Definitions
from Wiktionary, Creative Commons Attribution/Share-Alike License.
- adjective finance Of or pertaining to a form of
financing , typically debt financing, in which the lender'srecourse torecovery in the event ofdefault is limited to thecollateral asset only.
Etymologies
from Wiktionary, Creative Commons Attribution/Share-Alike License
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Examples
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The morality argument is especially weak in a state like California or Arizona, where mortgages are so-called nonrecourse loans.
Does Morality Keep Underwater Homeowners From Walking Away? - The Consumerist 2010
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The morality argument is especially weak in a state like California or Arizona, where mortgages are so-called nonrecourse loans. ...
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The morality argument is especially weak in a state like California or Arizona, where mortgages are so-called nonrecourse loans.
Abnormal Returns Now 2010
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The terms of the loan provide that as payments are received on the securities, they are applied against the interest and principal amount of the loan, and that the loan is otherwise nonrecourse, that is, the company is liable only to the extent of the value of the collateral pledged as security.
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The so-called private investors would be able to put up money they borrowed from the Fed through "nonrecourse" loans, meaning if the toxic assets purchased prove too toxic and the scheme failed, the private investors could just walk away without repaying the Fed for those loans.
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The loans the Fed makes to investors are nonrecourse, meaning investors can't lose any more than the money they put upfront on the security.
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Because residential mortgages are generally "nonrecourse" loans (i.e., secured only by the underlying property), homeowners with negative equity have an incentive to default, leaving the banks with net losses.
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Mr. Paulson said the loans would likely be nonrecourse, meaning investors wouldn't have to pay the Fed back if the underlying borrower defaults.
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Then there is the fact that such mortgages are almost always nonrecourse, meaning the lender can seize the property but has no claim on other assets of the owner.
NYT > Home Page By FLOYD NORRIS 2010
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In what Mr. Sorkin describes as the closest thing to leveraged, risk-free investing around, these loans insured by the F.D.I.C. are "nonrecourse," meaning that if an investor loses money, he owes taxpayers nothing.
DealBook 2009
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