nonrecourse loan

American  

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

noun

Finance.

1. 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.

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Etymology

Origin of nonrecourse loan

non- + recourse

Example Sentences

An important feature of the loan is that because a reverse mortgage is a nonrecourse loan, the home is the only collateral that the lender may access to pay off the loan balance.

From Seattle Times

Mr. Pitts is now seeking another opportunity for a vote to limit the size of the nonrecourse loan to any single sugar processor, and we hope he gets it.

From The Wall Street Journal

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