a nonrecourse loan (used as a noun) is a loan where the lender can only take the agreed property if you do not pay and cannot claim your other things.