adjective
- describing a loan or debt where the lender cannot seek payment from the borrower’s other assets if the collateral is insufficient
Usage: finance; legal
Examples
- The bank offered a nonrecourse loan secured only by the property itself.
- Nonrecourse financing limits the lender’s ability to collect beyond the collateral.
- Many commercial real estate deals use nonrecourse debt to protect investors.
- The nonrecourse provision meant she wouldn’t lose her other assets if the project failed.
- Nonrecourse loans typically have higher interest rates due to increased lender risk.