nonrecourse loan

American

[non-ree-kawrs, -kohrs, non-ri-kawrs, -kohrs] / nɒnˈri kɔrs, -koʊrs, ˌnɒn rɪˈkɔrs, -ˈkoʊrs /

noun

Finance.

a loan for which the borrower cannot be held responsible for any amount in excess of the security for the loan, even if the value of such security falls below the level it had or that had been anticipated for it at the time of the loan.

Etymology

Origin of nonrecourse loan

non- + recourse

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The packager obtains a bank loan for the remaining 75%�a "nonrecourse" loan that will be repaid only if the film makes money.

From Time Magazine Archive

As a partnership they often borrowed the rest on a "nonrecourse" loan, paper for which the partners are not personally liable.

From Time Magazine Archive

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023