Definition of Non-recourse loan:
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.
How to 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.
- If you enter into a non-recourse loan it is imperative that you pay what you owe on time every time.
- 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.
Meaning of Non-recourse loan & Non-recourse loan Definition