limited recourse debt

limited recourse debt
USA
limited recourse debt, Also known as a non-recourse debt. A debt that is secured by a security interest in collateral but for which the lender has limited claims against the borrower in the event of a default. If the borrower defaults, the lender can exercise its rights with respect to the collateral, but the lender's recovery is limited to the collateral. The borrower is not personally liable for any shortfall between the amount of the debt and the amount realized on the collateral.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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