nonrecourse expense

Definition

An expense that arises from the payment of a non-recourse loan. Where a borrower is unable to pay a loan, the loan issuer's only option of receiving payment for the loan is by seizing and selling the collateral deposited by the borrower. Regardless of the loan amount, only funds generated from the sold collateral(s) can be used to clear the debt, any loss made between the generated fund and loan issued is then referred to as "non-recourse expense".
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
nonrecourse debt nonrecourse loan