GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Non-recourse Debt


Synonyms:non-recourse loan
Filed Under: financial-banking, mortgages
Tags: banking, debt, mortgage
 

Definition of non-recourse debt

non-recourse debt
1. A secured loan that is backed by collateral, often real property. The borrower of nonrecourse debt is not personally liable for the debt. In other words, if the borrower defaults on his or her loan, the lender can collect the collateral, but the borrower is not responsible for the remaining balance. Also known as "non-recourse debt" or a "non-recourse loan."

Related Terms and Acronyms:

  • borrower   A person who borrows money or obtains a loan.
  • collateral   Any property pledged as security for repayment of a debt.
  • commercial mortgage   A mortgage for commercial property.
  • default   When a borrower fails to fulfill the obligations of a loan or lease.
  • lender   The bank or mortgage company offering the loan.
  • liability   A situation where one party is found to be legally responsible for something.
  • loan   Letting another party use something of value temporarily.
  • policy loan   A loan where a life insurance policyholder's death benefit is used as collateral.
  • real property   Permanent, non-movable property, such as land and buildings.
  • unsecured loan   An advance of money that is not secured by collateral.

More Related Terms and Acronyms

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