Definition of Recourse:
Negotiable instrument: Legal right of the holder to demand and require payment from the drawer, maker, or endorser if the instrument (such as a check, draft, promissory note) is dishonored. See also with recourse and without recourse.
A recourse is a legal agreement that gives the lender the right to pledged collateral if the borrower is unable to satisfy the debt obligation. Recourse refers to the lender's legal right to collect. Recourse lending provides protection to lenders, as they are assured of having some repayment, either in cash or liquid assets. Companies that use recourse debt have a lower cost of capital, as there is less underlying risk in lending to that firm.
Recourse provides the legal means for a lender to seize a borrower's assets if the borrower defaults on a debt. If the debt is full recourse, the borrower is liable for the full amount of the debt even to the extent it exceeds the value of the collateralized asset.
Loan agreements: Legal right of a lender to seek repayment of the loan from the borrowers (and/or the guarantors) unpledged personal property, in addition to the property pledged to the lender as collateral.
A source of help in a difficult situation.
Synonyms of Recourse
Ability, Access, Admittance, Agency, Alternative, Availability, Backup, Capacity, Capital, Dernier ressort, Device, Devices, Disposable resources, Entree, Expediency, Expedient, Funds, Going between, Hope, Instrumentality, Intermediation, Last resort, Machinery, Makeshift, Means, Mechanism, Mediation, Method, Pis aller, Power, Recourses, Refuge, Remedy, Reserve, Resort, Resorts, Resource, Resources, Service, Shift, Stock, Stopgap, Substitute, Supply, Ways, Ways and means, Wherewith, Wherewithal, Option, Possibility, Alternative, Possible course of action, Resort, Way out, Person to turn to, Place to turn to, Source of assistance, Available resource, Hope, Remedy, Choice, Expedient
How to use Recourse in a sentence?
- If a borrower defaults on a recourse loan, the lender might levy the borrower's bank accounts or garnish wages in order to repay the debt balance.
- A non-recourse loan, however, restricts the lender to claim only the specific asset pledged as collateral in the event of default.
- Recourse is the lender's legal right to collect the borrower’s pledged collateral if the borrower does not pay their debt obligation.
- Because no criminal files were charged, the Martin family had no legal recourse but to sue the Miami police department.
- I wondered what my friends recourse would be when he got to Moscow a day before his Visa started and realized he could not get into the country.
- Surgery may be the only recourse.
- When Lindsey lost her job and couldnt make her payments, the bank informed her they had no recourse but to call her mortgage.
- Full recourse means that in addition to the collateral the lender can also seize other assets from the borrower to repay the debt.
Meaning of Recourse & Recourse Definition